What Is Litecoin?

  • What is Litecoin?

    Litecoin is a popular cryptocurrency launched in 2011 with open source software under the MIT / X11 license. Litecoin uses a Scrypt-based Proof-of-Work algorithm.

    At the start of the project it was still possible to mine with a GPU graphics card, but at this point in time it would be difficult to get Litecoin with this mining machine. This is due to mining competition with better performing machines. By using ASICs (Application-Specific Integrated Circuit). The performance will be much stronger so that it has greater competitiveness.

    Litecoin is also the peer to peer Internet currency for instant payments with fees of close to zero. Litecoin is an open-source project that is open to the public and is a decentralized cryptocurrency.

    Litecoin offers faster transaction confirmation times and better storage efficiency compared to other cryptocurrencies.

    The significant growth in Litecoin's market capitalization has added a new color alongside Bitcoin and other popular digital currencies.

    Litecoin History

    Who created Litecoin is Charles Lee a Google employee who initiated the invention of Litecoin which was later launched, on October 7, 2011, through the Open-Source client on GitHub.

    Litecoin is generated via Hard fork from the Bitcoin-Qt client, with reduced block discovery time, an increase in the maximum total coins created (Max 84 Million Coins), a maximized GUI, and a different Hashing (PoW / Proof-of-Work), using Script is not SHA-256 or Equishash like Bitcoin.

    In its development history, Litecoin has undergone several version updates, starting from version 0.8.5.1 which was released in November 2013 to version 0.14.2.

    The update aims to reduce transaction costs, perform better security code upgrades, improved configuration, and the Heartbleed security bug patch.

    Litecoin is designed to work on all systems such as Microsoft Windows, Mac OS X, and Linux. until the mobile version.

    With this option, users can make transactions easily using supported devices.

    What is scrypt?

    Scrypt is an algorithm used on Litecoin by means of encryption which uses a large volume of memory and takes a lot of time to select.

    The Scrypt algorithm is applied to cryptocurrency mining, for specialized ASIC miners.

    Litecoin Open-Source project

    Citing from Litecoin.org, Litecoin is an Open Source software project released under the MIT / X11 license that gives developers access to run, modify, and copy software and distribute it as needed.

    The Litecoin software is released in a transparent process that allows independent binary verification.

    Thus Litecoin is an open platform that anyone can develop for their purposes.

    Users can create applications with Litecoin as the transaction medium.

    Basic Difference Litecoin vs Bitcoin

    There are several prominent Litecoin and Bitcoin differences, namely:

    • The process of producing blocks faster. If on Bitcoin, the time needed to produce a block is 10 minutes, unlike the case with Litecoin which only takes about 2.5 minutes for each block created.

    • Faster Transaction Time. Because the process of generating blocks is created 4 times faster than Bitcoin, automatically the transaction verification speed is also 4 times faster.

    Litecoin advantages and disadvantages (LTC)

    Let's look at the advantages of litecoin first:

    • Compared to Bitcoin, Litecoin offers up to four times faster working speeds than Bitcoin Where is 10 minutes for BTC, and 2.5 minutes for LTC.

    • It has an open-source code.

    • The basis of the work is the Scrypt algorithm.

    • Transactions have a minimum commission.

    Disadvantage Litecoin, if the Litecoin risk will occur if the market has no interest.

    Several reasons state that the ease of mining Litecoin allows the buildup of Litecoin in circulation in the market, and In the long term, if it is not able to grow, then it may experience inflation drastically.

    What is the secret of Litecoin growth?

    The increase in cryptocurrency is often related to Bitcoin, the decline in demand for Bitcoin cryptocurrency often occurs in other digital currencies including Litecoin.

    However, Litecoin's growth could also be due to faster transaction speeds and lower fees, making it particularly suitable for e-commerce and online payment systems.

    From historical data on changes in the price of Litecoin in the past in early 2017, it was trading at a price of around $ 3.52. Like Bitcoin soaring high, Litecoin shares a similarity when from 2017 to November, the Litecoin price has touched an all-time high of $ 320.

    The drastic surge in prices has given early investors high returns on buying at low prices.

    From the comparison above, we can see that Litecoin (LTC) growth is also very fantastic, but in general, people always see the growth of a currency seen from the exchange rate to other currencies.

    Cifsoft game operates in the Litecoin blockchain 

    In 2020 the growth in Litecoin users has expanded to the world of gaming. Germany's leading gaming company, Cifsoft has launched Games where users can earn Litecoin.

    The game is Litebinger, to find out if it is a game you can visit the Litebinger.com site.

    LiteBringer Game is a game similar to CipSoft Tibia's first game involving fantasy characters, difficult missions, and prizes.

    This game is very challenging for gamers to play a role with the initial steps of making a character to start with.

    In-game participants can store weapons, characters, and transfer to other players with the Litecoin blockchain.

    All gaming activity is a transaction on the Litecoin blockchain which allows players to earn LTC.

    Litebinger can pioneer another new game by using the Litecoin Blockchain. This was revealed by Charlie Lee, the creator of Litecoin.

    He praised CipSoft's move as one of the pioneers of online games developing the Litecoin blockchain technology.

