Litecoin Vs. Bitcoin: What’s The Difference?

in News/Use Crypto by

Litecoin Vs Bitcoin: What’s The Difference?

Contrary to misconceptions, Litecoin cryptocurrency is not the first fork of Bitcoin. Those were the digital asset and the Namecoin payment system of the same name. Although this did not prevent Litecoin from winning the title of virtual silver. It is safe to say that 2011 was a turning point in the formation of alternative monetary units. After all, it was then that the beginning of the emergence of a significant number of digital assets based on Bitcoin open source, and after altcoins, the mining of which uses an algorithm that differs from the standard generation process developed by Satoshi Nakamoto (the creator of the first cryptocurrency).

The evolution of crypto active assets is based on the principle of natural competition. The value of altcoins is determined by different features, so the question is: what is better – Bitcoin or Litecoin, does not lose its relevance today. Although, virtual silver from the day of its foundation settled in the TOP-list of digital currency units and continues to hold positions. Moreover, with each drop in Bitcoin quotes, one can hear statements that Litecoin has every chance of becoming a worthy alternative to the first cryptocurrency.

Litecoin and Bitcoin Market Capitalization

Determining which is more profitable, Bitcoin or Litecoin, and taking only the indicators of market capitalization and the dominance index as a basis, we can conclude that Bitcoin is the undisputed leader of the world of cryptocurrencies. At the time of writing (December 24, 2017), the total value of the first digital asset is $ 241 billion. He surpasses the competitor, who settled in the fifth position, more than 16 times. The dominance index, however, varies from 43–44%. The fact that the Bitcoin rate is about $ 13,000 is impressive. This figure is not maximum and has undergone an adjustment after a record retracement of the mark of $ 20,000, but about 55 times higher than the market value of Litecoin ($ 250). It is difficult to understand why the first digital asset should not be a segment leader? After all, he has always been significantly ahead of and ahead of his many competitors in these indicators.

The speed and profitability of transfers Bitcoin and Litecoin

Bitcoin significantly loses its competitor in terms of the speed of remittances. The growth in the number and volume of transactions in the network of the first cryptocurrency caused the emergence of problems with scaling. As a result, it is often possible to see that the number of unconfirmed transfers amounts to hundreds of thousands. The throughput rate often drops to a critical point.

Litecoin many people mistakenly perceive as a test version of Bitcoin. In fact, it is a separate player in the market. This error can be partially explained by the fact that the SegWit algorithm was activated here much earlier. Due to this, so high speed of passing payments increased by 2 times. Moreover, the Institute of atomic swaps was successfully integrated, which allows replacing Bitcoin when performing mutual settlements in the remote mode.

What do we see on the Bitcoin network? Despite the introduction of the Lightning Network (processing of micro-transactions outside the main chain of the blockchain) and SegWit, the early likelihood of launching SegWit2X, the issue of fast transfer operations remains unresolved. However, these details do not give an answer to the question: what is better, Bitcoin or Litecoin? It is known that the services offered by third-party services allow making transfers using Bitcoin coins very quickly, without waiting for the standard 6 confirmations from miners. In addition, you can acquire debit Bitcoin cards to operate your crypto savings without any restrictions.

I’m a freelance writer and full-time curious person. My main interests are philosophy, politics, art, culture, science, and how they’re all interlinked. When I’m not writing, I’m fronting a band, producing records, and making videos. I’m also currently working on launching a YouTube channel that will focus on culture and politics. I think blockchain technology is fascinating because of the huge potential it has to revolutionise not only the financial sector, but society as a whole.