Litecoin at large
Many articles have been written about what Litecoin (LTC-USD) is and there are no shortage of regurgitated news, or price speculation on the topic. I’d to take a different angle. If you’re completely new to Litecoin, watch this short video to get a handle on the basics.
Litecoin is a fork of the Bitcoin software, and as such it retains many of the same properties at Bitcoin. Charlie Lee, Litecoin’s founder has used Litecoin on several occasions to front-run new technology before they are implemented on Bitcoin. This was the case with Segregated Witness, which was activated on Litecoin four months before it was activated on Bitcoin. This gave the community time to see, use and understand the implications of the technology before it went live on the Bitcoin network.
Litecoin was never intended to be a replacement for Bitcoin, rather it was meant to be a complement to Bitcoin, which would enable even cheaper fees and faster confirmations, the so-called “silver to Bitcoin’s gold.”
One of the positive things about owning Litecoin, is that if we see another surge in Bitcoin interest before scaling solutions are fully implemented, then the spillover will be a boon to Litecoin. We saw this in 2017, where Litecoin became a desirable alternative to the high fees and slow confirmation of the Bitcoin network.
This leads into an observation of the cryptocurrency market at large. When the market is booming, the rising tide lifts all ships. It seems that as price action drives speculation, smaller cryptocurrencies benefit more than larger ones, and the opposite seems to be true in general for bear markets.
Potential problems for Litecoin
As many have noted already, Charlie Lee sold all his Litecoin. This could be seen as a move to make Litecoin more like Bitcoin without a central figure in the lead. However, it could also be seen as part of a worrying trend, a movement away from effort in the project.