    Litecoin Foundation has tweeted about this game on 16 September 2020.

    Ulrich Schlott, who is a product manager and founder of CipSoft, believes that the potential of blockchain technology can revolutionize the game, allowing players to not just play games but earn digital currency Litecoin which can turn into real money.

    To support that goal the game company gives all the "power" to the players that make LiteBringer "thrilling."

    The following video shows the trailer of the LiteBringer game.

    https://youtu.be/pkRpClt5z8s

    Previously there have been several games that use blockchains such as Crypto Kitties on the Ethereum blockchain, Megacryptopolis, and others.

    Litecoin price analysis 2020

    Litecoin still has to fight hard in 2020, to be able to win the competition with other popular cryptocurrencies.

    Changes in demand for a cryptocurrency can shift the position of coins that are in the top five down to the rank below.

    Litecoin is currently amid a collision between crypto.com coin and Cardano, with Litecoin being ranked 10th based on the coinmarketcap ranking.

    The emergence of Polkadot can Chainlink has given color to the competition between cryptocurrencies increasingly competitive to get a wider market.

    In previous years Polkadot and Chainlink have not yet entered the top 10, but it seems that the development of this digital currency is quite surprising because it has brought Litecoin down to rank 10.

    The first digital currency pioneer Bitcoin still ranks first followed by Ethereum, Tether then Ripple, Bitcoin cash, Polkadot, Chainlink.

    The launch of the Litebinger Game in 2020 is good news for Litecoin, whether because this game can push Litecoin's competitive value back up the rankings, this cannot be predicted because the game launch is still new.

    However, based on the analysis of market sentiment, it still provides a positive boost.

    This is cited from data released by Santiment, which reveals that Litcoin shows a 3-month high based on differences in address activity with current price levels.

    Litecoin need to struggle in the top cryptocurrency

    In the past, Litecoin was one of the cryptocurrencies that were believed to be able to replace Bitcoin with a design that offered better transaction speeds than Bitcoin.

    I like Bitcoin because the highest value of Litecoin occurred in 2017 where Litecoin reached the price level of $ 313. However, after the bubble in all cryptocurrencies, the price of Litecoin fell to $ 26 by the end of 2018.

    After bottoming out Litecoin has struggled to get a response from the market and managed to bring the price up again in 2019 to a high of $ 135.

    However, the pace did not go smoothly, and the value of Litecoin again gradually depreciated and reached $ 39 at the end of December 2019.

    Since May 2020 the value of Litecoin has fluctuated again against the USDT, reaching its lowest level on May 10 in the $ 30 range. It seems that at this level some investors dare to push prices back up and a Pin bar candlestick is formed as an indication of a trend reversal.

    However, it turns out that the movement is sideways which is indicated by the MACD Histogram which forms a short pattern between the zero levels. During this sideways period price movements were in the range between $ 50 and $ 37.

    In July, the sideways condition was over and the price moved up again and reached its August high around $ 68.

    However, it turned out that the impulse did not cause prices to spike any higher. The fluctuation occurred again and brought September's Litecoin at $ 46.

    Litecoin amid pandemic

    The pandemic has affected all kinds of industries, Litecoin is no exception.

    The price spike has occurred amidst the pandemic in July, it seems that the market panic has caused investors to try to find safe assets.

    This may be the reason why Litecoin went up in price, but instead, it was used to take profit so that the price started falling again.

    It is ranked 10th with a market capitalization of $3,021,923,270, currently, Litecoin's position is prone to be thrown out of the top ten cryptocurrencies.

    But will Litecoin's news about the MimbleWimble privacy protocol on 4 May 2020 be able to drive Litecoin's price back up?

    If analyzed, it does not have a significant impact except for a temporary impact. Another Litecoin news is about the Litecoin Grayscale trust going public.

    Litecoin technical short term price analysis

    Currently, based on the MACD histogram 4H chart, Litecoin is in a downtrend because the MACD histogram is at the zero levels.

    However, there is a cross between the MACD line and the signal line from the bottom up, this is a buy signal in theory.

    Price movements on Litecoin are often correlated with changes in Bitcoin, this has its advantages and disadvantages for traders.

    Litecoin is currently showing a value of $ 46, in theory by looking at the MACD trend is still bearish, but it looks like the buying pressure has started to increase.

    The price movement may reach the 1st resistance level in the $ 50 area. In case of a breakdown of these levels, it is expected that the movement can reach the next resistance level at $ 55.

    While the RSI also indicates a bearish movement which is indicated by the RSI which is on the 42 scales, but if the buyer's pressure increases, it is possible to cross the 50 levels and change the situation from bearish to bullish.

    Conclusion

    Litecoin is still struggling this year to avoid dropping out of the top ten rankings, as increasingly intense altcoin competition has forced Litecoin to drop to the top ten of the Coinmarketcap ranking.

    But hope is still there, with the launch of a game quest that uses Litecoin Blockchain as its appeal.

    Maybe you have remembered about the Crypto Kitties game which caused the Ethereum network to go down, if the interest in this game of Litebinger increases, it will allow the trading volume to increase.