Litecoin and Bitcoin
On the exterior, cryptocurrencies Bitcoin and Litecoin seemingly have many common features as they are both decentralized crypto coins, but they differ in many ways. Fiat currencies like the US Dollar depend upon central banks backing for different factors as speculation of legitimacy, controlling circulation and value, cryptocurrencies are free of centralized authority. Cryptocurrencies are reliant on the cryptographic transparent network and integrity. Litecoin was released in 2011 by Charlie Lee, the Google engineer- who addresses Litecoin as Bitcoin’s lite version. The developers designated Bitcoin the gold status and Litecoin the silver.
Bitcoin is a virtual currency, cryptocurrency, or a digital currency, created in January 2009 – It is completely virtual or online cash. One can purchase goods and services with bitcoin, but some countries have completely banned it. However, more and more companies are buying it today, including PayPal, which started accepting BTC last October. Its ideas are set out in whitepaper by a pseudonymous individual or team called Satoshi Nakamoto.
Bitcoin and Litecoin share the same Proof of work for their ecosystems. Both the cryptocurrencies are mined, i.e., they are generated, then authenticated, and finally added to the blockchain or the public ledger.
Technologically Different
- Distribution: Bitcoin and Litecoin differ in numbers that they can be produced. The Bitcoin network cannot have more than 21 million coins, whereas Litecoin has no cap.
- Scalability: Bitcoin is unable to make many transactions simultaneously, whereas Litecoin is more scalable.
- Litecoin produces or mines faster with a 70% hash rate on its 5 pools, whereas Bitcoin has a 60.4% Hash rate only with 6 pools.
- Transaction Speed: Transaction happens immediately, but Litecoin is faster as its confirmation on the system is much faster.
- Bitcoin takes 9 minutes to add a block on the blockchain and confirm it, and Litecoin takes only 2.5 minutes.
- Algorithms: Bitcoin uses the SHA-256 algorithm, and Litecoin uses the new Scrypt algorithm.
- Block rewards are halved after 210,000 blocks, whereas Litecoins are halved after 840,000 blocks.
- Litecoin is easier to mine than ASIC mining as the foundation and consumes much less power than Bitcoin.
- Miners use CPUs to mine Litecoin.
Unparallel Return on Investment
- Both are different in Market Capitalization, which is the dollar value of the unresolved coins.
- Bitcoin enjoys a circulation of 1 trillion currently with a 70x bigger market cap of 13.7 billion.
- Bitcoin’s market cap is greater than all other altcoins combined as it dominates the overall crypto market by almost 68%.
- Litecoin and Bitcoin both have lower transaction fees, but Litecoin is still lower.
- Litecoin vs. Bitcoin as a mode for payment (mention differences in points).
- Litecoin functions as an online payment system, and Bitcoin is used to purchase goods and services and gamble online.
- Bitcoin is more popular than Litecoin.
- Litecoin uses Litecoin as a unit of transaction, whereas Bitcoin uses Bitcoin.
Litecoin vs. Bitcoin: Store of Value
Gold and other precious metals like silver, etc., are good stores of value as they have a perpetual shelf life, and so is a nation’s currency.
- Litecoin is a deflationary currency, and it will only increase in value, more so as the world has an inflationary model. Litecoin is a great store of value.
- After the last Bitcoin is mined, there won’t be anymore. So it is a scarce asset and limited in supply, and therefore with demand going up, its price will escalate, making it a store of value as an asset.
A Perspective on Future Development
According to the Economy Forecast Agency or EFA, as per the long-term Litecoin price forecast, Litecoin is predicted to rise to $260 in January 2022 and go down to approximately $100 by the end of October 2022. It will increase to 2023 in the first quarter in March to $193 and $174 in January.
Bitcoin is a powerful coin and is expected to grow astronomically. It will go beyond USD 100,000 to one million USD per BTC in the time to come.
Final Thoughts
Bitcoin and Litecoin are both decentralized cryptocurrencies, but the difference in other aspects is the price, mining time, store of value, and predicted futures. Bitcoin enjoys a store of value, and Litecoin is presumably expected to go up somewhat. There is a cap of 21 million on Bitcoin mining, and Litecoin will be mined to 84 million. Litecoin is faster and can make many transactions simultaneously, whereas Bitcoin cannot. It takes approximately 9 minutes to mine a bitcoin and only 2.5 for Litecoin. Even though Litecoin has an edge on Bitcoin technology-wise, Bitcoin’s price is expected to go up beyond $100,000.
