Litecoin is a peer-to-peer open source software project and cryptocurrency. One of the most appealing aspects of the technology is that it is not maintained by any central authority. Litecoin allows the user to send instant payments to anyone, anywhere on the globe with almost no cost. The network is secured through the power of cryptography, and it features faster confirmation times and superior storage capacity compared to other math-based currencies.
Litecoin was released in 2011 by Charlie Lee. The network is a fork of the Bitcoin Core client, but has some key differences including a lower block generation period and larger number of coins. By late 2017, the total market capitalization of Litecoin was over $4.5 billion, with Litecoin prices exceeding $300/unit. The Litecoin network is set to produce 84 million litecoins throughout the year.
Litecoin and other cryptocurrencies are only in the beginning stages of acceptance. Although some merchants already accept Litecoin as a form of payment, the network is still somewhat limited. This is likely to change, however, as the cryptocurrency movement gains further traction.
One of the biggest questions on people’s’ minds is whether or not Litecoin and other cryptocurrencies are here to stay, and if they will in fact become far more mainstream than they are today. Although this remains to be seen, Litecoin and other digital currencies do potentially provide a number of key benefits that will likely continue to boost their popularity.
Some of the major benefits include overall convenience, instant transactions, low cost and the ability to easily send payments anywhere on the globe. Cryptocurrencies, unlike paper currencies, cannot be created out of thin air. The limited number of litecoins that will be available may potentially help ensure that they retain their value, and do not see significant declines due to oversupply or inflation. Due to the laws of supply and demand, if demand for such currencies increases, the limited supply of them could potentially fuel substantially higher prices.
Litecoins can be purchased by going to a number of various cryptocurrency exchanges or a platform such as Coinbase. Once you have purchased litecoins, you can keep them at the exchange or move them to a wallet. The process is simple and convenient.
Litecoin and other cryptocurrencies have attracted the attention not only of end-users, but also speculators and investors as well. For those who are looking to invest in Litecoin for the long-term, a Litecoin IRA may be worth considering.
A Litecoin IRA is a self-directed IRA account that allows the holder to purchase non-traditional asset classes, in this case litecoins. An IRA of this type can have numerous possible advantages including a lower tax bill, tax-deferred growth and flexibility. Litecoins can be bought or more actively trade within a Litecoin IRA, and any gains are non-taxable until distributions are made provided that all required rules and regulations have been adhered to.
While a Litecoin IRA may have several advantages, it is also important to keep in mind that while the value of your holdings may rise, there is no guarantee it will do so. In fact, Litecoin or any other investment can also decline in value or even become worthless. When considering a Litecoin IRA, any tax related questions should be discussed with your tax professional.