Public interest in cryptocurrencies, especially Bitcoin, has increased substantially in the past several years and continues to fluctuate. They aren’t inspiring the same hype they did back in 2017, however, the interest has resurged again recently, and Bitcoin is making quite the comeback. Since Bitcoin has been the main name in the game for a long while now, it is the most well-known, however, now others are making their way up quite quickly.
Since Bitcoins first official appearance in 2009, other cryptocurrencies have entered the scene, some even being more favourable. Luckily, Bitcoin remains strong and stands its ground no matter what. Another name coming up close to Bitcoin is Litecoin. As of May 2020, Litecoin’s market cap is just under $3 Billion whereas Bitcoins is at $128 Billion.
So, which one is better, and why? What are the similarities? What are the differences? Let’s dive in and find out!
What is Bitcoin?
You’ve likely heard the word Bitcoin being thrown around a lot lately, especially with the popularity of it growing again. Though you may not actually know what it is or how to get it. You may also be wondering why all investors, big and small, are going absolutely insane over it. If you’re interested in joining the Bitcoin evolution, click here for exclusive access.
Bitcoin is a type of digital currency that can be traded for products, sold, or even bought into, much like a stock. Though much like other currency, Bitcoin has nothing to do with banks or other governments. A blockchain system is where Bitcoin is stored, traded, distributed, and created. Because of the fact that it was the first cryptocurrency to be met with widespread acceptance and interest, it has inspired plenty of new projects in the space of blockchain.
What is Litecoin?
Just the same as normal currency, there are also a plethora of different types of cryptocurrency. However, because it was a case of first in best dressed, Bitcoin gets all the honour and keys to the kingdom. But now there are several new kids in town, one of them being the wonderful Litecoin.
Like all of the cryptocurrencies worldwide, Litecoin isn’t issued by a government which is hard because people rely on it to be a secure form to access and store money. While it may share many similarities to Bitcoin and be based around its original format, it is still quite different. Litecoin was made to be used for cheaper transactions and to be suitable for everyday use.
At first glance, Bitcoin and Litecoin actually have a whole lot in common, but underneath the service, they are very different. The most obvious thing is that they are both decentralized cryptocurrencies. One very important thing is that they both share the similarity of proof of work ecosystems.
This means that they are mined is fundamentally similar, though they still aren’t exactly the same. For many investors, many parts of the transaction process are steadily similar between Litecoin and Bitcoin. They also both require a digital/cold wallet to be stored in order for transactions to be safe.
The biggest and most obvious difference between the two is the fact that Bitcoin and Litecoin offer entirely different market capitalization. Bitcoins market cap is more than a whopping 45 times larger than Litecoin, which only has a value of just under $3 Billion. Even though Bitcoins value is substantially lower than it was years ago, it is still miles ahead of Litecoin and all other digital currencies.
Another big distinction is the number of coins each one can produce. This is where Litecoin shines above Bitcoin. 21 Million coins can never be exceeded with Bitcoin, whereas Litecoin is able to accommodate up to 84 Million! They also have entirely different algorithms between the two choices and the main difference in algorithms between the two is the process of mining new coins.
While these two options are fantastic, there are also some new and great digital currencies becoming available recently. Within only a few months, the stature of cryptocurrencies can completely transform. It is very common to question if they will continue to retain their stature in the years and months that are still to come.