Litecoin, created in October 2011 by former Google engineer Charles Lee is a peer-to-peer cryptocurrency and open source software project which is inspired and nearly identical to the architecture of Bitcoin. The motivation behind its creation was to improve upon bitcoin.
ALL ABOUT LITECOIN
The prices of cryptocurrencies against fiat currencies are determined by anonymous peer-to-peer trades on online exchanges. Unlike mainstream currencies, they are not linked to any government, so their value rests on a system of trust between users. In other words, if people suddenly decide to stop using Litecoins, they will be absolutely worth nothing.
Since first launch, Litecoin – the silver of cryptocurrencies – have enjoyed a gradual appreciation, albeit with a rocky ride at end of 2013. This witnessed a sharp but short-lived artificial appreciation of the currency. The reason was the willy bot. Today and in the past weeks, there is another rallying around the Litecoin. It has once again hit the $50 mark like it did in late 2013 and this time the question is, is the willy bot at work again?
To answer that; I can’t say for sure. But what I know is this, the activation of the upgrade code SegWit (Segregated Witness) and the Lightning Network which effectively allow a greater amount of transactions to be processed by the network in a given time, reducing the potential bottlenecks associated with Bitcoin, has boosted investors confidence on the Litecoin network. This has made Litecoin with an almost zero payment cost, facilitate payments approximately four times faster than Bitcoin.
The result of this saw shares in CipherMine, a company that creates the virtual currency Litecoin, soar by 500% following their initial public offering on June 24 on the virtual stock exchange, LTC Global Exchange. Since launching less than a month ago, the UK-founded CipherMine has achieved a market value of around £500,000 ($744, 500). CipherMine started trading on the Litecoin Global Exchange on June 24 when they sold 10,000 shares at 0.667 Litecoins each. Today, shares are worth around four Litecoins each.
The fortunes of Litecoin has also been further boosted by investments from the Chinese and Korean Corporations (OKCoin and Huobi). The bullshit LTC price momentum can mainly be attributed to the Chinese and Korean traders. This situation has not changed at all compared to a few days ago. It is evident cryptocurrency is booming in both of these countries right now, and demand for Litecoin is steadily increasing. The effects of these trades has caused a continuous rise in the market capitalization of Litecoin to $2,438,733,384 with over $490 million trading volume in 24hrs, a jump from $2,240,766,172 market cap as of the 18th June.
Litecoin enthusiasts are very excited right now, which is to be expected. It is long overdue. As things are finally falling into place for this particular ecosystem, it is still unclear if this new upward trend can be sustained in the long run. If the trading volume continue to stays as high as it is right now, the future definitely looks good for Litecoin.