Litecoin and Bitcoin are considered to be the two most widely used cryptocurrencies. A cryptocurrency is defined as a digital or virtual currency that is used for online transactions. These currencies use a cryptographic technology that prevents users from duplicating or counterfeiting. Most virtual currencies use a decentralized system. This means that no central regulator controls the money. In addition, a digital ledger called a blockchain is used to record transactions and identify ownership.
Bitcoin or BTC was the first digital coin to be established. Many other cryptocurrencies were created after BTC. Litecoin, or LTC, was the latest to follow in BTC’s footsteps and make its debut in the market. Soon after, other virtual currencies began to pop up, resulting in a multitude of options available today.
Which properties make Litecoin superior to Bitcoin?
Litecoin was developed by its founder to improve the flexibility and functionality of the very first crypto, Bitcoin. Even so, most people use BTC as compared to LTC. It may be because Bitcoin has a better foundation and most people are already using it for transactions in businesses. Most people are, however Buy Litecoin today, and the currency is catching up quickly.
LTC and BTC share different characteristics. Both use decentralized networks, for example. Both are obtained in a similar way by mining or exchanging from one user to another. Additionally, proof of ownership and transaction history for both can be found on a blockchain. Users mine these two coins every day. Hence, the two use a common system called halving, which reduces the number of coins in circulation.
Bitcoin. Physical bitcoins. Digital currency. Cryptocurrency. Golden coin with the bitcoin symbol on a white background. Stock vector illustration.
Litecoin was created as a larger version of Bitcoin. Hence, it has superior properties that make it a preferred investment over BTC. Some of these features are:
1) Enables a higher number of supply caps
Bitcoin and Litecoin both have a supply limit. When this limit is reached, no more coins will be produced. However, the upper limit of supply for LTC is higher compared to BTC. For Bitcoin, the supply limit is 21 million, for Litecoin 84 million. Therefore, until the maximum amount is reached, LTC will continue to satisfy a larger number of customers than BTC.
These enhanced LTC features are superior to not only BTC but some other types of cryptocurrencies as well. It has been mentioned several times by experts that Litecoin’s future could be brighter. Hence, many people today are considering LTC as opposed to other digital currencies.
2) Faster mining rate
Scrypt algorithms identify themselves as more accessible to users than BTC’s more complex system. LTC uses encryption, which makes mining a cheaper and easier digital currency. This factor then becomes one of the reasons LTC grows in popularity as the days go by.
The mining speed of LTC is also higher. A BTC is mined in 10 minutes while an LTC can be generated within 2.5 minutes. It was mentioned that this mining speed also affects the confirmation speed of a transaction. With BTC, it takes about 10 minutes to complete a transaction. However, for LTC it takes 2.5 minutes. This is almost four times faster compared to Bitcoin. This factor also increases the volume of transactions that LTC can process.
In addition, it is believed that LTC can be more beneficial for smaller tasks. This is because the transaction fees can be lower than for BTC.
Crypto prices change due to various factors such as competition, supply, demand or government policy. However, LTC maintains a lower price compared to BTC. This feature ensures that digital currency users can sell or buy more LTC for a much less amount than BTC.
3) Simplified mining algorithm
BTC and LTC have similar things in common Proof of work Idea. However, the cryptographic algorithm system used between the two is different. Bitcoin uses an older and more complex system, while Litecoin uses an improved system called scrypt. These two algorithms influence the mining speed of the coins.
BTC’s algorithm system makes it difficult for everyday owners and users to join a data mining network. Usually when a user needs to make changes to their system’s hardware in order to take over tasks in order to get paid in cryptocurrency. For those just starting out, Bitcoin’s system can be overwhelming and daunting to understand.
Meanwhile, scrypt from LTC uses solutions that do not require users to modify hardware systems to participate in the data mining process. Scrypt ensures that users can mine LTC using the graphics processing units or GPUs and the central processing units or CPUs of a device. These components do not require a powerful computer. Therefore, less energy is used when mining LTC.
Bitcoin was the first crypto ever developed. Therefore, it has firmly established itself in the market compared to other virtual currencies. However, one major competitor that is catching up today is Litecoin. This electronic coin was created as an upgraded version of BTC. The aim was to improve BTC’s processes and thereby increase efficiency. LTC therefore has more desirable functions than BTC.
One factor that makes LTC superior is that it takes less time to mine a coin than it does to mine BTC. Plus, LTC’s Scrypt algorithm makes mining easier and cheaper than BTC’s more complex system. Finally, unlike Bitcoin, Litecoin has a higher supply cap, which ensures that higher demand can be met.