Litecoin Is More Useful For Payments Than Bitcoin: Founder Charlie Lee

Litecoin Is More Useful For Payments Than Bitcoin: Founder Charlie Lee

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Litecoin was launched in 2011, the time when Bitcoin was the only cryptocurrency on the market.

In brief:

The founder of litecoin, Charlie Lee, says that litecoin’s mission has always been to complement bitcoin as the payments currency. Moreover, he has expressed his concern over increasing scams in the nascent crypto market.

It seems Litecoin founder Charlie Lee has become worried about all the scams in the nascent crypto market. An ex-employee of both Google and Coinbase, Lee, doesn't see anything wrong with speculation, however, he stressed about the speculative nature of bitcoin and other cryptocurrency investment, saying that it's not "bad" but instead a "natural progression."

Litecoin was launched in 2011, the time when Bitcoin was the only cryptocurrency on the market. Now with increasing scams in the crypto world, Lee also had to fight off rumors of manipulating the price of Litecoin. He said, "It's quite easy for a founder to pump a coin and make it seem like it's the latest and greatest and it will cure world hunger, and the price can go up to $10 billion. And it's easy for whoever did that to cash out."

Most of the ICOs with white papers loaded with tech jargon only make promises and easily raise hundreds of millions of dollars in the process. "These coins will likely just go to zero," Lee added.

Time and again blockchain veterans have highlighted the social good in the genesis of blockchain technology. Both Lee and Ethereum's Vitalik Buterin believe that the "crypto community" should focus on the technology. In December, Lee sold his entire Litecoin portfolio, except a handful of "collectibles," to put off what he said could be interpreted as a "conflict of interest."

Charlie Lee has expressed his views and concerns on the cryptocurrency space along with other blockchain pioneers, like Buterin who has echoed similar concerns against the deceitful activities. In response to one of the Reddit user who questioned an upcoming ICO's claims of having a Buterin association, Buterin tweeted: "This is exactly the correct way to react to an ICO claiming my involvement."

Likewise, Ripple chief Brad Garlinghouse stated that much of what's unfolding among ICOs is fraud. According to CNBC, Joseph Lubin, Ethereum co-founder, said that many upcoming ICOs that fit the bill as "copycat" projects, with no intentions of providing value to investors.

However, scams and fraud are not the only issues. In 2011, Lee, a Google software engineer at the time, developed Litecoin to improve upon Bitcoin, and in particular to address the widespread scalability flaws of bitcoin.

Lee says, "So my vision for Litecoin has always been to complement Bitcoin — to be the payments currency. Where bitcoin would be digital gold, Litecoin would be silver. It's more useful for payments. And bitcoin would be better as the store of value."

According to him, Litecoin is 4x faster than bitcoin for transactions. However, it didn't pose a competition to Bitcoin due to a different POW algorithm because of which cryptocurrency miners can't mine both coins. Although, Litecoin has emerged as a rival to XRP rather than to Bitcoin.

Lee expressed faith in the future of Bitcoin but stated that its success depends on the help of technologies like Lightning Network, or alternative coins like Litecoin, to make payment processing quicker and less costly. He pointed out that the Lightning Network is the primary technology that will develop the payments sector. "So Litecoin I think can find its own niche to help address payment fees," he said.

As per coinmarketcap. Litecoin is the No. 6 cryptocurrency based on market cap, at $8 billion, and has gained 650% since July last year.

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