Cryptocurrency Analysis: Litecoin in IT 2 Course Report

This report provides an in-depth analysis of Litecoin, a peer-to-peer cryptocurrency. It explores Litecoin's operational mechanisms, including its use of blockchain technology, mining processes, and transaction speeds compared to Bitcoin. The report highlights the advantages of Litecoin as a short-term and long-term investment, such as high trading volume and full-time leadership. Furthermore, it discusses the future of Litecoin, referencing its technological advancements like Segwit and atomic swaps, along with price predictions. The analysis concludes with a positive outlook, emphasizing Litecoin's potential as a standard digital currency, with rising value and a strong market position. The report also includes references to relevant sources for further research.

Running Head: IT 0
COMPUTING

IT 1
Litecoin
Cryptocurrency is an encrypted virtual currency, exchanged, created and used by private
individuals or groups. Essentially, crypto currencies are limited entries in a database that no
one can alter except particular situations and settings are met. In relation to working of
cryptocurrency, it allows individuals to store money and make secure payments deprived of
need to use their name and they operate on dispersed public ledger known as blockchain,
which is a cluster of all transactions updated and apprehended by currency owners (Engle,
2015).
One of the peer-to-peer cryptocurrency is Litecoin and is most alike in form to Bitcoin,
however, has taken further development and innovations benefitting in faster payments and
processes and allowing greater number of transactions. Like all crypto currencies, Litecoin is
not issued by the government, instead, being regulated by a Federal Reserve. A block is
generated by Litecoin network verified by mining software and made visible to any “miner”
who seeks to see it. After verification made by the miner, the next block enters the chain,
which is a record of every Litecoin transaction ever made. 2.5 minutes is the average block
mining speed in Litecoin when matched to Bitcoin 10 (Zhao, 2019). Litecoin is also
conceived to act like pure digital money and it also permits prompt, near-zero cost outlays to
anybody globally.
Litecoin as a short term investment has various advantages such as high trading volume and
this makes it’s a popular choice for investors. If a cryptocurrency has a high trading volume,
it signifies that it will have no issues finding buyers to sell to. Listed on coinbase is another
advantage as coinbase process more cryptocurrency transactions in comparison with any
other exchange. In terms of long term investment, there is full time leadership as it creator i.e.
Charlie Lee now works on the project full time (bitdegree.org, 2020). In addition, Litecoin
also helps in protecting oneself from short time price movements if one is looking for a long
term Litecoin investment.
In relation with the future of Litecoin, the currency was at the lead of contemporary and
pertinent technologies and in 2017, it measures a surge of success taking gain of the rising
number of concerned investors and as regards the Litecoin price forecast 2030 by
CoinPriceForecast.com, the coin is projected to end the subsequent decade at $251.44

IT 2
(Medleva, 2019). With this dramatic rise, Litecoin represents is far more valuable while being
envisioned as Bitcoin younger brother, though its purpose has grown far more than that.
Taking an example, Litecoin was one of the first to deploy Segwit and they also positively
tested out atomic swaps. Furthermore, they are keenly looking to join lightning network into
their system. As crypto currencies become more readily accepted and their values stabilize,
there will be emergence as the standard currencies – possibly including Litecoin in the digital
realm. Hence, considering it all, there is a blown future in case of Litecoin with rising in its
value is certainly well-gained.

IT 3
References
bitdegree.org. (2020) Should I Buy Litecoin – Is Litecoin a Good Investment? [ONLINE]
Available from: https://www.bitdegree.org/tutorials/should-i-buy-litecoin/ [Accessed
13/03/2020].
Engle, E. (2015) Is bitcoin rat poison: Cryptocurrency, crime, and counterfeiting (CCC). J.
High Tech. L., 16(1), p.340.
Medleva, V. (2019) Litecoin price prediction 2020: can it become the best-performing
altcoin of the coming decade [ONLINE] Available from: https://capital.com/litecoin-price-
prediction-2020 [Accessed 13/03/2020].
Zhao, W. (2019) Litecoin’s Mining Power Has Fallen 28% Since Its Halving [ONLINE]
Available from: https://www.coindesk.com/litecoin-mining-power-has-fallen-28-since-block-
rewards-halving [Accessed 13/03/2020].