Investing in cryptocurrency is the current talk of the town and a lot of people are showing great deal of interest in investing their money on various currencies available in the market. Out of all the cryptocurrency which we can see now days Bitcoins and Litecoins are the two most important and popular currency is available. Litecoins are particularly new in the segment, when compared to the duration of Bitcoins in the market. Litecoin was founded by Charlie Lee, who referred to the currency as ““silver to Bitcoin’s gold”. Both the currency holds almost the same characteristics apart from the fact that they have different codebase. They also have a huge tendency to fall and rise in the market.
You’ll be surprised to know that both of them complement each other as well. The original mandate stated that Bitcoins would be used as a medium of daily transaction. However, due to various scaling problems, it was not possible. However, it seems that Litecoin has done so.
So experts and a lot of people have high expectations from Litecoins and many of them are wondering if Litecoins can rise as fast Bitcoins and provide a huge turnaround or not. Let us discuss about this topic and meanwhile you can use Trading-Software which will help you to get satisfactory results in the market.
What is the difference between the two?
For those of you don’t know, there is a huge difference between the two currencies. So here are some important points that tells you what is the major difference between the two currencies.
Even though the technical transactions do occur instantly and simultaneously on both the currency, time required by the two is majorly different. It has been seen from data of Blockchain.info, that the average confirmation time for transactions over Bitcoins is 10 minutes per transactions made. However, this time can vary widely depending on the traffic on site. On the other hand, the time is roughly around 2.5 minutes when the transaction is made on Litecoin network. Litecoins, as a result are able to provide a much faster speed and efficiency than Bitcoins. Hence, the transaction time of both these two currencies is majorly different.
Another major difference includes in the algorithm of these two cryptocurrencies. Litecoin uses a algorithm which is known as Scrypt. But Bitcoin uses the traditional and long used SHA-256 algorithm. The Scrypt algorithm of Litecoin, as a result allows the users to access and join the network much easily when compared to Bitcoins. Difference in algorithm is mainly understood in the speed of mining.
If you notice closely, you’ll see that a big difference between these two cryptocurrencies is the market capitalization. The market capital of Bitcoin is near around $109 billion in 2018, whereas that of Litecoin is somewhere around $3.05 billion. But, the astonishing market cap of Bitcoin is phenomenal. Only in 2010, the market cap of Bitcoin was around $42,000. Even though the market of Bitcoins have fluctuated drastically over time, the gain in the market cap is impressive. Litecoin still has to prove it’s worth.
Bitcoin Vs Litecoin – Block Rewards
Both Litecoins and Bitcoins have a very specific coin limit attached to their market. This is simply the award which is given when a miner discovers a block of mine during the process. The total limit of Bitcoins is currently 21 million, but Litecoin comes with a cap of 84 million coins. So, when these limits are reached, there will be no new currency that will be mined.
However, the Halvening process is mandatory for both the currency. While Bitcoins are halved after every 210,000 Bitcoins have been mined, the same goes for Litecoins when the amount reaches to 840,000. Even though the numbers are different, each of the currencies have almost the similar framework in which they are operated.
What does the future hold?
So, this is the most important segment of the entire article. Will Litecoins rise as fast as Bitcoins? Well, the answer to this question depends on a lot of different factors. The initial ground gained by Litecoin was truly phenomenal. But just like other currencies, Litecoins also, did experience a significant fall in their market in 2018 and it managed to place itself in the 6th most valuable cryptocurrency.
A lot of people believed that Litecoins will be what seemed to be “Bitcoin 2.0” and during the early days when the currency was performing really well, many experts predicted that it will surpass Bitcoins to be the top currency in the near future. However, that future is still distant. Bitcoins have and continues to be the best cryptocurrency till date, with a $100 billion+ market cap. The aim of Litecoins to become “Bitcoin 2.0” still remains to be accomplished and quite difficult for now. Bitcoin has nothing more to prove. It is already a magnificent success, considering where it was in 2009 and the position it holds in the industry now.
But that is not the case with Litecoins. Litecoins still remains to be, as many experts would say, under the shadow of Bitcoins. It can only complement with the success of Bitcoins in the future but cannot overtake it to become the best in the market very soon. Even if it does, it will take a great deal of time before it happens.
Litecoin is nothing more but a “copy of Bitcoins”. Hence, Litecoins cannot, at this moment, rise as fast as Bitcoin and even if it does, the future remains to be unknown to a great extent.
Final Words – undoubtedly, both Bitcoins and Litecoins have a great deal of future ahead of themselves. With multinational corporations accepting cryptocurrencies as official medium of transactions, both the currency has a huge potential to grow in the coming years. If you are interested to trade in these currencies, then you can use a Trading-Software and successfully trade in cryptocurrencies of all kinds without too much of hassles in the long term.