Litecoin Litecoin Litecoin

Litecoin - a duplicate

Cryptocurrencies - Learn more
Mads Eberhardt

Cryptocurrency Analyst

Summary:  Litecoin was created as a duplicate of Bitcoin. Thereby, the cryptocurrencies shares many similarities like finite supply and close to identical consensus mechanism to verify transactions. A few changes have, however, made Litecoin able to process slightly more transactions and opened its network for smaller miners.


Litecoin (LTC) is a decentralized globally distributed cryptocurrency and counts as one of the oldest cryptocurrencies after Bitcoin. The cryptocurrency was launched in October 2011 by the former Google engineer Charles Lee. In December 2017, Charlie Lee sold his entire Litecoin portfolio and allegedly donated the funds to charity. Charles Lee has since explained that Litecoin was mainly a side project intended to be a duplicate of Bitcoin. As a result, there are many direct similarities between the two cryptocurrencies. The two cryptocurrencies use the same method to verify transactions on their blockchain through mining, known as proof-of-work – see intro for Bitcoin for more on this. The most fundamental technical difference between Litecoin and Bitcoin is the difference in the cryptographic algorithms they apply, due to Litecoin’s vision of making mining more easily accessible for interested miners. Technically, it is both cheaper and easier to mine Litecoins, thereby increasing the potential number of people to assist with verifying transactions and keeping the network safe.

A finite supply as for Bitcoin

Litecoin’s total supply is four times the one of Bitcoin at 84 million Litecoins compared to Bitcoin’s 21 million. There are currently more than 66 million Litecoins in circulation. Even though the total supply is fixed, Litecoin has never been acknowledged for this scarcity but has mainly been acknowledged for improved scalability and faster transaction speed. Litecoin can handle slightly more than 50 transactions per second, even though Litecoin has never been near that limit daily.

As Litecoin’s block time is four times less than the block time of Bitcoin, new Litecoins are being added to the supply every 2.5 minutes. This makes the transaction speed approximately 4 times faster than Bitcoin’s. Miners are getting rewarded both the newly mined Litecoins together with the transaction fees paid by users. Similar to Bitcoin, the block reward for Litecoin is halved every fourth year until the total supply is hit. This event is called Litecoin halving. The latest halving occurred in August 2019 with the next halving expected to occur in August 2023, on which day the reward will be reduced to 6.25 LTC from the current reward of 12.5 LTC. At the time of writing, it is expected that it will take at least 120 years before every Litecoin has been mined.

Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.