Litecoin is one of the top ten cryptocurrencies that are worth investing in. Currently, it is ranked as number 9 among cryptocurrencies and has a now a total market cap of $17,122,132,230.
Litecoin (LTC) was created by Charles “Charlie” Lee in 2011 as an alternative to Bitcoin. Lee never intended to overthrow bitcoin from the start but rather he wants the altcoin to be the silver to bitcoin’s gold.
Before we delve more into stories about Litecoin, let us first look at the story of the person behind its invention, Charles “Charlie” Lee.
Charlie Lee is a computer scientist who created Litecoin. He was born and raised in the Ivory Coast. His family moved to the United States when he was 13. He finished high school in 1995 and attended his college at MIT. He graduated from college in 2000 and earned his bachelor’s and master’s degrees in computer science.
Immediately after his graduation, he started working with tech companies which include Google. While working with Google, he started the concept of Litecoin. During his work stint with the tech company, he was involved in huge projects like Youtube Mobile and Chrome OS. In 2011, he came across an article about bitcoin while reading an article about Silk Road. His interest to trade in gold became his turning point and after his efforts became futile, he decided to turn to bitcoin and blockchain.
With a group of other bitcoin adopters, Lee started exploring mining. Mike Hearn worked on the core blockchain client software for bitcoin became an acquaintance. Their conversation has further fueled Lee’s interest in developing his own digital currency.
Lee’s Journey to Creating Litecoin
Finally, in 2011, Lee developed his first cryptocurrency, Fairbix. It was modeled after bitcoin and Tenebrix. Unfortunately, Fairbrix was a failed project mainly due to pre-mining issues and software bugs making it a risk for 51% attack.
After the failure of his first project, Lee released Litecoin. It was solely modeled with bitcoin but with some adjustments like the hashing protocol, transaction time for blocks, and the total maximum supply cap value. For Lee, litecoin was an alternative and not a competitor of bitcoin.
LTC (Litecoin) just like BTC (bitcoin) is being used as an online payment system. In fact, the altcoin was created as a lite version of bitcoin. Since it utilizes Scrypt, it can be mined using computer hardware like CPUs or GPU. With litecoin mining, a new block is mined every 2.5 minutes – four times faster than bitcoin. This allows Litecoin to confirm transactions faster. Whereas in bitcoin, it takes 10 minutes to mine one Bitcoin using ASIC mining hardware.
In 2013, he started working with Coinbase after it adopted Litecoin. But in 2017, he left the company to dedicated more time to his cryptocurrency. But happily ever after does not exist even in the crypto world. In December 2017, Lee sold all his stake in LTC (litecoin). His move resulted in a 50% drop in the price of the altcoin. But what was the reason behind it? But did he dump his precious crypto to which he dedicated so much of his time?
The Reason Behind Charlie’s Exodus
In December 2017, he revealed in his Reddit post the real reason behind his action.
“I get accused of doing it for personal benefit. Some people even think I short LTC! So in a sense, it is [a] conflict of interest for me to hold LTC and tweet about it because I have so much influence. For this reason, in the past days, I have sold and donated all my LTC.”
He even admitted that he didn’t have much Litecoin on his portfolio. He further added that his action doesn’t have a significant effect on the market.
“My selling Litecoins didn’t actually affect the market itself but the fact that I had Litecoins and people were thinking that I might dump it on the market actually was an issue.”
But this is not the first time that we have heard creators leaving their cryptos. Creators Jayson Palmer and Billy Markus left the Dogecoin which was later taken over by the community.
But unlike the duo, Lee reportedly had regrets about selling his Litecoin holdings. In his Youtube interview with exX co-founder Julian Hosp, he stated :
“I still think it was the right move but I question whether…I think in the long run it was the right move, but in the short term while the price is down, below the all-time high, it just feels like it’s not the right decision. But I think like, moving forward, five years down the road, when the price is back to the all-time high, then I would feel like it will be the right move.”
Today, litecoin is one of the most listed altcoins in major exchanges and other crypto businesses. It is widely supported by investors worldwide with a strong following from its advocates. One of them which was John Kim which was already featured in one of our articles. He went as far as convincing bars and restaurants in the US to adopt LTC (Litecoin) as payment. He even involved himself in expanding litecoin’s market to Asia and has received some help from a travel agency and crypto exchange, OKEx.
In 2013, LTC (litecoin) price was merely at $2 but today LTC (litecoin) is now at $ 257. Its current price may still be a bit short as compared to its recorded all-time high at $371 in December 2017. But with its massive adoption, it will surely go up. It is predicted to go up as high as $600 this year and if it happens, this will result in a 133% increase in its price.