Bitcoin VS Litecoin: How Does Each Cryptocurrency Compare?
Bitcoin is the largest and best-known cryptocurrency in the world. Another top cryptocurrency that is usually in the top 20 by market capitalization of Litecoin. Many people feel that both Bitcoin and Litecoin have similar properties. However, it is important to know the different functions that each of these coins offers. Here, we will take a look at how Bitcoin and Litecoin compare against each other along with their various advantages.
What is Bitcoin?
Bitcoin (BTC) is the oldest and largest decentralized cryptocurrency in the world. Conceived in 2008 and launches in 2009, Bitcoin currently has a market capitalization of about $1 trillion dollars. Bitcoin is currently available on dozens of cryptocurrency platforms along with payment services such as Bitcoin and Square.
How does Bitcoin work?
Bitcoin uses a function known as proof-of-work in order to validate transactions. Computers known as miners will compete to solve complex mathematical problems using an SHA 236 algorithm. The mining computer that can solve the math problem first is given the opportunity to validate a Bitcoin transaction. When the transaction has been validated, the mining computer receives BItcoin as compensation.
What is Litecoin?
Litecoin (LTC) was created in 2011 by Google engineer Charlie Lee. This decentralized cryptocurrency was designed to be a “lite” version of Bitcoin which could potentially provide faster transactions and lower coin prices. Using a precious metals comparison, Litecoin is seen as the “silver” to Bitcoin’s “gold.”
How does Litecoin work?
Litecoin uses a proof of work system much like Bitcoin. However, Litecoin uses what is known as the Scrypt algorithm that allows the Litecoin network to provide faster transactions versus Bitcoin. As of 2021, Bitcoin has transaction times of about 9 minutes while Litecoin has transaction times of about 2.5 minutes.
Advantages of Bitcoin over Litecoin
The biggest advantage that Bitcoin has over Litecoin is the security and the size of the network. If you are looking to secure lots of wealth, Bitcoin is going to be the best option because of the sheer size of the network which makes it almost impervious to a 51% attack that has destroyed smaller cryptocurrencies. For instance, if you are looking to store or move hundreds of thousands of millions of dollars in a cryptocurrency, then Bitcoin is going to be your best option.
Advantage of Litecoin over Bitcoin
Litecoin offers faster transaction times which makes it easier to handle frequent usage of the cryptocurrency. Also, the total circulation of Litecoin is 84 million versus Bitcoin’s 21 million. The higher total supply of Litecoin makes it easier to handle small value transactions. For instance, if you are looking to make 10 small transactions a day, then Litecoin is going to be a better option than Bitcoin.
Understand Bitcoin and Litecoin Functionality
Both Bitcoin and Litecoin offer excellent usage when it comes to different types of financial transactions. However, it is important to know when to use Bitcoin and when to make use of Litecoin. By understanding the functionality and advantages of each cryptocurrency, you will be able to make better cryptocurrency transaction and storage decisions.
REFERENCE:
https://www.investopedia.com/articles/investing/042015/bitcoin-vs-litecoin-whats-difference.asp
