That means the underlying process by which both cryptocurrencies are mined—that is, generated, authenticated, and then added to a public ledger, or blockchain—is fundamentally similar (though not exactly the same, as we will see below). Making the decision to jump into the world of cryptocurrency mining is not an easy one. As mentioned, Bitcoin is the original blockchain that began to operate in 2009. The two cryptos may seem similar, but they are actually quite distinct in their market acceptance and technical mechanics. Litecoin’s belief system is the same as Bitcoin’s only seeking to do so at a slightly faster speed and transaction rate. The first reason is because Litecoin blocks generation time is approximately 2.5 minutes, which is four times faster than those of Bitcoin Cash which takes about 10 minutes. Litecoin (LTC), which is known as the silver to gold of Bitcoin, has become a big cryptocurrency since 2018. Litecoin Wiki. These are hardware systems that, unlike the simple CPUs and GPUs which came before them, can be tailor-made for mining Bitcoins. Securities.io ratings are determined by our editorial team. Litecoin was one of the earliest hard forks of the Bitcoin Core client. Accessed March 10, 2021. LTC 14,673,009,164. The significance of network hashrate is that the higher it is, the more secure the network is. Litecoin came into the market in the year 2011, whereas, Bitcoin came into existence in the year 2008. "What Is Cryptocurrency?" Entwicklungen beim Bitcoin-Minen. Litecoin confirms a block every 2.5 minutes. Securities.io is committed to rigorous editorial standards. Price (USD) BTC 56738.20. It remains to be seen whether the cryptocurrencies with which we have become familiar will retain their stature in the months and years to come. Bitcoin and Litecoin have seen their markets expand considerably. Currently, this cryptocurrency is one of the largest by market capitalization. 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. Only 84 million LTC exist, a mere four times the amount of the BTC supply. 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010. Both Bitcoin and Litecoin are cryptocurrencies. Accessed March 10, 2021. It’s common for platforms that offer Bitcoin support to also offer Litecoin support. Litecoin is technically very similar to Bitcoin but has a few crucial differences. Bitcoins vs. Litecoins – ist ein Kampf wirklich nötig? “Something like that could like destroy 90 percent of its value overnight. For example, both coins utilize Segregated Witness (SegWit). Participants operate directly, without the use of an intermediary like a bank, credit card company, or payment processing service. Like Bitcoin, Litecoin is designed to halve mining rewards approximately every four years. 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. Shortly after, on 21 July 2017, Bitcoin miners upgraded to Bitcoin Improvement Proposal (BIP) 91. 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. This compatibility has helped Litecoin remain a popular coin in the market, despite the emergence of tons of competition. Somer G. Anderson is an Accounting and Finance Professor with a passion for increasing the financial literacy of American consumers. In the past few years, public interest in cryptocurrencies has dramatically fluctuated. Also, it is safe to say that Litecoin is one of the first altcoins. Since Litecoin is currently unprofitable to mine, we can see that not only is Litecoin’s hashrate lower than Bitcoin’s (this could also be due to the fact that Bitcoin is more popular), but also that Litecoin’s hashrate has been decreasing while Bitcoin’s has been steadily increasing. Litecoin was created in 2011 by a Google employee Charlie Lee. On the other hand, merchants can always opt to accept transactions without waiting for any confirmation at all. On the other hand, we all know the BCH story. Bitcoin vs Litecoin – What’s Better? This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. It can ultimately result in lower profits for solo miners and cause the number of nodes to decrease. This is because both Bitcoin and Litecoin are divisible into nearly infinitesimal amounts. Photo byDmitry Demidko on Unsplash. Bitcoin remains the original digital money, and to many, its name is synonymous with cryptocurrency in general— practically a generic term, like Kleenex is to facial tissue. Rather than compete with Bitcoin directly, Lee sought to become the Robin to Bitcoin’s Batman. Bitcoin, which originated in 2009, is the dominant brand; Litecoin, founded two years later, is one of its leading competitors. It's important to understand cryptocurrency conversion because you can't send Litecoin to a Bitcoin address—even if it's in the same wallet—and vice versa. Lee