The crazy world of cryptocurrency is at it again. This time litecoin (think of it as the silver to bitcoin’s gold) was making headlines.
Litecoin’s price has surged higher in the wake of several successful developments this year. But it has been performing particularly well lately. Here’s a graph of the past week:
You can see why we get excited by crypto here at Money Morning.
Why litecoin price is leading a charge?
Litecoin’s was introduced in 2011, and is designed to be very similar to bitcoin. The main advantage at the time was that it processed transactions faster. Since then the two cryptos have continued to change and diverge as each has gone through several updates.
Currently, litecoin’s development has surpassed bitcoin, at least for now. The bitcoin community has been struggling to agree on direction as of late. The most important decision has been the adoption of Segregated Witness known colloquially as SegWit. Litecoin completed adoption of SegWit in early May this year.
SegWit, at face value, is basically code optimisation. Now I don’t have a deep understanding of programming, so I’ll try and keep this is a simple as possible for both you and I.
SegWit frees up room on transaction blocks to allow more transactions to be recorded. Think of it like this: if each transaction was handwritten, SegWit would mean we don’t need to write down as much as before, so we have can fit more records on a single page. In turn this makes the system leaner and faster.
SegWit is far more detailed than this, but hopefully this helps you understand why it’s a benefit. The bottom line is, litecoin has it, bitcoin doesn’t — yet.
Importantly though, SegWit will allow a blockchain to take advantage of the Lightning Network. Again to simplify, the Lightning Network will improve transaction speed and volume of blocks. We’re an impatient society; we want things done quickly, but still securely.
Litecoin’s creator, Charlie Lee, announced soon after SegWit adoption that litecoin would be implementing the Lightning Network. Another strong win for litecoin, and one that should secure a promising future.
Charlie Lee had been working as an engineer for coinbase, a crypto exchange site. But in June Lee decided to quit that job to pursue working with litecoin full-time. That’s another key difference between litecoin and bitcoin. The creator of bitcoin, Satoshi Nakamoto — which may not even be their real name — has never surfaced. Whereas Lee was, and continues to be, the figurehead for litecoin. Lee’s influence has been crucial for litecoin’s success. His role in making SegWit and the Lightning Network possible was vital.
What’s next for for litecoin?
Litecoin’s future looks bright as they continue to outpace bitcoin in terms of development. We’ll be keeping a close eye on their progress, and be sure to keep you updated. It’s hard to know exactly where these digital coins are going to end up. There are just too many unknowns when dealing with something this new.
But, like all cryptos, litecoin is currently enjoying the success of a flourishing market. It’s volatile as all hell, but they continue to make ground. We think they are one the most exciting opportunities for investors right now. The trouble is knowing how to navigate the minefield of winners and losers.
Which is why Sam Volkering has released his new Secret Crypto Network service. In it you will find critical information on how to invest in cryptocurrencies and the best recommendations from Sam himself. He’s spent years learning all about the crypto markets, so if you want to learn how to start investing, check out this new service today.
Junior Analyst, Money Morning