Tag Archives: litecoin

Forbes names Litecoin the best investment for time travelers going back to early 2013

Forbes published an article today that highlights the tremendous earning power of Litecoin for anyone that had the foresight to buy-in a year ago—it handily beat out top stocks, gold, and even Bitcoin to earn its spot as the top investment of 2013. From the article:

The best way to spend a c-note on January 1, 2013 was on competing cryptocurrency Litecoin. Worth seven cents then, its value increased along with Bitcoin’s, reaching $23 by December, or 328 times its initial value. That means a $100 investment in Litecoin last year would be worth $30,000 now.

No doubt many of you did tremendously well with Litecoin last year. Hopefully 2014 will continue the trend!

Expect a correction on these runaway cryptocurrency valuations

It’s been exciting watching litecoin go from ~$10 to ~$30 over the past 48 hours, and seeing bitcoin punch through $1000 today. But I’d urge everyone to not make any rash decisions about dumping large amounts of cash into crypto, with the hopes of riding this crazy train to riches. The current growth is mostly being driven by rampant speculation, and it isn’t sustainable.

Litecoin 24 hour performance

Litecoin performance over the past 24 hours on btc-e.com

There will very likely be a correction at some point in the near future. Given the massive growth of litecoin, and bitcoin passing through the $1000 barrier, you can also expect a lot of mainstream media attention in the coming days—so we might actually see an even crazier price run-up before prices return to saner levels. But anyone that doesn’t expect a short-term correction is probably in denial.

In my opinion, before these kinds of valuations are justified, we need to see far more acceptance of cryptocurrency from merchants, and we need consumers that are willing to actually spend their coins on everyday purchases—instead of hoarding them in the hopes of a huge payday. In the case of altcoins, we also need better support from the major trustworthy payment processors and exchanges. Progress is being made on all fronts, but we have quite a ways to go. I believe we’ll get there, but it won’t happen overnight.

I’m absolutely not suggesting that you should exit your position in crypto immediately, and then re-buy after the inevitable correction occurs. Trying to time the market requires a lot of luck, and will likely result in regret for most of those that attempt it. I still absolutely believe in the $50+ prediction for Litecoin that I made 2 weeks ago (LTC was $4/coin then!), I just didn’t expect that we’d be more than halfway there before reaching the end of the month! If you agree that Litecoin has a potentially bright future, then the best move for most of you is to simply not panic when the inevitable correction happens.

Keep calm and continue mining. Try to not get caught up in the price hype, although I’ll be the first to admit that it’s certainly fascinating to watch.

Max Keiser predicts $50+ for Litecoin

Looks like Max Keiser agrees with my long-term prediction for Litecoin. He tweeted this morning that he expects Litecoin to hit $50.

LTC hit a record high earlier today, reaching nearly $6.50 before pulling back a bit.

On mining profitability

With the price of litecoin and bitcoin on the rise, I’ve received a tremendous amount of email over the past couple weeks from people wanting to know whether or not it’s “too late” to get into mining. Or how soon one can expect to break even on a new mining rig purchase. Or what my predictions are for the future value of cryptocurrency in general. I’ve responded to many of you already, but it probably makes more sense to post something here publicly.

Full disclosure: I don’t have a crystal ball. I have no idea what the future holds with regard to bitcoin or litecoin valuation. There are far to many variables and unanswered questions—especially on the regulation front—to make predictions with a high degree of confidence. However, I’d be happy to share some observations that I’ve made over the past few years, and offer my 2 cents in a general sense. Read on if you’re interested.

Android Bitcoin & Litecoin wallets potentially vulnerable to theft due to coding flaw

Due to a serious flaw in the Java secure random number generator used by many Bitcoin applications on the Android operating system, any wallets generated by Android apps are potentially vulnerable to theft. While the advisory on bitcoin.org only mentions Bitcoin, the flawed code is also used in many Android Litecoin wallets, and probably also in whatever wallets exist for the various other cryptocurrencies.