had the notion that if Bitcoin was gold, then Litecoin was silver. By far the most fundamental technical difference between Bitcoin and Litecoin are the different cryptographic algorithms that they employ. As of March 2021, while litecoin is valued at $13.7 billion, bitcoin is valued at $1 trillion. Accessed March 10, 2021. Since the entire market cap of Litecoin is smaller than Bitcoin’s, there is less risk when trying out new software upgrades to Litecoin. If you do, the money will be lost. How to Choose a Cryptocurrency Mining Pool. It was at an all-time high in 2017, but with the crypto winter, things had slowed down. As a crypto investor, it’s vital to understand the differences between Bitcoin vs Litecoin.As the world’s first cryptocurrency, Bitcoin set the pace for our current blockchain revolution, However, Litecoin showed the market that you can build on the strengths of Bitcoin and add a little more technical capabilities without reducing the coin’s effectiveness or overall purpose. PayPal Awarded ‘Conditional BitLicense’ – To Support Spending & Trading of Bitcoin, Litecoin, Ethereum, and Bitcoin Cash, Investing in Litecoin (LTC) – Everything You Need to Know. However, when it was announced i… The most common method for Bitcoin mining consists of the use of Application-Specific Integrated Circuits (ASICs).. Accessed March 10, 2021. This has made it harder to decide which cryptocurrency to invest in. Much like silver, it’s more affordable than the premier option but still is a wise investment. In Lee’s version of cryptocurrency, technical aspects were beefed up. The network is much faster than Bitcoin with developers listing it at 28 transactions per second. Litecoin uses a slightly different Proof of Work mining consensus mechanism (transaction verification mechanism) than Bitcoin and it also has a faster transaction time. Accessed March 10, 2021. Notably, these mining rewards are the only time that new BTC enters the market. bitcoin vs. litecoin Bitcoin and Litecoin are both cryptocurrencies. These rewards decrease in half around every four years. In this article, Bitcoin vs Litecoin, we are going to compare in detail what makes each coin unique and what they share in common. Both Bitcoin and Litecoin are cryptocurrencies. Bitcoin’s average transaction confirmation time is a little over 9 minutes per transaction, whereas Litecoin’s is roughly 2.5 minutes per transaction. This has led many commentators to view Scrypt-based cryptocurrencies such as Litecoin as being more accessible for users who also wish to participate in the network as miners. Bitcoin is a digital or virtual currency created in 2009 that uses peer-to-peer technology to facilitate instant payments. Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Litecoin vs Bitcoin Cash. 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. Litecoin was created in 2011 by a Google employee Charlie Lee. She has been working in the Accounting and Finance industries for over 20 years. We may receive compensation when you click on links to products we review. Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice. Litecoin is one of the oldest cryptocurrencies and was launched in 2011, just two years after Satoshi created Bitcoin. This would not be the last time that Litecoin beat Bitcoin to the technical punch. But between Bitcoin Cash vs Litecoin, the later has been the champion most recently as its daily transaction volume is estimated to be from 20,000 – 30,000 every day. There are 84,000,000 LTC slated for issuance in total. As of March 2021, Bitcoin's market cap is $1 trillion, while Litecoin's is $13.7 billion. 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. These are two of the most popular cryptocurrencies in the world. For this reason, Litecoin adopts many of the features of Bitcoin that Lee and other developers felt were working well for the earlier cryptocurrency, and changes some other aspects that the development team felt could be improved. Beide Kryptowährungen basieren auf derselben Grundidee, auch wenn bei genauerem Hinsehen kleinere Unterschiede zwischen beiden Produkten erkennbar sind. For example, Bitcoin confirms blocks of transactions every 10 minutes. To increase the difficulty, the equation simply requires more zeros in the answer. The altcoin even experienced a degree of merchant adoption in its early years. 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. Litecoin was created as one of the first forks of the Bitcoin blockchain. Bitcoin Forum. These blocks are limited to 1MB in data. The current Litecoin mining reward is 12.5 LTC. For example, a merchant selling a product in exchange for Bitcoin would need to wait nearly four times as long to confirm the payment as if that same product were sold in exchange for Litecoin. 