Litecoin is a branch off the Bitcoin project. It’s essentially the same as bitcoin with a few interesting and distinct features. For one it features Scrypt-based mining which is more difficult for ASIC and FGPA miners. Secondly it boasts a quicker transaction confirmation speed which simultaneously allows for quicker transactions and an overall greater total number of Litecoin to exist, proportional to the speed increase.
In the past I thought it a needless redundancy and a distraction from bitcoin’s growth efforts. I have changed my mind for 3 reasons:
1 – Money. If you want to maximize your ROI litecoin mining is the way to go. It costs less to get a GPU than to get an ASIC or a FGPA and Litecoins have been stable to about .02 BTC lately, regardless of BTC’s fluctuation relative to the USD. This means if you are trying to get the most USD ROI you will mine litecoin. Look at this page and check “Ratio vs BTC” to find maximum profitability.
2 – Safety. Litecoin acts as a hedge against a BTC >50% attack. If bitcoin gets overtaken by ASIC power it will not affect Litecoin because of Scrypt.
3 – Anonymity. Litecoin is the ultimate bitcoin washer. If I sell bitcoin for litecoin, transfer that litecoin to a new wallet, and then my litecoin right back to bitcoin, as long as I use 4 unique wallets, it is virtually impossible to trace the coins. This is because I now have “fresh” bitcoins that came from a purchaser or group of different purchasers on the open market and they have gone to a new clean wallet that is untraceable to my old wallet. This can be used in conjunction with throwaway accounts on many exchange sites and cold storage instead of cloud storage to maximize anonymity with relative ease.
In conclusion I have found that litecoin has theoretical, intrinsic and practical value, at least some of which is not offered by a bitcoin-only system. Right now litecoin is also particularly easy to mine and profit from. Watch this guy’s how-to on litecoin mining. He is hilarious and a genius and I have watched alot of his videos:
Generate your own litecoin wallet here!!
Litecoin client here!!
A list of services!
Chatroom: irc.freenode.net #litecoin (list of other related channels)
Recommended mining pool