A Brief History of Bitcoin and Litecoin
Countless people across the world are familiar with Bitcoin, the first modern cryptocurrency that emerged in 2009.
Bitcoin remains the most popular and well-known digital asset due to its high price, reputation, and notoriety. Fewer, however, might know that Litecoin was a Bitcoin fork and ranks as one of the oldest ‘altcoins’ in the crypto ecosystem.
Founded in 2011, Litecoin is based on the same underlying blockchain and consensus mechanism (PoW) as Bitcoin. The coin was founded by former Google engineer Charlie Lee, who announced his creation as the “lite version of Bitcoin.”
What are the differences between Bitcoin and Litecoin?
While Bitcoin and Litecoin have many similarities, there are some stark differences between the coins. The biggest difference between the cryptos is the hashing function. Bitcoin relies on SHA-256 while Litecoin employs Scrypt. Scrypt does use SHA-256 but incorporates much higher Proof-of-Work (PoW) memory requirements.
The bottom line is tht Bitcoin and Litecoin are still vastly different cryptocurrencies, which means they each have some unique attributes and features beyond hashing functions alone.
At first glance, the biggest difference between Bitcoin and Litecoin is market capitalization. The market cap refers to the total value of all mined coins (coins in circulation).
As of late September 2022, Bitcoin’s market cap sits at around $372,537,000. Litecoin’s is vastly less, resting at just about $3,826,000. Bitcoin’s massive size still dwarfs all other cryptocurrencies, which makes the disparity between the two coins as something that would be expected.
The distribution – or the total number of coins that can be mined – is another notable difference between Bitcoin and Litecoin. A max 21 million Bitcoins can be mined, while a maximum of 84 million Litecoins can be mined.
As of late September 2022, about 91% of all Bitcoins are in circulation, with just about 1,835,137 BTC left to mine. About 85% of all Litecoins have been mined, which means there’s roughly 12,716,000 left to mine.
Litecoin was designed to see its last coin mined about the same time as Bitcoin’s, which will occur sometime in 2140, according to current estimates. While many might assume Litecoin has the advantage since there’s more coins the network can accommodate, supply and demand principles still hold true in the crypto world. Bitcoin’s smaller supply is generally more appealing to investors.
Transaction speeds, while much faster than in the traditional banking world, still do differ between both coins. A Bitcoin transaction takes about 10 minutes based on the block confirmation time which is also subject to change due to traffic and network activity.
Litecoin, designed for swifter transactions, usually takes about 2.5 minutes. Speeds with Litecoin are also helped as the network is much less congested than Bitcoin’s. With any coin, the faster the network is able to process payments, there’s much less of a possibility transactions get stuck waiting for miners to work on them.
Litecoin’s benefits are faster transaction speeds, a cheaper price (which means investors can buy more), and lower transaction fees than Bitcoin. Litecoin continues to grow in notoriety and usage as more Litecoin casinos open up.
Bitcoin’s advantages include greater purchasing power, a higher overall valuation, and a much more limited supply than Litecoin.
Which Is Right For You?
This comes down to personal preference. Both coins are great investment opportunities as they have been around for many years and have a strong reputation. Those looking for a coin with more purchasing power should opt for Bitcoin. Those interested in making fast transactions at a low cost should opt for Litecoin.
You can’t go wrong with Bitcoin or Litecoin. Before making a choice, be sure to understand the benefits and drawbacks of both to ensure you pick the coin that suits your needs and desires the best.
Litecoin is better than Bitcoin for those interested in cheaper transactions that execute at a faster rate than Bitcoin. Litecoin is also advantageous for investors with less capital who are interested in buying a stable crypto.
The odds of Litecoin overtaking Bitcoin are extremely slim, due to the massive price disparity between both coins. However, we at dappGambl do see strong prospects for Litecoin moving forward, with a peak trading price of at least $4200 in 2031, if all factors remain constant.
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