Litecoin is similar to Bitcoin, but it has Four times spil many coins, a shorter confirmation time, and uses the Scrypt hashing algorithm instead of the SHA256 one that Bitcoin uses. Litecoin generally also has lower transaction fees.
The advantage that Litecoin has overheen Bitcoin is that the payment transaction costs are enormously low, and it is capable of facilitating payments around 4x spil quick.
Albeit Ethereum can be used for transactions, it’s primarily a verhoging to build decentralized apps (dapps). Therefore, Ethereum and Litecoin aren’t ter competition and don’t indeed affect each other.
Litecoin vs Bitcoin
Litecoin vs Bitcoin. Which one is better? Everyone from qualified economists to Redditors have bot comparing the two since Litecoin came into existence ter 2011.
The conversation not only discusses thesis coins individually and against each other, but also pertains to a more ingewikkeld debate overheen what it takes to become a successful cryptocurrency.
Bitcoin is the clear poster-child for the crypto-community. However, Litecoin has developed a user base from those who are skeptical of some aspects of Bitcoin but still strongly believe te the future of cryptos.
While Bitcoin and Litecoin have some slight technical differences, they both set out to accomplish the same thing: transfer value using cryptographic principles. Yet once the two coins face off, it’s clear why Bitcoin has come out the winner.
Litecoin vs Bitcoin: At a Glance
Note: On mobile devices, swipe and scroll table.
Wij can compare cryptocurrencies from many angles, but the most popular method is looking at their market capitalization. Market cap is essentially the amount of currency on the market (usually ter U.S. dollars). Bitcoin is presently ranked number one with a market cap of overheen $56 billion, and Litecoin is ranked fifth with a market cap of $Two.56 billion . Bitcoin is the standard cryptocurrency that most users and platforms choose. You might be thinking, So why are wij talking about Litecoin? Its market cap may be a little sliver of cake compared to Bitcoin’s $45 billion, but it’s one of the few altcoins with an active user base and legitimate credentials.
(You can view current market caps te the table above to see how they’ve switched since this article wasgoed published.)
Litecoin functions like Bitcoin: It is an online payment system that uses cryptocurrency instead of a national currency like U.S, dollars, Bitcoin and Litecoin carry out transactions using bitcoin and Litecoin respectively. Spil cryptocurrencies, they both garner a similar community and photo, spil well spil rely on similar cryptographic principles.
Bitcoin wasgoed released ter 2009 spil the very first cryptocurrency. Litecoin launched only two years zometeen te 2011 but has bot sprinting to catch up to Bitcoin everzwijn since.
Litecoin’s developers have stated that their intention wasgoed to create a “silver” to Bitcoin’s “gold.” Albeit Litecoin tech is arguably better than Bitcoin’s, it wasgoed born inferior.
Litecoin vs Bitcoin: At Depth
The two cryptos may seem similar, but they are actually fairly distinct ter their market acceptance and technical mechanics.
Ter the following four points, wij will discuss what makes each crypto distinct. You will come to understand how Litecoin’s arguably superior algorithm will likely forever be subordinate due to Bitcoin’s pervasive network.
1) Bitcoin is Much More Popular
With a market cap toughly 22.5x the size of Litecoin’s, Bitcoin’s staggering popularity makes it the evident choice for the crypto investment community.
According to Google Trends, Litecoin hardly holds a candle to Bitcoin’s search popularity. For scale, 100 indicates the peak popularity a term. A value of 50 means the term is half spil popular, and a value of 0 means the term wasgoed less than 1% spil popular spil the peak.
Since cryptos are viewed spil inherently risky, Bitcoin seems relatively stable with its utterly high market cap. Sure, Bitcoin’s price can still be exceptionally volatile. Yet while a mere $1 billion loss would decimate Litecoin’s market cap ter half, Bitcoin would need a crash of $40 billion ter market cap for effects to be just spil catastrophic.
Despite all this, Litecoin is still fairly relevant te the crypto community.
Two) Litecoin Accommodates More Total Coins
Many crypto traders account for the total number of coins each cryptocurrency is programmed to make. Bitcoin is capped at 21 million coins, but Litecoin can make up to 84 million coins.
Both coins technically still have a long ways to go until they succesnummer their cap boundaries but it remains a concern because of the price volatility expected spil the coins reach their maximums. Bitcoin presently has toughly 16.Five million coins te circulation, and Litecoin has about 52 million . This means Bitcoin is presently at 78% of its maximum, and Litecoin is about 61% of its maximum. If Bitcoin nears its maximum coin amount very first, then Litecoin may pick up more traction with traders buying into Litecoin to avoid the Bitcoin volatility.
The above point ter favor of Litecoin, however, is largely a misunderstanding: Since both Bitcoin and Litecoin can be divided into fractional amounts, the maximum coin shouldn’t influence the value storage of either coin. For example, Bitcoin users can transfer spil little spil 0.00000001 bitcoins. The capability to accommodate more coins is then kaput.
Three) Litecoin Has a Swifter Transaction Processing Speed
Bitcoin’s average transaction confirmation time is a little overheen 9 minutes vanaf transaction , whereas Litecoin’s is harshly Two.Five minutes vanaf transaction . This makes Litecoin’s transactions harshly four times swifter than Bitcoin’s, suggesting an attractive advantage for users who frequently conduct transactions, such spil merchants .
