Bitcoin and Litecoin share many technical aspects. Although not many digital currencies have been able to rise in the shadows of bitcoin, also because of the given crowded field making it increasingly difficult, litecoin has silently stood up to the competition. We may receive compensation when you click on links to products we reviewed. “Something like that could like destroy 90 percent of its value overnight. Many early owners have made huge amounts of money over the past year. This would not be the last time that Litecoin beat Bitcoin to the technical punch. Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled. Participants operate directly, without the use of an intermediary like a bank, credit card company, or payment processing service. In both Bitcoin and Litecoin, the process of confirming transactions requires substantial computing power. The central difference is that Litecoin is mined using the Scrypt algorithm, which is rooted in mathematical computations that are simpler than those used by bitcoin's SHA-256 algorithm. Finextra. While some companies have brought Scrypt ASICs to the market, Litecoin’s vision of more easily accessible mining is still a reality, as a good portion of Litecoin mining is still done via miners' CPUs or GPUs.. And if scarcity is driving the demand behind Bitcoin, the fact that Litecoin isn’t at all following is confusing. "The Psychology of Decimals." The goal is to remove the unlocking signature, also known as “witness” data from the original portion. Since the entire market cap of Litecoin is smaller than Bitcoin’s, there is less risk when trying out new software upgrades to Litecoin. Bitcoin was designed and built in 2008 and entered the market in 2009. Furthermore, the prices of both cryptocurrencies have over time proven to be subject to dramatic volatility, depending upon factors ranging from investor interest to government regulations. The exchanges below enable the purchase of both of these digital assets. Litecoin’s belief system is the same as Bitcoin’s only seeking to do so at a slightly faster speed and transaction rate. For that reason alone, it will always hold value among the community. Bitcoin’s algorithm uses SHA 256, while Litecoin uses scrypt algorithm. That’s not to say any of it is a guarantee. What Are Cryptocurrency Custody Solutions? In Litecoin vs Bitcoin, Litecoin was created because Charlie Lee wanted to change the way Bitcoin worked. This hundred millionth part is called “Satoshi”. Litecoin can produce a greater number of coins than Bitcoin and its transaction speed is faster, but these factors are largely psychological boons for the investor and don't impact the value or usability of the currency. Learn about altcoins, how they work, and which are the most popular. According to data from Blockchain.com, the Bitcoin network’s average transaction confirmation time (the time it takes for a block to be verified and added to the blockchain) is currently just under nine minutes per transaction, though this can vary widely when traffic is high. The equivalent figure for Litecoin is roughly 2.5 minutes., In principle, this difference in confirmation time could make Litecoin more attractive for merchants. Litecoin (LTC), which is known as the silver to gold of Bitcoin, has become a big cryptocurrency since 2018. It uses cryptography to secure and verify transactions as well as to control the creation of new coins. Can I Send Litecoin To a Bitcoin Address? Final Thoughts: Bitcoin Mining vs Litecoin Mining. Price (USD) BTC 56738.20. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies. Litecoin vs. Bitcoin: Improved Speed and Accessibility. At the moment, Litecoin block size is 1MB and is smaller when compared to Bitcoin Cash’s 32MB block size. Bitcoin Cash vs Litecoin was an interesting comparison, however, it looks like Bitcoin Cash really beats Litecoin in every category. "Satoshi (Unit)." When Litecoin came into the market, it was considered as the silver to the gold “Bitcoin”. Please view our affiliate disclosure. Bitcoin Forum. Notably, the first Lightning Network transaction transferred 0.00000001 LTC from Zürich to San Francisco. However, it must be noted that Bitcoin has proven to be a better, or at least more popular, store of value versus Litecoin. Accessed March 10, 2021. He specializes in writing articles on the blockchain. Securities.io is not a registered broker, analyst, or investment advisor. As of March 2021, the total value of all bitcoins in circulation is around $1 trillion, making its market cap more than 70 times larger than Litecoin, which has a total value of $13.7 billion. Whether Bitcoin's market cap strikes you as either high or low depends largely on a historical perspective. When we consider that Bitcoin’s market capitalization was barely $42,000 in July 2010, its current figure seems staggering. Much like silver, it’s more affordable than the premier option but still is a wise investment. Litecoin is one of the oldest cryptocurrencies and was launched in 2011, just two years after Satoshi created Bitcoin. The next point of comparison for Litecoin vs. Bitcoin is network hashrate, or the total mining power allocated to the network by miners. You will come to understand how Litecoin’s arguably superior algorithm will likely forever be subordinate due to Bitcoin’s pervasive network. It was at an all-time high in 2017, but with the crypto winter, things had slowed down. Litecoin Wiki. As you probably heard, cryptocurrency is a digital currency. Litecoin miners updated to SegWit capabilities in May 2017. For that reason alone, it will always hold value among the community. Final Thoughts: Bitcoin Mining vs Litecoin Mining. They are a very resilient community that has passed the test of time. Worst Crypto. 