Litecoin Price Chart (LTC)

What is Litecoin?

Litecoin is a cryptocurrency similar to Bitcoin. It was created in October 2011 by Charlie Lee. Lee wanted to make a less involved version of Bitcoin, but with many of the same features and uses. Litecoin is an open-source software. No single authority controls it.

If you're deep in the world of cryptocurrency, you know there's more out there than Bitcoin. Litecoin is gaining in popularity and price—and has been for the last few years.

Instead of using Bitcoin's hashing algorithm for mining, Litecoin uses a more advanced process. Its algorithm is called Scrypt, and its serialized calculations make it impossible to use parallel processing the same way as the SHA-256 algorithm does. Because Scrypt doesn't have enough memory to parallel process, its mining processes must be done sequentially, making mining more accessible than Bitcoin's system.

Litecoin's currency is called LTC. You can mine LTC using Scrypt or buy it through exchanges with credit, debit, bank transfer, cash, and even using other cryptocurrencies like Bitcoin or Ethereum. Litecoin has a 2.5-minute block mining speed, which helps to decentralize LTC. Faster block mining also means that you can take advantage of the block reward more often.

How is the Price of Litecoin Determined?

The most significant determining factor in the market value and price of Litecoin is the simple concept of supply and demand. Litecoin mining also helps determine the LTC price, as it decides how much LTC circulates in the marketplace.

Litecoin's market capitalization depends on the current market value of outstanding stock. Its market cap stands at fifth place among other cryptocurrencies, after Bitcoin, which holds its position in first with a nearly $300 billion market cap. Comparatively, the Litecoin LTC market cap is at $15 billion.

While Litecoin's trading volume continues to grow, the Litecoin price has not always been as high as it is now. On Jan. 14, 2015, the value of Litecoin LTC experienced an all-time low at $1.20 per LTC. Since then, the price action has risen to put LTC around $60, which has contributed to its continued success as a cryptocurrency.

As more people join the Litecoin market, the price goes up over time. Buying LTC is simple—all you have to do is create an account on an exchange using an email address and identification. As a nascent market, Litecoin price fluctuates. With a circulation limit of 84 million LTC, the prediction for Litecoin's market says that prices will increase over time, especially as the demand grows.

How Many Litecoins are Left?

Because the limit for the total number of LTC in circulation is 84 million, that means that only that number of Lit coins can exist at a time. The number of remaining Litecoins depends on how many are currently circulating. As of Jan. 29, 2020, 63,966,736 LTC were in circulation, leaving 20,033,264 Litecoins available.

One significant advantage of Litecoin is its high limit. It's over four times the number of Bitcoin available, which appeals to buyers in that because the limit is so high, more people buy Litecoin, and the amount of available LTC doesn't appear to go down.

Despite that the numbers do decrease, the number of decimal places makes it appear as if the number of Litecoins are endless. In contrast with other cryptocurrencies, including Bitcoin, Litecoin gives the illusion that there will always be LTC available.

However, the number of Litecoin will eventually reach the limit of 84 million. The current block reward generated is 12.5 LTC. The reward is halved once a certain point is reached to prevent the number of LTC from reaching its limit too quickly.

Halving has already happened once, reducing the reward 25 to 12.5. The next halving will decrease the reward per block to 6.25. While this does slow the growth of LTC toward its limit, the number will eventually reach that point as more people invest.

What Can You Use Litecoin For?

More and more often, cryptocurrencies are becoming accepted as a form of payment for physical goods. Now you can use Litecoin and other types of crypto for purchasing everything from real estate to pet products and groceries.

As people come to place more value on cryptocurrency, the uses for it expand. While making purchases with Litecoin gives it a practical purpose, there's also its value in the crypto market itself. Because of the 84 million LTC limit, many investors find Litecoin attractive as an investment option.

You can buy and sell it on various trading platforms like Binance and Coinbase. All you have to do is create your account with a valid email address and ID, and you can buy or sell your Litecoin whenever you want. You can invest with fiat money or other cryptocurrencies, depending on how you want to disperse your assets in different types of crypto.

Cryptocurrencies like LTC are becoming a unique form of coin, as their value is primarily based on the value assigned by those who use and trade them. As more businesses accept crypto as a form of payment, Litecoin's value goes up, and it can be used more widely—even in some brick and mortar establishments.

Is Litecoin Better than Bitcoin?

In many ways, Litecoin has an advantage over Bitcoin. Part of that might be because it was born out of improving upon Bitcoin. It began with the goal of creating a new cryptocurrency that surpassed Bitcoin in terms of convenience above all.

At 2.5 minutes each, Litecoin's transactions process much faster than Bitcoin's, which takes an average of 10 minutes. Litecoin's Scrypt algorithm also makes it more accessible, so more people can trade, despite its memory problem. Still, it has the capacity to handle more transactions than Bitcoin.

Litecoin's fees are much lower, too, meaning that instead of the noticeable percentage that comes out with every Bitcoin transaction, Litecoin only charges 1/1000 of an LTC.

While it isn't yet as popular as Bitcoin, and therefore isn't as widely accepted as payment, its technology makes it easier to use for day to day purchases. Litecoin is also easier to mine than Bitcoin, which speaks to its intended improvements.

That said, Bitcoin is more widely used, and with features like zero-confirmation transactions, the disadvantages to Bitcoin hardly seem like a big deal at all. While Litecoin may be an up and coming cryptocurrency, it hasn't quite reached Bitcoin's level of success.