What Is Litecoin Vs Bitcoin?
Litecoin was invented to eradicate all the shortcomings of Bitcoin and strengthen the overall process, and it can exceed almost 84 million coins. Bitcoin was the first cryptocurrency launched in 2009 and traded globally. The network cannot go beyond 21 million coins.
For the last decade, cryptocurrencies have taken over the financial world. In 2009, when Bitcoin released its first client, a new world of currencies opened up for investors, executives, traders, business owners, and the general public.
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Bitcoin Vs Litecoin Explained
Bitcoin was the first digital currencyDigital CurrencyDigital currency is a currency found only in an electronic form as it is used for trading over the internet. They are famous for allowing transparent and secured digital payments. Although their popularity is constantly growing, their adoption as a reliable alternative to physical money is nowhere close. Some of the popular digital currencies are Ethereum, Bitcoin, and Litecoin. that let the owner of the Bitcoin take charge because there was 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 the silver to the gold “Bitcoin.” Litecoin came into the market in 2011, whereas Bitcoin came into existence in 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.
People prefer Litecoin over Bitcoin 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 capitalizationMarket CapitalizationMarket capitalization is the market value of a company’s outstanding shares. It is computed as the product of the total number of outstanding shares and the price of each share. of Bitcoin, we will see that at the beginning of the year 2008, the valuation of Bitcoin stood at $170 billion. If we compare Bitcoin’s valuation 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, litecoin exceeds Bitcoin by a large number. Litecoin has an upper limit of 84 million coins, whereas bitcoin only has an upper limit of 21 million coins.
The difference may seem a lot, but one bitcoinBitcoinBitcoin is a digital currency that came into existence in January 2009, speculated to be created by Satoshi Nakamato, whose true identity is yet to be authenticated. It provides lower transaction fees than the traditional online payment systems, is controlled by the decentralized authority, and is not like government-issued currencies. 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 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. Users that prefer quick transactions will always choose Litecoin over Bitcoin.
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Let us take an example to understand the difference between them. John wants to invest in two different types of cryptocurrency to understand which is better. So he selects Bitcoin and Litecoin. When he tries to purchase them, he notices that in case of Bitcoin the entire transaction time is more as compared to Litecoin. In that sense, Litecoin is better. However, he was planning to go for a part of both. But Bitcoin offers that facility, while Litecoin doesn’t. Therefore, he was forced to make more investment in Litecoin as compared to the other.
Thus, from the above example we see that both the cryptocurrencies have their own advantages and disadvantages. But both are great investment avenues. However, it is necessary to have a good understanding about them before investing.
The infographics given below show the differences is a concise and systematic format. It helps the reader to interpret and remember the points easily. Let’s see the top differences between Bitcoin and Litecoin.
The key difference section given below highlights the important point of differences between the two topics with a lot of clarity and details. Let us study them and understand the two concepts clearly.
- Bitcoin is considered gold for cryptocurrency. Litecoin, on the other hand, is considered the silver of Bitcoin.
- Bitcoin’s algorithm is SHA-256. For Litecoin, the algorithm is termed 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.
The comparative table below shows the differences in a tabular format points them out on the basis of their history, divisibility, market capitalization, trading limit based on the number of coins and the average transaction time.
|Basis for Comparison
|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.
|Yes. Every Bitcoin can be divided into its hundred millionth part. This hundred millionth part is called “Satoshi
|No. People who like to use a whole coin instead of fractions prefer Litecoin over Bitcoin.
|In July 2010, the market capitalization of Bitcoin was just $42,000. Now at the beginning of 2018, it was $170 billion.
|As of December 2017, the market capitalization of Litecoin crossed over $16 billion.
|Average Transaction Time
|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.
From the above discussion, you’re clear that Bitcoin and Litecoin are the two most significant cryptocurrenciesSignificant CryptocurrenciesCryptocurrency refers to a technology that acts as a medium for facilitating the conduct of different financial transactions which are safe and secure. It is one of the tradable digital forms of money, allowing the person to send or receive the money from the other party without any help of the third party service.. Though both have many differences, they serve their purpose, and market capitalization has constantly increased. Look at both of them and see what you can pick to purchase goods and services online.
This has been a guide to what is Litecoin Vs Bitcoin. We explain it with example, infographics, key differences and a comparative table. You may also have a look at the following articles –