Which is Better, Bitcoin or Litecoin?

bitcoin or litecoin - which is better?

Bitcoin has faced growing competition from newer cryptocurrencies, one of which is litecoin. Bitcoin was first introduced around 2008 in a paper by Japanese Satoshi Nakamoto and rose to fame for the next few years while litecoin was launched in 2011.

According to its creators, litecoin could act as a secondary cryptocurrency to bitcoin, just as silver is a lower kind of precious metal compared to gold. As of this writing, litecoin has a market capitalization of around $75 million and is actually proving to be a rival of bitcoin, which is currently holding a market size of $4 billion.

What’s the Difference Between Bitcoin and Litecoin?

Since both are cryptocurrencies, bitcoin and litecoin share a lot of similarities. These lack a governing body that oversees operations and transactions, making them decentralized in nature. In addition, these digital currencies are often adopted by online merchants in order to incur lower transactions costs on payments.

One factor that makes litecoin lower in value compared to bitcoin is that there are only a total of 21 million bitcoins available while litecoin can reach up to 84 million based on its mining algorithms. Since these digital currencies are controlled by governments or central banks, the market factors of supply and demand are the ones determining their value.

With this, some analysts believe that litecoin can offer a psychological advantage to bitcoin, as consumers often prefer to have transactions in whole units instead of fractions. Litecoin also enjoys a faster speed of transaction compared to bitcoin, as the former takes only 2.5 minutes while the latter needs 9 minutes.

Bitcoin or Litecoin?

At the end of the day, the main difference lies in the mining algorithm for each cryptocurrency. Bitcoin makes use of the longstanding SHA-256 algorithm, whereas Litecoin makes use of a comparatively new algorithm known as Scrypt. This has significant implications on the computing power needed to mine the altcoins and the security associated per unit, making bitcoin the more superior alternative in this regard.

  • schoolboyerror

    *NOT controlled by government

  • Kirk Hilles

    I’ve been a harsh critic of alt-coins in the past and I stand by that now. You want to always invest in the “winner”, not 2nd place+. You don’t want the thing that is “just like Bitcoin”. You want Bitcoin. Look at the price. Past 365 days Market Cap. BTC – started $6B-$8B Peak, now down to $3.3 Billion (45% drop from start, 59% from peak). LTC – started $350M (also peak), now down to $56 Million (84% drop). Doggy-style coin? $45 Million peak down to $11 Million (76% drop). NXT? – $20M Start, $80M Peak, now down to $9.3 M (53% drop from start, 88% from peak)

    Only a fool believes that “Dash” to “Stellar” or “Bitshares” or “MaidSafeCoin” will have any other long term performance. BTC is the only one you should be touching.

    • FreeJack

      Except that an option like Litecoin doesn’t have a Satoshi Nakamoto, who mined almost 1 million Bitcoin in its first year of existence and still has it, to this day. That’s 5% of the LIFETIME supply of the coin in the hands of a totally anonymous recluse, whose intentions for it are completely unknown.

      It’s about doing your due diligence.

      • Kirk Hilles

        Due Diligence? Umm… of course, I knew that just as every major investor in BTC knows that. It doesn’t change anything. If he decides to sell, there will be a short term price drop, but no reason to believe in a long term decline. Doesn’t change the facts – Alt Coins have dropped from their peaks more rapidly and will continue to do so. Doggy-style coin is now 7th and will continue to drop. Litecoin has and will drop as well – people are only interested in Litecoin as a mining alternative. Big Name companies accept BTC, not altcoins.

        I mean, Litecoin peaked at nearly a $1B Market Cap and now is worth only $56 M. It’ll be non existant in 5 years.

        • FreeJack

          A short term price drop…lol. I think you vastly under-estimate the impact that much Bitcoin would have on the markets. It would clean out every order book on every exchange and utterly crater the price, which would then cause a massive loss of confidence…and the longer we go without him doing it, the bigger the impact will be, because the more people will be affected by it.

          People are not just interested in Litecoin as a mining alternative. They’re interested in Litecoin as a BITCOIN alternative…because of the combination of liquidity and exchange volume, its transaction confirmation speed, and the fact that it doesn’t have Bitcoin’s baggage (the Satoshi stash, chief among them).

          People need to know the potential impact that a Satoshi sell-off would have, before they get involved with Bitcoin…and they need to know that there is a perfectly viable and strong alternative, in Litecoin.

        • diakonos

          Funny how a year later Litecoin has not only NOT dropped but has a market cap that’s 2.65x what it was last year. Your ability to predict what these other alt-currencies will do seems lacking.

          • Kirk Hilles

            Eh. I stand by it. Obviously if I were able to accurately predict the movement of currencies and such, I wouldn’t be spending my time posting those predictions on boards :).

            Of course, Bitcoin has doubled since I posted that, so keep that in mind. Litecoin is no longer #2 in Market Cap.

        • 750M market cap now lol

  • Thank you for this side by side comparison. Litecoin has a lot of growth potential alongside Bitcoin. With Litecoin’s halving arriving in the coming months it will be a greater competitor indeed.

  • Mu Geistlicht

    To say that Bitcoin is better than Litecoin simply because their choice of hash makes no sense. Which one is the best cryptocurrency currently has no definitive answer. Bitcoin is the elephant in the room but not the only animal in the jungle.

    Take a look at Peercoin. It is safer by every mean. Better? Depends.


    litecoin is next bitcoin in 2020 years…

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