As you can imagine, the LTC did not become what it is overnight. Its history was written little by little and its journey was strewn with pitfalls. In order to discover how Litecoin became the digital asset we know today, we must look at the different phases of its evolution. This is what we are going together through this post.
The idea of designing Litecoin appeared when some users noticed that the Bitcoin could pose problems in the future because of that slowness to process transactions. At the time, we did not ask ourselves the question of high transaction fees neither of the network congestion, because Bitcoin was not yet what it is today.
To design this crypto-asset, its creator, Charlie lee, was very largely inspired by the Bitcoin code and we could now consider this as a hard fork according to current criteria.
Among the notable differences with Bitcoin, we can note the duration of a block which is only 2.5 minutes on Litecoin (against 10 for BTC), a faster confirmation transactions and lower transaction costs.
The arrival on the market of Litecoin
We can remember the date of October 7, 2011 as being the day of birth of Litecoin because it corresponds to the moment when Charlie lee launched the LTC via a open-source client sure GitHub. However, the Litecoin network will not be fully functional until the October 13, 2011.
Just like the Bitcoin, the Litecoin perform a halving every four years, with a block award also starting at 50 LTC. However, as the blocks are processed 4 times faster, the total supply of Litecoin is four times more important and amounts to 84 million.
The growing popularity of LTC
When it was released, Litecoin was one of the only valid altcoins that was available in the market. As a result, he quickly acquired the reputation “Digital money”, the term “Digital gold” being reserved for his big brother the BTC.
It is difficult to be able to get accurate information on the price of Litecoin because the data of coinmarketcap only go back to April 2013. At that time, the unit price of an LTC token was hovering around $ 4.
The October 31, 2013, the price of LTC had come down to $ 2, to reach the $ 47 the 28 november, less than a month later. This was one of the first pump that the market experienced, accompanied by a loss of 2/3 of its value at the end of the following month. Crypto-investors very quickly realized that the market could be very volatile.
The arrival of competitors
Faced with the arrival of many altcoins on the market, the value of Litecoin dropped to around $ 1.30 in January 2015 because investors then had the choice between a multitude of different projects on which to invest their money.
The value of Litecoin exceeded the 50 dollars for the first time on June 20, 2017, when its technological qualities have been recognized as being superior to those of its competitors. Very quickly he will reach the 100 dollars the November 27, to reach its all-time high on Dec. 19, 2017 by exceeding $ 350.
The December 20, 2017, Charlie lee will announce on Twitter to its over 380,000 followers of the time (we are now approaching million) that he has sold most of its litecoins, supposedly for avoid conflicts of interest.
As it coincided with the highest historical Litecoin, many people accuse him of having manipulated the course to his advantage.
The current situation of LTC
For a long part of its existence, the Litecoin has always been able to stay in the top 5 most capitalized digital assets. Now he has to face the competition from many other cryptocurrencies which this time have other purposes than to serve as a simple means of payment.
Even if on paper the Litecoin outclasses Bitcoin in many aspects, the fact remains that it seems to be Bitcoin which serves as a store of digital values. The other cryptoassets that have taken its place do not have this vocation and it is possible that this is a turning point for the future of Litecoin.
In addition, other competitors have appeared on the market with a much more efficient technology than Litecoin, he who wanted yet filling the gaps in Bitcoin. Litecoin remains however heavily capitalized and has a big community who is very tight.
Conclusion on the history of Litecoin
We hope you enjoyed our article on the history of Litecoin. As you may have noticed, this cryptocurrency has almost always been among the most capitalized since its inception, undoubtedly benefiting from its position as a first mover in the market (apart from Bitcoin).
The history of Litecoin is far from over, on the contrary. However, since it is difficult to predict what tomorrow will bring, any comments we can make on LTC will be pure speculation and therefore we prefer to refrain from doing so.
Therefore, we invite you to come back regularly to consult this article to obtain new information on Litecoin once new pages of its history have been written.
If you enjoy LTC and want to know more about this digital asset, we invite you to consult our Litecoin guides which will deal each time with a very specific aspect of this cryptocurrency.