Litecoin Outperforms Bitcoin In Terms of Growth Rate
Litecoin, the fourth biggest virtual currency in terms of market capitalization, has recently outperformed Bitcoin so far when it comes to growth.
Since the beginning of the year, Litecoin has registered a 7,291% increase compared to Bitcoin’s 1,731% and has recently reached a market cap of $15 billion.
There are possible reasons behind the sharp hike in the price of Litecoin. Among them are the recent surge in the popularity of virtual currencies as attractive investments and the search by investors of other investment opportunities in the belief that Bitcoin’s price has already reached its peak.
The addition by cryptocurrency exchange Coinbase of Litecoin as among its accepted digital currencies could also contributed to the token’s rise.
Litecoin is one of the digital currencies that were developed based on the leading and original virtual currency Bitcoin. In late 2011, Litecoin developer Charlie Lee “forked” off the Bitcoin ledger to create the cryptocurrency. Lee has designed Litecoin as a faster and more lightweight version of Bitcoin.
In his presentation at Coinbase in March 2017, Lee shared that his goal for Litecoin has always been to complement rather than compete against Bitcoin.
“The vision is always I wanted Litecoin to complement bitcoin—not compete. Bitcoin can be used for like moving millions of dollars between banks, buying houses, buying cars. It’s really secure… Litecoin can be used for cheaper things.”
Lee has also increased the maximum number of Litecoin tokens to be mined to 84 million, which is fourfold higher than that of Bitcoin which is at 21 million. The purpose is that Litecoin will be more attractive as a payment tool for consumers who want to buy small-ticket items.
Ok, sorry to spoil the party, but I need to reign in the excitement a bit…
Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had where LTC dropped 90% in value ($48 to $4). So if you can't handle LTC dropping to $20, don't buy! ?
— Charlie Lee [LTC] (@SatoshiLite) December 11, 2017
Despite the popularity of Litecoin, Lee has warned potential Litecoin buyers in his Twitter post on December 12, 2017.
In his tweet, Lee cautions that he expects a multi-year bear market for Litecoin and investors should be aware of such volatility.