So Last week I went over Bitcoin and other Crypto Currencies, how to store it, what it was, how transactions work etc.
Today I will go over Litecoin, the lower cost alternative to Bitcoin, some have called it the “Silver” to Bitcoin’s “Gold” while it is not quite correct in that apples to apples comparison, it is apt in many ways.
Most of the basics of Litecoin are all the same as Bitcoin, the algorithm and “framework” is the same as Bitcoin, the designers of Litecoin used it because it has been a proven algorithm and has stood the test of time and attempted hacking attacks.
Litecoin is currently trading at just under $15 a coin with Bitcoin at $541 (after a major hit today when the largest bitcoin exchange in China said it would no longer accept Chinese currency!). Litecoin is produced at exactly 4x the rates of Bitcoin making it more plentiful and cheaper to acquire.
Bitcoin uses what is called a “SHA265″ hash function to mine, while Litecoin uses “scrypt”, this is all very technical, Basically with Litecoin you can build a “mining” rig for under a 1000 dollars while with Bitcoin those types of mining rigs are useless; Litecoin doesnt allow these high grade and expensive machines to work.
When a transaction occurs they are sent to computers to in the network to be verified and put into the “Blockchain” (Public Ledger of the currencies), these blocks of transactions are generated every 10 minutes (average) for Bitcoin while with Litecoin they are generated every 2.5 minutes, this allows for faster transactions or for businesses or people to have the transaction double verified with still less time than Bitcoin.
TOTAL COINS IN CIRCULATION:
4x the amount of Litecoins will come into circulation than Bitcoins, 84 million vs 21million Bitcoins, which means that the monetary inflation rate will pace Bitcoin.
There are some more differences and the ones I listed above have both Pro’s and Con’s associated with them but they into the more technical aspects of the Algorithm and how it works. Needless to say my brief overview is enough to give you a good idea.
I love Litecoin personally, while there are detractors out there they are 99% of the time in two categories, those who dont like crypto currencies or those who are bitcoin religious nuts (Bitcoin, only Bitcoin, All for Bitcoin).
GNP Is getting into Litecoin and while be accepting donations through my Litecoin Wallet ( My address is : LW3D4wnqMBoYFirF7UvC4YR8RFgwnrFe5d )
I am also going to build a Litecoin miner to see if I can and If it works easy, or If its more difficult than I think, I will pass on my findings to you guys.
STAY TUNED FOR MY HOW TO ON LITECOIN MINING.
CHECK OUT AND JOIN THE GREAT NORTHERN PREPPER FORUM, LEARN, DISCUSS AND SHARE!
Want to help support the site? find out more here! Or just click the amazon link below, bookmark it and go there every time you shop on Amazon, it costs you nothing more, but they will kick back a portion of your purchase to the site to help run things smoothly and keep you informed!