Bitcoin vs Litecoin – Compare & Learn which Cryptocurrency is Best for InvestmentLast Updated Date: Nov 16, 2022
In this article on Bitcoin vs Litecoin, we have shared an in-depth overview of how these trading pairs are best over another.
Bitcoin trading continues to emerge as the most favorite topic among crypto-traders.
With every passing day, stories about Bitcoins are making the headlines. Meanwhile, another famous name has entered the game- the Litecoin.
Litecoin is also a popular crypto-currency, no wonder. Both Bitcoin and Litecoin are closely linked. But it also becomes the primary reason behind this popularizing battle of Bitcoin vs Litecoin.
There are lots of things about these trading pairs that you must know.
Of course, it is necessary to have a proper overview of your upcoming trading instrument before you knock it.
What is Bitcoin?
It’s no surprise that Bitcoin trading subject will last for many years. After all, the way Bitcoin has pioneered the industry is truly impressive.
In 2020, the dramatic rise in Bitcoin’s price was witnessing the potential of this digital currency. It is still one of the most popular options among traders.
Bitcoin utilizes blockchain technology. But it is surprising that the person who has designed it was a mysterious personality for a long time.
Later, Satoshi Nakamoto came forward as the founder of Bitcoin and in 2009, introduced the first digital currency to the world. Now, Bitcoin was completely a new thing for the people.
People found it a great medium of exchange through which they could make transactions worldwide without worrying about the physical currency that varies from one country to another.
Though, Bitcoin trading is rather similar to buying or selling assets on other trading platforms.
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What is Litecoin?
Litecoin is a globally accepted digital currency that also uses blockchain technology to make the transactions.
The currency was formed in 2011 by Charlie Lee (the former Google engineer) that later grew popular.
Though Litecoin isn’t a direct competitor of Bitcoin, but you can view it as a variation of it.
Litecoin doesn’t use the same blockchain technology as Bitcoin does. Still, the transactions and transfer speeds are quite faster in Litecoin.
Litecoin is also a decentralized currency and runs on open-source software. Year by year, Litecoin is also evolving as the most striking option.
In particular, after a big rise in 2017, when Litecoin observed an 8200% growth, the popularity of Litecoin skyrocketed. Within a year, Bitcoin prices grew from Rs 321.37 to Rs 26361.42, which is a big number.
Hence, both currencies continue to surprise us with their mind-blowing performance and unbeatable growth rate. Still, at various points, they are different about which we will discuss below-
Bitcoin vs Litecoin – Technology
Both Bitcoin and Litecoin are technology-based platforms. Still, Litecoin is comparatively faster due to its “Scrypt” algorithm.
Bitcoin still follows traditional SHA-256 algorithm, which brings difficulty in mining. Litecoin algorithm is faster and capable of producing four-time as Bitcoin’s coin producing power.
For example- Bitcoin produces one coin in every 10 minutes whereas Litecoin takes only 2.5 minutes on every coin. These produced coins are then added to the blockchain.
However, Litecoin and Bitcoin use a different algorithm; their computing tasks are accomplished by “Miners.”
On completing one block, 12.5 BTC is rewarded to the miners in Bitcoin mining, and 25 Litecoin is rewarded on every verified block in Litecoin.
Also, Bitcoin mining tasks are comparatively expensive due to costly setup and energy-consuming devices.
But Litecoin has kept it fairly cheaper due to its ‘Scrypt’ Technology integration. Also, the possibilities of errors are fewer in Bitcoin as compared to the Litecoin.
Hence, in terms of technology, Litecoin appears to be a winning trading option.
Bitcoin vs Litecoin – Investment
In terms of investment, Bitcoin has gained a lot of traction as compared to the Litecoin. Traders are generating massive income from the crypto-currency investment.
If you look at the price of both, Bitcoin was around Rs.7000 by the end of June 16, 2013.
At the same time, Litecoin was around Rs.140, and if we compare it with their current price, the difference is surprisingly huge.
And there’s nothing wrong to say that both Litecoin and Bitcoin have captured immense popularity due to their rising prices.
Though many people also call it an effect of the investment bubble that after making a ‘higher high’ falls from its peak, very fast!
