Litecoin vs. Bitcoin: What Differentiates Cryptocurrency?
Bitcoin is the most well-known and widely-used cryptocurrency, so people tend to be most familiar with it. However, as curious individuals begin to research cryptocurrency, they are often overwhelmed by the amount of cryptocurrencies out there. As of late June 2018, there are about 1,600 different cryptocurrencies, and more continue to pop up all of the time. To understand cryptocurrency exchanges, investing, and the industry as a whole, you need to understand how to compare Litecoin vs. Bitcoin and other cryptocurrencies.
Litecoin vs. Bitcoin: How Makes Them Different?
Litecoin and Bitcoin seem incredibly similar on the surface; they’re some of the most popular cryptocurrencies available. However, there are key differences between the two.
Bitcoin has the largest market capitalization in the cryptocurrency network at over $101 billion. Litecoin’s market capitalization is just over $4 billion. Clearly, Bitcoin has a lot more money invested in it, but it also got to this number quite rapidly. Bitcoin’s July 2010 market capitalization was just over $40,000. Bitcoin has seen incredible growth, but Litecoin has been growing steadily, too. Litecoin’s market capitalization was almost $1.5 million on June 1, 2017, and it increased by about 3.5x a year later. .
Transaction Processing Speed
Technically, the processing speed is instant when it comes to the user side of the transaction. You process the information and move on, but the blockchain ledger has to record the transaction still. The time it takes on each of the networks is significantly different. At the time of writing, Litecoin processes the transaction on an average of 2.7 minutes whereas Bitcoin processes the transaction on an average of 9.2 minutes. This processing speed is essentially the time it can take for an individual to receive confirmation on a transaction, and for now, that hasn’t been a big deterrent for Bitcoin users. However, moving forward with cryptocurrency technology, Litecoin’s faster processing speed can be a huge advantage.
Number of Available Coins
The Bitcoin network will never exceed 21 million coins, but Litecoin can have up to 84 million coins. The total amount of coins mined is seemingly inconsequential, as the market capitalization of each will determine their value per coin. However, most investors in the cryptocurrency space agree that coins with limited circulating supply stand to gain the most value.
Why Are There So Many Cryptocurrencies?
Bitcoin, the first cryptocurrency, introduced revolutionary technology into the world: blockchain. More cryptocurrencies evolved from Bitcoin by either altering the fundamental technology or the intended use of the cryptocurrency itself. Each cryptocurrency is different because of their intended purpose or vision of the founders. For example, the cryptocurrency Stellar focuses on cross-border transactions. While Stellar works to make those kinds of transactions cheaper, the cryptocurrency Zilliqa focuses on the issue of scalability on the blockchain, i.e. making it possible for more transactions to happen at a given moment.
Start Investing Today
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