If you have an Android wallet application on your mobile device, I highly recommend that you immediately generate a new address with the appropriate official desktop client (click here for Bitcoin and and here for Litecoin) and send all of your coins there. Do not use a cryptocurrency wallet on the Android OS until you can confirm that the version you’re using has been patched to fix the vulnerability, and discard any previously-generated wallet addresses permanently.

Update 8/12: The BBC has posted an article on the issue.

Update 8/14: And the first confirmed thefts due to the bug are starting to be reported.

WSJ blogger asks: “Are Litecoins the next big thing?”

LitecoinAt least one Wall Street blogger believes that Litecoins are the next big thing.

The author’s post hits on the standard litecoin vs. bitcoin differences, but mostly focuses the success of CipherMine, a Litecoin-mining company that went public a few weeks ago on the LTC Global Exchange. From the post:

Shares in CipherMine, a company that creates virtual currency Litecoin, soared 500% following their initial public offering on June 24 on a virtual stock exchange, LTC Global Exchange. Since launching less than a month ago, the UK-founded CipherMine has achieved a market value of around £500,000 ($744, 500).

Australian retailer now accepting Bitcoin and Litecoin

Gizmodo is reporting that Australian electronics retailer Millennius is now accepting both Bitcoin and Litecoin as forms of payment on its website. While quite a few global retailers have already adopted Bitcoin, Millennius believes that they’re the first to accept Litecoin.

Good news for cryptocurrency, and especially Litecoin—hopefully more retailers follow suit in the coming months.

Business Insider: Litecoin is the silver to Bitcoin’s gold

litecoin logoLitecoin is starting to get attention in mainstream news as a complementary cryptocurrency to the more established Bitcoin. Business Insider posted a short piece today describing Litecoin as the “silver to Bitcoin’s gold”.

The article is short and largely inaccurate on the technical details, but any press that raises public awareness of digital currency is probably a good thing.

Edit 6/16: Looks like Wired UK is getting aboard the Litecoin train, too.

WeMineLTC litecoin pool possibly underpaying miners

If you use WeMineLTC as your litecoin mining pool, you should take a careful look at your earnings. There have been an increasing number of reports from miners that the pool is underpaying by ~30%, either because the operators are intentionally skimming, or because the pool is misconfigured. You can read more in this Reddit thread, or here on the Bitcointalk forums.

I have never used WeMineLTC, so I can’t comment personally. Mining pool scams certainly aren’t unheard of, so regardless of which pool you choose, make sure to keep an eye on your earnings to ensure that they’re in line with expectation (don’t forget to account for the pool’s fee, any pool or miner downtime, and internet latency).

Update 5/29: Apparently there was a vulnerability in WeMineLTC’s pool code that was exploited by some users to steal coins. It has been patched as of today.

Guide: Cryptocurrency Wallet Security

Litecoin walletSo you’ve built your own mining rig, you’ve mastered the art of trading for profit on the cryptocurrency exchanges, but you haven’t given much thought to securing your digital fortune against theft and accidental loss? Don’t worry, you’re not alone. Wallet security isn’t exactly a glamorous topic. In fact, many of you might even assume that you don’t need your own wallet at allafter all, mining pools and currency exchanges are more than happy to hold your money for you, right?

Letting somebody else control your money is a mistake that will likely end up costing you at some point. That mining pool operator that you assume is trustworthy could very well be a teenager halfway around the world that has no problem stealing your coins. The various digital currency exchanges are unregulated, not necessarily secure, and a daily target for hackersgood luck getting your money back when one is breached or goes belly up.

Since it’s still basically the Wild West when it comes to cryptocurrencies, the only way to ensure that your digital wallet can’t be stolen or lost is to secure it yourself. Thankfully, this isn’t all that difficult if you follow a few basic rules. Read on for the guide.