Litecoin vs Bitcoin: What’s the difference?

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.” 

Distribution

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 Speed

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 possibility transactions get stuck waiting for miners to work on them. 

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.