We take you through the comparison of Bitcoin vs Litecoin.
Cryptocurrencies are growing to be a daunting topic among people. Over the past few years, especially, since Bitcoin made its debut, the interest in the cryptocurrency market among the general public has dramatically increased. Although Bitcoin is still the stage stealer, many other cryptocurrencies including Litecoin are getting attention from it. The crypto investors are also moving slowly from Bitcoin to other possible profitable cryptocurrencies. Therefore, in this article, we take you through Bitcoin vs Litecoin and talk about their similarities and differences.
After its release in 2009, Bitcoin has remained as a predominant house name in the crypto sphere. However, 2021 has changed the tailwind of cryptocurrency. What remained as a dominant digital currency for almost twelve years is now slowing down its value spike. We can confidently put the blame on Elon Musk, CEO of Tesla, and the Chinese government for suddenly abandoning Bitcoin. Following the fall or maybe, the freeze in growth, other cryptocurrencies are trying to take over the market. Out of the thousands that exist, digital currencies including Bitcoin Cash, Litecoin, Ethereum, Ripple, Dogecoin, etc. are attracting more crypto investors recently. Remarkably, Litecoin, one of the first altcoins that were released in the cryptocurrency market is making significant growth. Therefore, we examine Bitcoin vs Litecoin, along with other features.
Intro
Bitcoin: Bitcoin is the oldest cryptocurrency in the digital currency sphere and has been the leader of the realm for a very long time. While Bitcoin remains the top valued player in the cryptocurrency space with a market capitalization of US$176 billion, other digital currencies including Litecoin, Ethereum, and Ripple are slowly catching up. Post its launch, Bitcoin didn’t receive as many updates to its protocols as many other cryptocurrencies.
Litecoin: Litecoin, created in 2011, was one of the earliest altcoins to emerge in the digital currency sphere. It was introduced to increase accessibility and transaction that better suit payments. Litecoin serves as a complement to Bitcoin’s more natural utility as a store of value. Launched as a copy of Bitcoin’s source code, Litecoin is very similar to the popular currency but has a few crucial differences. While Bitcoin can only generate 21 million coins, Litecoin can go way far and generate 84 million coins. Remarkably, Litecoin’s transaction speed is faster. Owing to its addition of features and constant updates, Litecoin sparked interest among crypto investors and increased price movement.
Similarities between Bitcoin vs Litecoin
As mentioned above, most of the functionalities of Litecoin are very similar to Bitcoin. However, Litecoin has some special features like a unique Litecoin mining hashing function, faster block generation time, and increased maximum coin supply that makes it stand out in the cryptocurrency sphere. But both Bitcoin and Litecoin are decentralized cryptocurrencies that encrypt themselves from any government or central authorities.
Proof of Work (PoW): Both Bitcoin and Litecoin use Proof of Work (PoW), a popular consensus method to add blocks. For example, cryptocurrency miners solve tough math puzzles using a hash algorithm in order to reach a consensus through their respective networks. After successfully adding blocks of valid transactions to their blockchains, miners are provided with block rewards.
Storage and transactions: The major reason why crypto investors choose Bitcoin and Litecoin over other cryptocurrencies is their easy transaction facilities. Both the cryptocurrencies can be easily purchased or exchanged using the crypto trading platform. The mining methods are also comparatively simple. Other similarities include the necessity of a cold wallet, prices, regulations, etc. Besides, both Bitcoin and Litecoin are profoundly dramatic and greatly volatile.
Comparison of Bitcoin vs Litecoin
Despite having many similarities in the core level, Bitcoin vs Litecoin has equal or more differences as well. However, the crowd over Bitcoin is enormous and it is increasing day by day. Therefore, crypto investors sometimes prefer Litecoin over Bitcoin for investments.
Transaction speed: One thing that makes crypt investors choose Litecoin over Bitcoin is its transaction speed. The creators of Litecoin specifically put extra efforts into making the digital currency easily accessible and free of hurdles when it comes to the transaction. Litecoin transaction is almost four times faster than Bitcoin transaction. People who are looking to do quick transactions amidst their busy schedule choose Litecoin.
Market capitalization: A major concept that makes Bitcoin outperform all other cryptocurrencies is its market capitalization. Compared to Litecoin, Bitcoin’s market capitalization is seventy times larger with a total valuation of US$13.7 billion. Not just Litecoin, even its closest competitor Ethereum (market capitalization: US$212 billion) can’t stand near Bitcoin’s market capitalization. Therefore, Bitcoin enjoys the luxury of being at the top for a long time.
Distribution: One way that bitcoin proves to be better than Bitcoin is in its speed of transaction and distribution. Compared to Bitcoin, Litecoin can perform transactions four times faster. Even though this may appear like a significant advantage for Litecoin, in the real-world scenario, it is proven to be negligible. This is so because Bitcoin and Litecoin are divisible into nearly infinitesimal amounts.
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