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Bitcoin was the first form of digital currency that brought the idea of cryptocurrency into lite of existence. Litecoin was launched after Bitcoin, an altcoin with similar features and operations, as both operate on blockchain technology. But there are a few differences that exist between the two of them, and the main difference is in the values of both cryptocurrencies and their acceptability to the people.
After the success of traditional digital currency, there are many crypto-coins invented. Litecoin was one of the altcoins invented after Bitcoin in 2011. If you are worried about your future and want to start a crypto investment, you should start with the Bitcoin Storm app and other such applications.
Litecoin has advanced features compared to bitcoin. But Bitcoin provides more secure transactions compared to Litecoin. It is a hash function that is strong for bitcoin compared to Litecoin. Does it mean that Litecoin is less secure?
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Well, no, the hashing algorithm used for the blockchain is known as scrypt. It is slower than SHA-256. But it is becoming popular after Litecoin, as it is memory intensive. Scrypt was modified to work in the CPU for the mining purpose of the cryptocurrency. Though it is not as popular as Bitcoin, it holds the top position among the 25 cryptocurrencies.
Bitcoin and Litecoin, why are they different?
Both bitcoin and Litecoin are popular cryptocurrencies; Litecoin is the fork of the Bitcoin blockchain. Some essential differences increase the value of crypto coins.
- The history:
Bitcoin was the first cryptocurrency that Satoshi Nakamoto invented. The introductory name is the pseudonym of the inventor, who invented it in the year 2009.
On the other hand, Litecoin was invented by Charles Lee in 2011. It is also considered one of the oldest crypto coins that launched with the feature of an open-source global payment network. Both are decentralized and have peer-to-peer transaction ability. Litecoin is considered the lighter version of Bitcoin.
- Production Limit:
The production limit of Bitcoin is 21 million total coins. The supply of Bitcoin is limited, and within years it will exhaust as already 18,925,000 coins are produced. Therefore, 2.1 million bitcoins are left to be released. For this limited supply, there are fewer chances of reducing the value of Bitcoin with high demands.
While Litecoin has a production supply of 84 million, by 2022, there are 14 million Litecoin left for mining. But it has the process of Litecoin halving that reduces the Litecoin production by one-half. It slows down the generation of new coins.
- Transaction time:
The time required for the bitcoin transaction is almost 10 minutes though it can differ a little for different blocks. While comparing with other cryptocurrencies, it has the slowest speed of generating per block of the blockchain.
Litecoin has a transaction speed of 2.5 minutes per transaction, which is lesser than bitcoin. Therefore, Litecoin can form every 2.5 minutes for confirmation. That is, Litecoin can produce a higher number of blocks in less time compared to Bitcoin.
- Transaction cost:
For any cryptocurrency, transaction costs are less as compared to traditional bank transactions. Compared to Litecoin, the transaction cost of Bitcoin is expensive. The cost to produce blocks for Bitcoin is 1 USD and the Litecoin requires 0.012 USD as a transaction cost. Bitcoin used the GPU, which is the graphic processing unit with the SHA-256 algorithm, which makes the process slower.
While Litecoin has CPU processing, a computerized processing unit that means fewer expenses and faster block generation.
- Valuation:
Bitcoin is compared to the gold of the real world. It is believed to be a valuable asset that does not reduce with time. The value of gold increases year after year, without depreciation. Therefore, the value of bitcoin does not reduce but increases with time. It is the reason. Bitcoin is known as Digital gold.
On the other hand, Litecoin is known as digital silver. However, Litecoin is becoming more valuable and demanded day after day.
Conclusion:
These are some of the key differences between Bitcoin and Litecoin cryptocurrencies. Bitcoin and Litecoin are both trading in the crypto market. Digital wallets and crypto exchanges provide safety and protection for transactions. Litecoin was invented to provide a better marketplace in the crypto market when bitcoin was struggling in the volatile market. It is difficult to overtake real-world money. Over the years, the physical existence of money has developed trust. But these amazing cryptocurrencies provide so much convenience that people have already started relying on them.
Cover Photo by Michael Förtsch on Unsplash
DISCLAIMER: This article is sponsored and does not substitute for professional advice or help. Any action you take upon the information presented in this article is strictly at your own risk and responsibility.
It is really difficult to overtake real money, but over the years I think it will become possible. Now a large number of projects are being created that are better than bitcoin in terms of usefulness and in which you can invest. For example, the UtopiaP2P ecosystem, which has its own privacy coin(CRP) and own exchange.
Bitcoins seem to be more famous than Litecoin. Now, people tend to use Bitcoin as they think that Litecoin is less secure than Bitcoin. Take a look at cubes 2048 if you want something more interesting.