1 Bitcoin = 0.0034 Litecoins. Litecoin quickly emerged as the second largest digital currency after bitcoin, as measured by market capitalization. Bitcoin Magazine. Litecoin vs Bitcoin Comparative Table. We compared them in this altcoin showdown. When Litecoin first launched in 2011, it was said that “if bitcoin is digital gold, then litecoin is digital silver”. Litecoin was meant to become the crypto ‘silver’ since Bitcoin is the ‘gold’. Litecoin was launched in 2011 by former Google engineer Charlie Lee, who announced the debut of the "lite version of Bitcoin" via a posted message on a popular Bitcoin forum. From its founding, Litecoin was seen as being created in reaction to Bitcoin. bitcoin vs. litecoin Bitcoin and Litecoin are both cryptocurrencies. Litecoin, or "LTC," is the world's second most popular cryptocurrency after Bitcoin and the third most valuable cryptocurrency overall. Bitcoin’s anonymous creator, who goes by the name Satoshi Nakamoto, describes in forum posts how he was able to solve the notorious double-spend issue that plagued all previous digital currencies. On the other hand, merchants can always opt to accept transactions without waiting for any confirmation at all. Between 74-89% of retail investor accounts lose money when trading CFDs. SHA-256 is generally considered to be a more complex algorithm than Scrypt, while at the same time allowing a greater degree of parallel processing. The coin has enhanced capacity, higher supply limits, and faster block generation than Bitcoin. LTC 14,673,009,164. Users of either currency should, therefore, have no difficulty purchasing low-priced goods or services, regardless of how high the general price of an undivided single Bitcoin or Litecoin may become. In the Litecoin vs. Ripple battle, you want to remember that this is not the year 2017 when Litecoin joined the league of successful coins and surged close to 5000 percent in 12 months. This is a mathematical equation that miners solve. Bitcoin can carry out 4-7 transactions per second, with confirmation taking 10 minutes. Although making money wasn’t the original idea for cryptocurrencies, that’s what many buyers and sellers use them for, not least because almost all have spiked in value in recent months. Bitcoin utilizes the SHA-256 mechanism. The double-spend issue was a technical limitation. Bitcoin Wiki. In November 2013, IBM executive Richard Brown raised the prospect that some users may prefer transacting in whole units rather than in fractions of a unit, a potential advantage for Litecoin. Yet even assuming this is true, the problem may be solved through simple software changes introduced in the digital wallets through which Bitcoin transactions are made. The Motley Fool. Bitcoins vs. Litecoins – ist ein Kampf wirklich nötig? Litecoin vs Bitcoin – The Difference. The security of such zero-confirmation transactions is the subject of some debate.. Interestingly, this faster generation rate matches the increase in total supply versus Bitcoin. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com, PayPal Launches ‘Checkout with Crypto’ – Facilitates Purchases with Bitcoin, Ethereum, Litecoin, and More. We also reference original research from other reputable publishers where appropriate. Litecoin was created in 2011 by a Google employee Charlie Lee. This information is then re-added as a separate structure at the end of the transaction. If you do, the money will be lost. As a crypto investor, it’s vital to understand the differences between Bitcoin vs Litecoin. Litecoin vs Bitcoin: Transaction speed. Litecoin (LTC), which is known as the silver to gold of Bitcoin, has become a big cryptocurrency since 2018. You can convert litecoins to bitcoins, and vice versa—similar to the way you can exchange fiat currencies, like changing dollars into pounds, or yen into euros. Accessed March 10, 2021. Since both of these cryptocurrencies came into existence during the beginning of the cryptocurrency market, there are many similarities. The current reward for miners on Bitcoin’s blockchain is 6.25 BTC. For example, both coins utilize Segregated Witness (SegWit). 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 … The two have a lot in common, they are both crypto currencies that are decentralized. Bitcoin vs. Litecoin: An Overview Cryptocurrency definition. Similarities Between Bitcoin and Litecoin. Litecoin, despite being claimed to be the ‘silver coin’ of Bitcoin’s ‘gold coin’, both Litecoin and Bitcoin run around a particular set of differences in spite of having the same foundation. However, Bitcoin Cash i… Litecoin vs Bitcoin Cash. Litecoin was created as one of the first forks of the Bitcoin blockchain. 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010. The main focus of this interest has been Bitcoin, which has long been the dominant name in cryptocurrency—not surprising since it was the first digital money to really catch on. For a long time, that was the case. Like Bitcoin, Litecoin is designed to halve mining rewards approximately every four years. How Much of the World's Money is in Bitcoin? Moreover, while new Bitcoin Cash’s blocks are added every 10 minutes, Litecoin blocks generation time is set to 2.5 minutes. There are two reasons for this. The network is much faster than Bitcoin with developers listing it at 28 transactions per second. When the hard forks occur, those holding Bitcoin receive an equal number of the new forked coin such as Bitcoin Cash, Bitcoin Gold or the upcoming fork into Bitcoin Segwit2x (B2X). Bitcoin’s average transaction confirmation time is a little over 9 minutes per transaction, whereas Litecoin’s is roughly 2.5 minutes per transaction. Litecoin Wiki. Unlike Bitcoin, Litecoin’s consensus mechanism is a memory-hard, scrypt-based mining PoW protocol. Dogecoin is a peer-to-peer, open-source cryptocurrency that is categorized as an altcoin. Litecoin is cheaper per coin than Bitcoin, which helped create silver and gold nicknames and the relationship between the two crypto assets. Since both are leading, and highly liquid cryptocurrencies, there is generally no problem in swapping one for the other. Litecoin confirms a block every 2.5 minutes. Somer G. Anderson is an Accounting and Finance Professor with a passion for increasing the financial literacy of American consumers. 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