Differences Between Litecoin and Bitcoin
Bitcoin is the very first cryptocurrency that was launched in the year 2009 and it is traded globally, network of which cannot go beyond 21 million coins while Litecoin was invented with a motive to eradicate all the shortcomings of bitcoin and strengthen the overall process and it can exceed almost 84 million coins.
For the last decade, cryptocurrencies have taken over the financial world. In the year 2009, when Bitcoin released its first client, a new world of currencies have opened up for the investors, executives, traders, business owners, and the general public.
- Bitcoin was the first digital currency that let the owner of the Bitcoin take charge because there is no central authority that would act as a gatekeeper. After, numerous cryptocurrencies came into existence. The name that stood out was Litecoin.
- When Litecoin came into the market, it was considered as the silver to the gold “Bitcoin”. Litecoin came into the market in the year 2011, whereas, Bitcoin came into existence in the year 2008.
Since both of these cryptocurrencies came into existence during the beginning of the cryptocurrency market, there are many similarities. And they are also different in a few cases.
- Why people prefer Litecoin over Bitcoin is because Bitcoin is more expensive than Litecoin. Yes, you would be able to buy a series of goods and services using Bitcoin. But Litecoin is famous for a much cheaper and quicker form of transactions.
- If we talk about the market capitalization of Bitcoin, we will see that as at the beginning of the year, 2018, the valuation of Bitcoin stands at $170 billion. If we compare the valuation Bitcoin had in July 2010, there’s a prodigious improvement in market capitalization. In July 2010, the market capitalization of Bitcoin was just $42,000.
On the other hand, if we talk about the number of coins, the litecoin exceeds Bitcoin by a large number. Litecoin has an upper limit of 84 million coins as of now; whereas, bitcoin only has an upper limit of 21 million coins.
- The difference may seem a lot, but actually, one bitcoin can be divided by a hundred million and that tiny, little hundred millionth part is transferable. This one hundred millionth part is called “Satoshi”. As a result, if someone wants to buy something at a low price, it is possible by using Bitcoin.
- For Litecoin, there’s no fraction. As a result, even if the upper limit of Litecoin seems huge, it is actually not much compared to the fraction of Bitcoin. But again, many people like to transact in the whole coin (and not in a fraction). For them, Litecoin is most suitable.
- Litecoin has a definite advantage over Bitcoin in terms of average transaction time. For Litecoin, it takes just 2.5 minutes. But for Bitcoin, it takes at least 10 minutes. For users that prefer quick transaction will always choose Litecoin over Bitcoin.
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Bitcoin vs Litecoin Infographics
Key Differences
- Bitcoin is considered gold for the cryptocurrency. Litecoin, on the other hand, is considered the silver of Bitcoin.
- Bitcoin’s algorithm is SHA-256. For Litecoin, the algorithm is termed as Scrypt.
- The average transaction time for every transaction of Bitcoin is 10 minutes. On the other hand, the average transaction time for every transaction of Litecoin is 2.5 minutes.
- The upper limit of Bitcoin is 21 million coins. On the other hand, the upper limit of Litecoin is 84 million coins.
- Every Bitcoin can be divided by a hundred million. The resultant part is called “Satoshi”. On the other hand, Litecoin isn’t divisible. As a result, Litecoin needs to be used as a whole. And that’s why many people like to use it.
Comparative Table
| Basis for Comparison | Bitcoin | Litecoin | ||
| Came into existence | In the year 2008. | In the year 2011. | ||
| Total number of coins | The maximum limit is 21 million. | The maximum limit is 84 million. | ||
| Divisible | Yes. Every Bitcoin can be divided into its hundred millionth part. This hundred millionth part is called “Satoshi”. | No. That’s why people that like to use a whole coin instead of fractions prefer Litecoin over Bitcoin. | ||
| Market Capitalization | In July 2010, the market capitalization of Bitcoin was just $42,000. Now at the beginning of the year 2018, it was $170 billion. | As of December 2017, the market capitalization of Litecoin crossed over $16 billion. | ||
| Average Transaction Time | On average, the average transaction time for every Bitcoin transaction is 10 minutes. | For Litecoin, the average transaction time is 2.5 minutes. That’s why many prefer Litecoin over Bitcoin. |
Conclusion
From the above discussion, you’re clear that Bitcoin and Litecoin both are the two most significant cryptocurrencies. Though both have many differences, they serve their purpose and market capitalization have been constantly increasing. Look at both of them and see what you can pick to purchase goods and services online.
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