As the name suggests, Litecoin was designed to be a lighter version of Bitcoin. Whereas BTC is a store of value, LTC is meant to be the sound money that people will use for everyday payments
⛓How Does Litecoin Work?⛓
Litecoin is basically like Bitcoin with a few modifications. For starters, instead of the SHA-256 proof of work consensus mechanism, Litecoin uses a special proof of work consensus mechanism called Scrypt
One little-known fact about Litecoin is that DOGE is merge mined with LTC. Without getting into the weeds, merge mining makes it possible to mine two cryptocurrencies without using any extra power
💸Litecoin Tokenomics💸
Like Bitcoin, Litecoin has a 4-year halving cycle, meaning the amount of LTC miners get from each block is cut in half. When the first Litecoin block was mined, the reward was 50 LTC
The first halving occurred in August 2015, cutting the block reward to 25 LTC. The second Litecoin halving happened in August 2019, which was cut in half again to 12.5 LTC
The next Litecoin halving is scheduled to take place in August 2023, and though some websites suggest this reduction in supply is the driver behind LTC’s price action, LTC remains highly correlated to BTC
👨💻Litecoin Privacy👨💻
In contrast to privacy coins like Grin, privacy will be optional on the Litecoin blockchain. This will be possible thanks to another technology called ‘extension blocks’
If you want your Litecoin transactions to be private, you can send your LTC to the Mimblewimble extension chain that runs parallel to the Litecoin blockchain and transact on it instead
📈LTC Price Analysis📈
LTC has seen a lot of investment from both retail traders on apps like PayPal, Robinhood, and Revolut. A lot of institutional money has been flowing into LTC via Grayscale’s Litecoin trust, and various LTC ETPs
🤑LTC Price Potential🤑
If you’re wondering how high LTC could go, this really depends on BTC. If BTC pulls a 2 or 3x, I reckon we would eventually see a similar move for most large cap alts including LTC. This works out to about 1k
