Are Litecoins The Next Big Thing?

Are Litecoins The Next Big Thing? | litecoin | Economy Economy & Business

If the Winklevoss attempt to launch a Bitcoin ETF has made investing in this virtual currency a little too mainstream for your taste, there is no need to worry. The crypto community has it covered and is pumping up the next new thing: Litecoins.

Shares in CipherMine, a company that creates virtual currency Litecoin, soared 500% following their initial public offering on June 24 on a virtual stock exchange, LTC Global Exchange. Since launching less than a month ago, the UK-founded CipherMine has achieved a market value of around £500,000 ($744, 500).

CipherMine says its stellar debut is a sign that while Bitcoins are grabbing headlines, Litecoins are gaining traction.

But what exactly are Litecoins and how different are they from Bitcoins?

Like Bitcoins, Litecoins are a virtual currency created online through a process known as “mining”.

Programers and companies such as CipherMine run software programs on high-powered computer systems to find new combinations of words and numbers that will unlock new coins. The number of coins that can be mined is capped at 21 million Bitcoins and 84 million Litecoins.

Kate Craig-Wood, CipherMine’s founder, explained: “It is because of this larger number that Litecoin is often billed as ‘silver’ compared to bitcoin’s ‘gold’.”

Prices of Litecoins against fiat currencies are determined by anonymous peer-to-peer trades on online exchanges. Unlike mainstream currencies, however, they are not linked to any government, so their value rests on a trust system between users. In other words, if people suddenly decide to stop using Litecoins, they will be worth absolutely nothing.

Currently, one Litecoin is worth around $2.70. By contrast, after rising to a high of $260 in April (and falling over 60% in a day), Bitcoins are now worth $90 each.

Just like Bitcoins, Litecoins are stored in virtual wallets and can be used for purchases online. Unlike their more popular older sister, however, fewer physical businesses accept them as a form of payment. So while Bitcoins will buy you a beer in select pubs in East London, it might be trickier to pay for a drink in Litecoins.

CipherMine started trading on the Litecoin Global Exchange on June 24 when 10,000 shares sold at 0.667 Litecoins each. Shares are today worth around four Litecoins each.


Read more over at Financial News.


[mailpoet_form id="1"]

About The Author

The Sleuth Journal is an independent alternative media organization comprised of individuals and groups working to shed the light on truth in government, politics, world and local news, civil liberties, natural health and medicine and other important topics that the mainstream media fails or refuses to expose. This information is being presented to you in an effort for advancement in the understanding of our economic and political corruption and the New World Order. It is our intent to connect, educate, motivate and inspire those who are interested in alerting our fellow humans to the pertinent issues that are affecting our lives and future, each and every day. We are a community of truth-seekers and who share a commitment to action and resistance- to push back against those who wish to suppress and control our lives and take away our God-given freedoms and civil liberties. We bring you real news from around the world, without the synthetics. Together in sharing the truth, we can challenge the abuses of the establishment.

Related posts