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 vs Bitcoin – The Difference. Litecoin is cheaper per coin than Bitcoin, which helped create silver and gold nicknames and the relationship between the two crypto assets. When we consider that Bitcoin’s market capitalization was barely $42,000 in July 2010, its current figure seems staggering. Notably, Litecoin is a hard fork of the primary Bitcoin protocol. You will come to understand how Litecoin’s arguably superior algorithm will likely forever be subordinate due to Bitcoin’s pervasive network. It’s scheduled to remain there until sometime around August 2023. Altcoins are on the rise, and LTC is an almost a decade-old stable coin. Making the decision to jump into the world of cryptocurrency mining is not an easy one. However, 2020 became the year of the crypto market’s revival, as the whole space surged once more. But, the next-gen altcoins are emerging almost daily which has taken the sector’s competition to higher levels. Litecoin Vs Bitcoin: Conclusion There is no doubt that Bitcoin is a much bigger cryptocurrency than Litecoin - both in terms of market capitalisation and general notoriety. Recovery may be possible if you have seed backups for the keys that let you access your account, but it's difficult. So, both Litecoin and Bitcoin Cash will eventually be forced to work on viable solutions to address the issue. Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled. Scrypt was built specifically to make it costly to perform large-scale custom hardware attacks. In 2011, Litecoin was created by Charles Lee, a Google engineer, with the aim of being the silver to Bitcoin’s gold. Divisible: Yes. We also reference original research from other reputable publishers where appropriate. Another of the main differences between Bitcoin and Litecoin concerns the total number of coins that each cryptocurrency can produce. Both Bitcoin and Litecoin rely on a Proof-of-Work consensus mechanism. As of March 2021, while litecoin is valued at $13.7 billion, bitcoin is valued at $1 trillion. "Litecoin." A fork is a divergence of existing open-source code to begin a related or new project. Today, money is created and managed by individual countries (e.g. The network is much faster than Bitcoin with developers listing it at 28 transactions per second. It wasn’t long before other developers took notice of Satoshi’s unique approach. Bitcoins vs. Litecoins Mining - die Unterschiede. Bitcoin Vs Litecoin. Total number of coins: The maximum limit is 21 million. Litecoin provides all the technical aspects of Bitcoin, and the longevity of being one of the oldest cryptocurrencies in the world. Litecoin uses a PoW algorithm as well. Accessed March 10, 2021. Litecoin was meant to become the crypto ‘silver’ since Bitcoin is the ‘gold’. Basis for Comparison: Bitcoin: Litecoin: Came into existence: In the year 2008. Similarities Between Bitcoin and Litecoin. In fact, the minimum quantity of transferable Bitcoin is one hundred millionth of a bitcoin (0.00000001 bitcoins) known colloquially as one “satoshi.”. Bitcoin Wiki. This second-layer protocol introduced the use of private payment channels to reduce blockchain congestion. 03.08.2017 09:34 | von Jakob Schwarz. Consequently, Bitcoin miners in recent years have utilized increasingly sophisticated methods for mining bitcoins as efficiently as possible. Although technically transactions occur instantaneously on both the Bitcoin and Litecoin networks, time is required for those transactions to be confirmed by other network participants. In the year 2011. The two have a lot in common, they are both crypto currencies that are decentralized. In cryptography, scrypt (pronounced “ess crypt”) is a password-based key derivation function created by Colin Percival, originally for the Tarsnap online backup service. The market has drastically changed since then. They are designed to occur every ten minutes. It definitely pays to get involved early in the launch of a new coin. For a long time, that was the case. In this video I am gonna break down the Bitcoin vs Litecoin and at the end I will show you why I bought as much Litecoin as I did recently. It has a confirmation time that 4 times faster, with the average block time of 2 minutes 19 seconds. "Satoshi (Unit)." Litecoin beat BTC to the punch on this upgrade. Trading involves risk which may result in the loss of capital. Litecoin vs. Bitcoin Litecoin (LTC) and Bitcoin (BTC), two of the more popular cryptocurrencies in terms of value and influence, are often compared to one another. Photo byDmitry Demidko on Unsplash. SegWit allows the network to split transactions into two segments. 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