Home Litecoin Charlie Lee’s 9 Favorite Things About Litecoin

Charlie Lee’s 9 Favorite Things About Litecoin

13 min read

In short

  • Litecoin marks its tenth anniversary in 2021.
  • Charlie Lee instructed us why LTC has spent practically 10 years as a top-ranking cryptocurrency.
  • In 2017, Litecoin spotlit the difficulty of what occurs to a significant crypto when a founder cashes out.

It’s an enormous 12 months for Bitcoin spin-off Litecoin. The cryptocurrency—usually described because the silver to Bitcoin’s gold—celebrates its tenth anniversary in October. 

Not too long ago, Decrypt sat down with Litecoin’s founder Charlie Lee, an MIT graduate and Google veteran, to search out out simply what’s so nice in regards to the cryptocurrency he designed. We’ve boiled his solutions down into good helpful info. 

In 9 years, Litecoin had zero downtime 

Bitcoin and Ethereum, the highest two rating cryptocurrencies by market cap, have each skilled downtime—however not Litecoin, based on Lee.  

“Litecoin has been working nonstop for nearly 10 years,” Lee instructed Decrypt. “It is one of many few cash that may declare that. Even Bitcoin has had points the place there’s been like a fork and a certain quantity of downtime. Litecoin has not had any downtime since I launched it in October of 2011.”

It’s been a top-10-ranking cryptocurrency ever because it was invented

It could have gone up and down in rank, however Litecoin has been within the top 10 cryptocurrencies by market cap for just about the entire time because it launched. It’s presently at quantity eight, between Chainlink and Bitcoin Cash. However Decentralized Finance (DeFi) cash, comparable to Wrapped Bitcoin (WBTC) and Uniswap’s governance token UNI, are rising quick. 

“There’s a whole lot of cash which have had their quarter-hour of fame however receded,” stated Lee.”Litecoin has by no means actually left the highlight; it is fairly spectacular.” 

Litecoin’s mining algorithm provides it a safety benefit

Litecoin makes use of a special mining algorithm to Bitcoin. Which means it could dominate the so-called “hashrate” of the algorithm it makes use of, which is named Scrypt.

That’s not an possibility obtainable to Bitcoin Money, for instance; like Bitcoin, it makes use of the SHA-256 algorithm, however solely has round 2% dominance, making it susceptible to assault. In distinction, LTC’s Scrypt dominance is at round 99%, stated Lee.

Litecoin is a Bitcoin spinoff however makes use of a special mining algorithm Picture: Shutterstock

“There is no incentive for Litecoin miners to assault Litecoin as a result of they’re principally attacking their very own, whereas for SHA-256 miners, in the event that they assault Bitcoin Money and Bitcoin Money dies due to it, they don’t actually lose a lot cash in any respect, as a result of they will return [to mining Bitcoin],” he defined.

Litecoin has excessive liquidity

Litecoin is listed on each main cryptocurrency change. Like Bitcoin, it’s used as a retailer of worth, however its super-low charges and sooner transaction price have boosted its reputation as technique of change.

Cryptocurrencies ranked by buying and selling quantity. Picture: CoinGecko.

“At the moment, the market cap is $9 billion, however the quantity is $8.5 million {dollars}. The buying and selling quantity exceeding the market cap is fairly spectacular, so it is very liquid,” stated Lee. 

It has extra ATM assist than any crypto, besides Bitcoin

The newest information from CoinATM Radar places the variety of ATMs supporting Litecoin at 9,425, whereas virtually 15,000 ATMs now supply Bitcoin. Stories final 12 months prompt that LTC was set to be enabled in 13,000 ATMs in Korea, which might imply it has extra assist worldwide than even Bitcoin. 

“There are a whole lot of locations the place you should buy and promote Litecoin, it’s the second-best supported [cryptocurrency,]” stated Lee. 

Litecoin is supported by PayPal

In October 2020, PayPal introduced support for Bitcoin, Ethereum, Bitcoin Money, and Litecoin, which implies that its 350 million US clients can now purchase and pay for items and providers in these cryptocurrencies. 

“Folks selected to assist Litecoin as a result of it is a helpful foreign money and it is one of many prime currencies,” stated Lee.

After all, not everybody within the crypto neighborhood is head-over-heels in love with PayPal. It is are available in for criticism over its phrases and circumstances, which state that the crypto in your account “cannot be transferred to different accounts on or off PayPal.” Nonetheless, although, it is opened the doorways for some 26 million merchants to just accept funds in cryptocurrency—together with Litecoin.  

Privateness options are coming to Litecoin

Litecoin is getting a significant improve over the approaching months to offer it so-called “fungibility,” the place one coin is indistinguishable from one other.  

“That is what makes cash highly effective as a result of each coin or any invoice is identical—it is fungible. Presently, that is not the case with Litecoin and Bitcoin,” stated Lee. “There are tales you hear that folks deposit some cash to Coinbase and their account will get banned, as a result of the cash are linked to a darkish market, for instance,” he defined. 

MWEB, the opt-in privateness and fungibility characteristic being launched, means the cash can’t be ‘tainted’ by what they’ve been used for up to now. It’s an optionally available characteristic and capabilities as a sort of sidechain. Lee believes it’s going to be a significant promoting level.

Nearly 2% of LTC is locked up within the Grayscale Litecoin Belief

Digital asset supervisor Grayscale Funding made headlines when it introduced a file $27.1 billion in belongings below administration final week. It’s one of many few methods institutional buyers can get publicity to Bitcoin with out having to carry the asset itself.

The Grayscale Bitcoin Trust has pulled within the bulk of the funds—and generated nearly all of the headlines—however the asset supervisor additionally operates trusts for a small variety of different cryptocurrencies, together with Litecoin. 

Market efficiency of the Grayscale Litecoin Belief. Picture: Grayscale

“The Grayscale Litecoin Belief is doing rather well,” stated Lee, declaring that $173 million LTC is presently locked in it—which represents virtually 2% of all Litecoin in existence. “It’s exhausting to know what a fancy demand there’s on the institutional facet for Litecoin, however taking a look at this, it’s fairly spectacular.”

9. Litecoin survived after Lee cashed out

Litecoin was maybe the primary main cryptocurrency to boost the thorny subject of what occurs when a founder cashes out. 

Lee sold his LTC on the finish of 2017, close to the height of the cryptocurrency increase, citing battle of curiosity and different causes. He stated that—even three years later—individuals nonetheless hate on him for promoting out, and a few even blame him for crashing the entire crypto market, which is “ridiculous,” he insists.

“It is sort of human nature for that to occur; I ought to have anticipated it,” he stated ruefully. “Lots of people suppose I give up Litecoin as a result of I’ve no incentives to work on anymore. However it’s sort of the alternative as a result of it is my child, so to talk. It is my legacy.”

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