Just like a real bubble burst, the prices of such assets quickly go down. It happens in both Bitcoin and Litecoin.
However, in terms of investment value, bitcoins are undoubtedly more expensive as compared to the Litecoin, which is quite new.
Still, we can’t forget that the future is uncertain. It is difficult to predict whether Litecoin will be more valuable or Bitcoin will be an outperforming asset.
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Bitcoin vs Litecoin – Transaction Processing
Which crypto-currency takes more time in transaction processing is another vital point. Transaction processing means the total time a transaction takes for the confirmation.
Bitcoin transaction takes 10 to 11 minutes for the confirmation- though it can vary sometimes. At the same time, Litecoin takes hardly 2.5 minutes for the final confirmation.
This dramatic difference makes it very-clear that Bitcoin takes more time for transaction processing as compared to the Litecoin.
Though it also provides Litecoin with a competitive edge as modern businesses dislike delays. It’s no surprise that Litecoin can appear to be an attractive option.
Compare Bitcoin & Litecoin – Total Coins
The total coins available at Litecoin and Bitcoin also come up as a debatable subject.
Bitcoin has 21 million coins, and a big percentage has already been purchased. Whereas Litecoin have 85 million coins, and a big portion is still empty.
However, we can’t forget that one Bitcoin values away more than the value of a single litecoin. In a nutshell, one coin value of Litecoin is comparatively less.
Yet, litecoin continues to obtain a competitive edge because the lower price of coins indicates a buy signal for medium to small level traders.
Luckily if the demand for Litecoin rises, prices will automatically surge, which yield profits for traders.
However, Litecoin prices are increasing but at a slower rate than we can’t regret.
Still, the future is uncertain. It is also possible that Litecoin instantly catches a new trend and outperform every trading pair in the market.
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Bitcoin vs Litecoin – Scalability
In terms of scalability, both Litecoin and Bitcoin, to some extent, appear to be dominating each other.
If we consider the past performance of both Bitcoin and Litecoin, so there’s a no big difference between Litecoin and Bitcoin.
Still, if we consider the transaction speed and fees related factor, Litecoin takes the top position because it is much faster, reducing time and cost.
On the other hand, Bitcoin still relies on the traditional algorithm; hence in future, this can turn into a big drawback as Litecoin demands are likely to surge.
Due to the traditional algorithm, Bitcoin struggle with a transaction that may impact its scalability.
On the other hand, lower transactions and faster “Scrypt” algorithm highlight the booming performance of Litecoin.
At present, both litecoin and Bitcoin are emerging with a similar scalability improvement. Although, it is still unclear which one will amaze us in future.
Comparison of Bitcoin and Litecoin – Profitability
Profitability is the most critical factor and can be a game-changer because this vital thing makes Bitcoin a steady player in the market.
Despite the fact that Bitcoin uses a traditional algorithm that makes it more expensive and time-consuming, still in terms of profitability, Bitcoin is an ever-evolving performer.
Profitability is solely based upon the miners. If the network has a great number of miners for crypto-currency mining, it will be a reliable and more gainful option.
Even though Litecoin’s algorithm is faster, still not so-many miners are willing to become members of its mining task because of lower price.
Miners are ready to invest higher and ready to put extreme efforts if the return value is higher.
It’s no surprise that Bitcoin meets their demand since they know that after intense efforts they will collect one Bitcoin which values a lot more than any crypto-instrument.
It attracts more miners which makes Bitcoin more reliable and profitable as compared to the litecoin.
Bitcoin vs Litecoin – Conclusion
In the end, we have discovered that litecoin is performing brilliantly in the market as per the business perspective.
Still, in terms of profitability, Bitcoin is evolving as a reliable and more profitable option for traders.
Though in terms of scalability, there is a tie between both options. Yet in terms of demands in the general market, litecoin appears to be a strong player.
If you are a trader willing to obtain a clear insight between litecoin and bitcoin, then, of course, it is still an unclear subject.
Bitcoin is currently doing great in the market. Also, lots of miners pooled in its network to make it a reliable option.
On the other hand, litecoin can be a risky option because not so many miners are available for Litecoin mining.
If Bitcoin figures out its transaction problems and brings changes in its algorithm, chances get increased that Bitcoin will outperform every option in the crypto-industry.
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