LITECOIN is currently ranked as the fifth cryptocurrency on the market, it has grown more than 3855.16 percent over the past year and has shot from $4.26 this time last year to a price of $168.49. So why has it experienced this remarkable growth and could it overtake the number one cryptocurrency bitcoin?
Litecoin was founded in 2011, two years after bitcoin was born.
The token is often referred to as the ‘silver to bitcoin’s gold’, as it was launched using the same code as bitcoin and its aim was to improve on the transaction speed of bitcoin.
Instead of using bitcoin’s SHA256 network, Litecoin used scrypt functions which helped to improve transaction speeds.
Bitcoin creates a block of information with data encrypted in 10 minutes, whereas Litecoin does it in two and half minutes per block.
As a cryptocurrency, it is favoured by traders as it is considered to be not as congested as bitcoin and is a lot cheaper as a result.
And experts claim Litecoin has asserted itself as a cryptocurrency which deserves to be in the top five, but does it have the potential to ever overtake bitcoin?
Will Litecoin ever overtake Bitcoin?
Litecoin has experienced remarkable growth this year, increasing in price by 3855.16 percent, compared to bitcoin’s 593.39 percent.
Bitcoin has been plagued by extended transaction speeds as users flood the network – many have said it has become a victim of its own success and has become too congested.
Despite this, experts do not predict Litecoin overtaking bitcoin any time soon.
Bitcoin was the first cryptocurrency on the market so has first advantage and is recognised as a well-know cryptocurrency name, Nicholas Cawley, analyst at Daily FX explained to Express.co.uk.
The number one cryptocurrency managed to garner a critical mass and drew in investors and traders, and Mr Crawley said he does not envisage Litecoin ever outshining bitcoin.
However the analyst also predicts Litecoin will overtake another cryptocurrency this year, which is currently fourth on CoinMarketCap.com.
“I think Litecoin will overtake Bitcoin cash but in market capitalisation terms will struggle to overtake Bitcoin,” Mr Cawley said.
“Bitcoin Cash has just under 17 million tokens in circulation against a maximum of 21 million, while Litecoin has 55.5 million of a maximum 84 million in supply, so if prices remain the same litecoin’s market cap will grow faster than Bitcoin Cash.
“I also like the Litepal payment system and when we eventually see the launch of the Litepay debit card, then I can see Litecoin overtaking Bitcoin Cash.”
Kristjan Dekleva, head of product development at Blocktrade was in agreement and did not forsee Litecoin taking the number one spot on the cryptocurrency market.
Mr Tekleva said: “I don’t believe that Litecoin will overtake bitcoin. Litecoin does its intended job well for certain intents and purposes and has somewhat wide market penetration.
“But one it lacks the name recognition that Bitcoin has, which helps it stay where it is despite its flaws, and two there are numerous other altcoins that do Litecoin’s intended job, quick and cheap transactions, much better.
While Andrei Barysevich, Director of Advanced Collection at Record Future, believes Litecoin has the capability to overtake bitcoin at some point, but not in the current climate.
“Bitcoin is not going anyway, everybody knows about bitcoin, in my view, it is going to remain as a gold standard. People will continue to use and continue to store money in bitcoin,” he said.
“However in day to day operations, I think Litecoin is to become more dominant currency, as soon as we start to see established e-commerce websites accepting Litecoin, that’s the time when i think Litecoin is going to dominate bitcoin cash.”