It was hard to imagine that a cryptocurrency like Bitcoin could exist before it entered the market. It was a completely new currency concept when it first came to market in 2009. Its initial value was very low. However, it gained tremendous attention and value over the next ten years. Bitcoin has gained many admirers over the years, and this wasn’t an accident. Bitcoin’s value is really high, and many people have become rich from Bitcoin mining.
The Litecoin, on the other hand, was created to improve Bitcoin. It was designed by Charlie Lee, an inventor who believed there were things that could be better. This disagreement between Bitcoin users led to the splitting of Bitcoin into two. This is known as the hard fork, and occurred in November 2011. This was the moment that Litecoin was created. It was an answer to all the negative aspects of Bitcoin. Both currencies are like rivals who try to be faster, more efficient, and richer than the other. The race is close, we must admit. These are some facts that may help you better understand their positions in the market.
The main characteristics of both
To determine which coin is best, you need to familiarize yourself with each one. Keep in mind that crypto-currencies do not rely on outside factors like the political situation or the legal mechanism of the state. They rely instead on the network’s cryptographic integrity. Bitcoin transactions take ten minutes on average, while Litecoin takes two and a quarter minutes to complete. Litecoin is slightly faster.
Bitcoin’s supply limit is twenty-one millions, while Litecoin’s is eighty-fourmillion. These numbers may not be important to you right now but they will help you make informed decisions about Bitcoin and Litecoin’s current positions. According to protocol, the reward (new currency), gets halved every four years. This means that it will eventually be zero. The limit should not be exceeded soon so that all Bitcoin enthusiasts are safe. The total supply of bitcoins is nearly 21 million.
The Bitcoin value is far higher than Litecoin in terms of value. One Bitcoin is currently worth 8,889.00 US Dollars, while Litecoin is worth only 61.04 US Dollars. Blockchain technology is the backbone of Bitcoin. It is a digital record of all trades. Nodes are the computers that store these records. Transactions are performed without banks fees or worrying about exchange rates.
One user can send bitcoins to another user by verifying their trade. This means that the sender must have the amount to send it. Once the trade is approved, the information gets added. Blocks are transactions that are grouped together, and then added to the blockchain. Mining is the process of verifying blocks by nodes. It results in more currency. This is a costly process that requires a powerful computer to support it. It takes about ten minutes to add blocks to the blockchain, which is quite slow.
Mining for Litecoin is done using script rules, which can be up to four times faster than traditional mining. It uses equipment made by ASIC (application-specific integrated circuit) miners.
This is why Litecoin seems to be growing in popularity and slowly increasing its value. Litecoin’s progress has been steady so far. Although cryptocurrency is not yet widely accepted as money, there are companies that will accept it. Uber uses Litecoin to pay for its services. This is a big win because of its popularity and ease of use. It takes less time than Bitcoin and is more useful in real-time situations.
Although Litecoin is a stable and valuable currency, its future development remains uncertain. There are no plans for Litecoin’s future and many still believe it is a shadow of Bitcoin. Litecoin needs to be more marketing-focused as they are not well-known enough. It could be promoted with greater marketing to attract more people to it and help them spread the word.
Experts who are familiar with cryptocurrency and the Litecoin believe that the Litecoin’s value will rise to $1,200 over the next five-years. It can reach $8,000. If you look at the bigger picture, which is a period of one decade. The predictions for Bitcoin, on the other hand, are more optimistic – they range from $100, 000 to one million dollars.
Both want to reduce the time required for one transaction. Both use Lightning Network, which is an outside verification process that speeds up transactions. This system allows the user to create small networks (mini), which are also known by the payment channels. These transactions require smart contracts.
Some believe that Litecoin will cease to exist if Bitcoin speeds up transaction times. It can also go the opposite way – it could be the way to bring the two currencies closer together and make them work together.
In the end, it’s important to emphasize that nobody can predict the future of cryptocurrency. The steady progress we saw with Bitcoin may be repeated with Litecoin. It’s not easy to say. It is not easy to tell, but Bitcoin has managed to hold a steady position for almost 11 years. That is quite remarkable.