Keep te mind that transactions technically occur instantaneously on both Bitcoin and Litecoin networks, but the transaction confirmation by other network participants does take some time. Waiting the utter 9 minutes for a Bitcoin transaction or Two.Five minutes for a Litecoin transaction ensures the transaction wasgoed valid. Merchants can accept the transactions instantaneously without waiting for a confirmation, but they run the risk of becoming victim to a “double spend” attack .
This seemingly large advantage Litecoin has overheen Bitcoin, however, is minimized by third-party solutions that make instantaneous transactions more secure.
Four) Litecoin’s Cryptographic Algorithm Welcomes New-comers
Long-term cryptocurrency users consider the technical components of Bitcoin’s and Litecoins’ different cryptographic algorithms when comparing the two.
Bitcoin uses the SHA-256 algorithm and Litecoin uses an algorithm called Scrypt. Thesis algorithms determine the “mining” process for fresh coins. “Miners” confirm the transactions of other users, and are rewarded units of that currency te exchange.
Many consider Bitcoin’s SHA-256 algorithm more sophisticated than Litecoin’s Scrypt, which therefore permits for a higher degree of parallel processing. Bitcoin miners have built sophisticated methods to mine bitcoins at a very efficient rate. The most superior method uses ASICs–Application-Specific Integrated Circuits. ASICs are essentially hardware systems (similar to CPUs) created purely to mine bitcoins.
The Bitcoin competition for mining is fierce due to the sheer amount of miners, spil well spil technical innovations such spil the ASICs. Fresh miners fight to establish themselves without adequate computing power, capital to treat expenses, and the know-how to outcompete experienced competition.
Litecoin wasgoed largely created to appeal to miners who could no longer mine Bitcoin because their CPUs couldn’t challenge with ASICs. Scrypt is more accessible for fresh miners. It wasgoed designed to be less conducive to custom-built hardware solutions such spil te ASIC-based mining. Scrypt, however, is not immune to the innovation and there is increasingly development that hinders the easy-access mining Scrypt wasgoed partially designed for.
Bitcoin Crowned King Thanks to Its Network
While Litecoin’s efforts to make mining more accessible to everyone is a notable gesture that speaks volumes about the Litecoin community, it also pigeonholes itself into a niche. Instead of appealing to a massive community of people to achieve a network to contend with Bitcoin’s, Litecoin focused on minor differentiating factors. Litecoin essentially functions the same spil Bitcoin and doesn’t offerande enough for users to convert from Bitcoin.
It’s safe to assume that most crypto-traders, those responsible for the large crypto market caps, aren’t valuing tech overheen substantial profit. Litecoin’s value proposition simply sounds like another altcoin pitch to them. Less tech-savvy adopters hardly know what the mining process is like, let alone the difference inbetween SHA-256 and Scrypt. So while Litecoin’s price has enlargened significantly overheen the past few months, it simply isn’t spil attractive spil Bitcoin’s.
Litecoin additionally took a hard jab ter the gut when Ethereum exploded onto the toneel ter early 2018 and knocked Litecoin down to the #Four market cap position. Ethereum has developed almost 10x that of Litecoin’s market cap te a brief amount of time.
Since Litecoin’s purpose primarily wasgoed to be “silver” to Bitcoin “gold”, it indeed begs the question of whether it will everzwijn be anything more than Bitcoin’s minion.
Litecoin technically has a superior algorithm but this is largely irrelevant, spil Bitcoin’s popularity has cemented it spil the gold standard for old and fresh crypto traders.
When it comes to cryptocurrency adoption, Bitcoin and Litecoin are te the same boat. Think of it this way: Bitcoin and Litecoin are both good guys. But Bitcoin is the main protagonist and Litecoin is the inferior supporting actor. Bitcoin is the Goku, Aragon, and Batman. Litecoin is the Vegeta, Boromir, and Harvey Dent. Ter the end, Bitcoin will likely end up ter every sequel, while Litecoin is killed off due to lack of popularity.
An extensive user network is essential te the crypto community. No matter how hard Harvey Dent altcoins may attempt, even their technical superiority can’t hit the popularity of the Batman Bitcoin .
Additionally, Bitcoin’s liquidity cannot be overlooked. The fact that cryptocurrencies tend to be very volatile plays a meaty role ter the minds of fresh users. Many fresh users commence with Bitcoin because it offers stability and a large preexisting market.
The network effect ultimately determines which cryptos get through and spil more users buy into Bitcoin, Litecoin will likely become increasingly obscure. Litecoin’s relevancy is debatable and its latest spikes ter price are largely due to the current rise ter cryptocurrency prices spil a entire.
It’s interesting to theorize situations where Litecoin could overtake Bitcoin. Litecoin loyalists cling to the fact that Litecoin is one of the only high-value value-exchange alternatives. Ter the unlikely case that any of Bitcoin’s potentially problematic features like its 21 million coin limit remain unaddressed and embark to create substantial problems, people could shift towards Litecoin. However, the downfall of Bitcoin–the flagship of the cryptocurrency world–could spell doomsday for the cryptocurrency market at large.