Will Other Cryptocurrencies Rise Like Bitcoin: Understanding Litecoin & Ethereum
If you are familiar with the cryptocurrency currently taking over the world, Bitcoin, then you may be wondering will other cryptocurrencies, like Litecoin and Ethereum, rise like Bitcoin?
There is a possibility that cryptocurrencies like Litecoin and Ethereum will provide Bitcoin with fierce competition in the coming years. In March and April of 2021, Litecoin saw an increase of almost 60 percent in just 17 days. With an upgrade coming for Ethereum, it is projected to take off in 2022 and beyond. However, to understand how cryptocurrencies work, you must understand their differences.
Understanding Litecoin
What is Litecoin? Litecoin (LTC) is a cryptocurrency created by Charlie Lee, an ex-Google employee and former Engineering Director at Coinbase, in October of 2011. It was created to function as a complementary peer-to-peer network to Bitcoin. Litecoin’s function was to improve upon Bitcoin’s heavily saturated mining pools and make cryptocurrency more accessible.
Litecoin was created to be the “silver to Bitcoin gold”; however, Litecoin has a superior algorithm compared to Bitcoin. In addition, Litecoin processes faster has improved capacity, faster block generation, and higher supply limits. However, it seems unlikely that Litecoin will ever have the economic and consumer explosion that Bitcoin has sustained for a decade. This is because Litecoin’s history has been full of ups and downs and primarily substantial downs.
Litecoin is based on the same blockchain and verification method as Bitcoin; however, there are many differences. Bitcoin and Litecoin use different algorithms, and Litecoin uses Scrypt. These are their hashing functions which encrypt their blockchains. As a result, Litecoin can produce more coins than Bitcoin. However, Bitcoins market cap is much higher than Litcoin’s.
LITECOIN IS NO BITCOIN
When Litecoin was first launched in 2011, it sold for around $3 until the fall of 2013, where its price nearly doubled overnight to $50 per coin. However, that price rise was short-lived. Litecoin sold at $1-$10 for the next three years in the years to follow.
In March of 2017, Litecoin began implementing fancy protocol upgrades that attracted attention from cryptocurrency enthusiasts and newbies. The SegWit upgrade reduces the size needed to store transactions in a blockchain. This upgrade raised the price of Litecoin to $30 per coin, making one of the top five cryptocurrencies. The next upgrade is known as the Lightning Network, which allows two parties to make transactions faster for less cost with a higher rate of approval than going through a blockchain. This upgrade made Litecoin competitive with Bitcoin, raised the price to $70, and eventually peaked at an all-time high of $375!
Although Litecoin is not projected to grow significantly in the near future, it could take off at some point in the next five years, making now a great time to invest in cryptocurrency. While Bitcoin continues to grow, it is expected that some of Bitcoin’s users will venture into using Litecoin. Litecoin is in the top 10 of all cryptocurrencies and is predicted to stay there for quite some time.
Understanding Ethereum
What is Ethereum? Ethereum (ETH) is a cryptocurrency that is very different from other cryptocurrencies like Bitcoin and Litecoin. Technically, Ethereum is a decentralized software platform that can only be used with its cryptocurrency called Ether. It is also a programming language that allows applications to be developed with fraud, controls, or interference from the government or other third parties.
To use the platform, you must use the Ethereum cryptocurrency, Ether. It uses a vessel to move around the platform, create applications, make transactions or trades of other cryptocurrencies. Because of Ether’s dual purposes, as both a digital currency and a key to using the Ethereum platform, it stands out from other cryptocurrencies like Bitcoin and Litecoin.
It can be confusing when comparing Ethereum to Bitcoin. However, both cryptocurrencies use blockchain technology to create their value layer. Bitcoin’s technology is only for payments and scarcity, while Ethereum replaces traditional financial functions with code by adding a computer to the value layer. Bitcoin inspired the invention of Ethereum and built upon the functionality of Bitcoin. Bitcoin serves one value function, whereas Ethereum has unlimited potential due to its blockchain network. The main difference between Bitcoin and Ethereum is that Bitcoin is a cryptocurrency, and Ethereum is a platform, with Ether being the token on Ethereum’s blockchain. Transactions can be completed much faster on the Ethereum network. Additionally, Ethereum was created to complement Bitcoin, not compete with it.
ETHEREUM SET TO EXPLODE
Ethereum was launched in 2015 and is now the second most popular digital currency behind Bitcoin. The idea of Ethereum was born in 2013 by Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine. He thought that Bitcoin was missing a scripting language for developers to build applications. After proposing this idea to Bitcoin and being ignored, he created his platform with a scripting language. A public crowdfunding funded the platform's development by purchasing Ether with Bitcoin.
Unlike other cryptocurrencies, new Ether supply can be created. There are currently 112 million Ether circulating the market, priced at $475 per Ether. Because Ether is a relatively new cryptocurrency with little price history, its lows don't mean much. However, Ether has not reached its all-time low since its debut. Its price peak in 2018 was $1,448—the possibility of Ether rising like Bitcoin is a likely possibility. Many cryptocurrency experts predict Ether to skyrocket much quicker than its competitor Bitcoin.
Early investors in Ethereum have nearly quadrupled their investments since 2014. Experts predict that Ethereum will reach $4,000 in 2022, with some saying it could end 2022 at over $6,500. Due to Ethereum having over 90% of the market of non-fungible tokens, 2022 will be an essential year for cryptocurrency. In addition, many experts are optimistic about the future of Ethereum due to its versatility and see it continuing to grow.
The upcoming Ethereum 2.0 upgrade has sparked interest among cryptocurrency enthusiasts. It will allow the platform to support thousands of transactions per second, make the buying and selling of Ether more secure, and make the platform more environmentally sustainable.
Cryptocurrency Is Rising Everywhere
As the internet becomes more accessible and democratized worldwide, cryptocurrencies of all forms will see a gigantic rise in transactions and price. When cryptocurrency was first created, it was understood and accessible to very few people. However, cryptocurrency is used now across the world and virtually everywhere online. As a result, Litecoin, Ethereum, and Bitcoin are bound to be essential tools for the future.
These forms of cryptocurrency are slowly making their way into becoming a mainstream form of currency. With more and more ways to access these cryptocurrencies, turning cash into crypto is becoming as easy as going to the bank.
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