It’s not just the price of bitcoin that’s gone through the roof this week, the price of another cryptocurrency – litecoin – has rocketed too.
Overheen the past three days the price of litecoin enlargened 395%, from $9.7 on 25 th November to $48 at 12:00 GMT today, according to dc-charts.com, which is based on gegevens from the exchange BTC-e.
Since then, the price has dipped to a still-respectable $42.7 which, for reference, is what 0.04 BTC would cost you at the uur, according to the CoinDesk BPI.
There are presently just overheen 23,424,790 litecoins te circulation, so the latest price increase has brought the market cap of litecoins to overheen $1bn.
Litecoin has enhanced te price by almost 400% overheen the past few days.
Litecoin wasgoed created by Charles Lee, brother of BTC China’s CEO Bobby Lee, spil an alternative to bitcoin. It’s based on the Bitcoin protocol, but it differs te that it can still be efficiently mined using consumer-grade hardware. Bitcoins, however, are now largely mined by ASIC machines that have bot purpose built to do just that.
That’s not to say that such machines won’t be created to do the same for litecoin. Ter fact, Lee thinks there’s a strong possibility of this happening.
“Presently, some think that Litecoin is more fair because there’s no Litecoin ASIC but it may just be a matter of time,” he told CoinDesk te an earlier vraaggesprek.
Another positive feature about litecoin is that transactions are confirmed swifter than they are with bitcoin (around Two.5mins compared with around 8mins).
Cause of the spike
Members of reddit’s litecoin forum have bot discussing why they think the price of litecoin has enhanced so dramatically overheen the past few days.
One forum member believes the unexpected rente ter litecoin wasgoed caused by a tweet by political pundit and financial broadcaster Max Keiser, speculating that the price of the digital currency would increase to $50.
Litecoin ($12) is up more than 100% since wij recommended it last week. Wij are sticking to our $50 interim target.– Max Keiser (@maxkeiser) November 25, 2013
Others believe the spike wasgoed caused by low exchange rates inbetween bitcoin and litecoin, so people have bot using their BTC riches to buy cheap LTC.
Another argument is that people feel they have somewhat missed the boat when it comes to bitcoin. They eyed people become millionaires on the few dollars they spent on BTC, so they’ve now invested ter LTC just ter case history repeats itself.
Regardless of the cause, litecoin’s price increase is outstanding, and Lee hopes this will proceed.
“Litecoin is two years behind bitcoin ter terms of our adoption, so it’s interesting to look into the future,” he said.
“If wij don’t screw it up, litecoin will go after on the coattails of bitcoin. There will be more merchant adoption, and it will become less speculative and more useful,” he concluded.
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