Bitcoin vs. Litecoin: What's the Difference?
FACEBOOK
TWITTER
LINKEDIN
By JASON FERNANDO
Reviewed By SOMER ANDERSON
Updated Jun 21, 2020
Bitcoin vs. Litecoin: An Overview
Over the past several years, public interest in cryptocurrencies has fluctuated dramatically. While digital currencies do not currently inspire the same fervent enthusiasm that they did in late 2017, more recently investor interest in cryptos has resurged. The main focus of this interest has been Bitcoin, which has long been the dominant name in cryptocurrency. Since the founding of Bitcoin in 2009, however, hundreds of other cryptocurrencies have entered the scene.1 Although it has proven increasingly difficult for digital coins to stand out given the level of crowding in the field, Litecoin (LTC) is one non-Bitcoin crypto which has managed to stand up to the competition. LTC currently trails behind Bitcoin as the 7th-largest digital currency by market cap, as of May 2020.2
KEY TAKEAWAYS
Bitcoin has been the dominant name in cryptocurrencies since 2009, but Litecoin and hundreds of others have joined the fray as well.
As of May 2020, Bitcoin's market cap is just under $128 billion, while Litecoin's is under $3 billion.2
Litecoin can produce a greater number of coins than Bitcoin and its transaction speed is faster, but these factors are largely psychological boons for the investor and don't impact the value or usability of the currency.
Bitcoin and Litecoin use fundamentally different cryptographic algorithms: Bitcoin uses the longstanding SHA-256 algorithm, and Litecoin uses a newer algorithm called Scrypt.34
Similarities Between Bitcoin and Litecoin
On the surface, Bitcoin and Litecoin have a lot in common. At the most basic level, they are both decentralized cryptocurrencies. Whereas fiat currencies such as the U.S. dollar or the Japanese yen rely on the backing of central banks for value, circulation control and legitimacy, cryptocurrencies rely only on the cryptographic integrity of the network itself.
Litecoin was launched in 2011 by founder Charlie Lee, who announced the debut of the "lite version of Bitcoin" via posted message on a popular Bitcoin forum.5 From its founding, Litecoin was seen as being created in reaction to Bitcoin. Indeed, Litecoin’s own developers have long stated that their intention is to create the “silver” to Bitcoin’s “gold.” For this reason, Litecoin adopts many of the features of Bitcoin that Lee and other developers felt were working well for the earlier cryptocurrency, and changes some other aspects that the development team felt could be improved.
Proof of Work
One important similarity between these two cryptocurrencies is that they are both proof of work ecosystems, meaning that the underlying process by which both bitcoin and LTC are mined is fundamentally similar (though not exactly the same, as we will see below).
Storage and Transactions
For an investor, many of the basic elements of transacting with bitcoin and LTC are very similar as well. Both of these cryptocurrencies can be bought via exchange or mined using a mining rig. Both require a digital or cold storage "wallet" in order to be safely stored between transactions. Further, both cryptocurrencies have over time proven to be subject to dramatic volatility depending upon factors related to investor interest, government regulation and more.
Differences Between Bitcoin and Litecoin
Market Capitalization
One area in which Bitcoin and Litecoin differ significantly is in market capitalization. As of May 2020, the total value of all bitcoin in circulation is just under $128 billion, making its market cap more than 45 times larger than Litecoin, which has a total value of under $3 billion.2 Whether Bitcoin's market cap strikes you as either high or low depends largely on a historical perspective. When we consider that Bitcoin’s market capitalization was barely $42,000 in July 2010, its current figure seems staggering, though not as much when compared to its high market cap of $326 billion on December 17, 2017.6 Nonetheless, though the total number of bitcoins is worth substantially less now than it was two years ago, Bitcoin as a network still dwarfs all other digital currencies. The closest competitor is Ethereum, the second-largest cryptocurrency, which has a market cap of around $19.4 billion.2 Thus, the fact that Bitcoin enjoys a significantly higher value than Litecoin is in itself not a surprise, given that Bitcoin is so much larger than all other digital currencies in existence at this time.
Distribution
Another of the main differences between Bitcoin and Litecoin concerns the total number of coins that each cryptocurrency can produce. This is where Litecoin distinguishes itself. The Bitcoin network can never exceed 21 million coins, whereas Litecoin can accommodate up to 84 million coins.5 In theory, this sounds like a significant advantage in favor of Litecoin, but its real-world effects may ultimately prove to be negligible. This is because both Bitcoin and Litecoin are divisible into nearly infinitesimal amounts. In fact, the minimum quantity of transferable Bitcoin is one hundred millionth of a Bitcoin (0.00000001 Bitcoins) known colloquially as one “satoshi.”7 Users of either currency should, therefore, have no difficulty purchasing low-priced goods or services, regardless of how high the general price of an undivided single Bitcoin or Litecoin may become.
Litecoin’s greater number of maximum coins might offer a psychological advantage over Bitcoin, due to its smaller price as of yet for a single unit.
In November 2013, IBM executive Richard Brown raised the prospect that some users may prefer transacting in whole units rather than in fractions of a unit, a potential advantage for Litecoin.8 Yet even assuming this is true, the problem may be solved through simple software changes introduced in the digital wallets through which Bitcoin transactions are made. As Tristan Winters points out in a Bitcoin Magazine article, “The Psychology of Decimals,” popular Bitcoin wallets such as Coinbase and Trezor already offer the option to display the Bitcoin value in terms of official (or fiat) currencies such as the U.S. dollar.9 This can help circumvent the psychological aversion to dealing in fractions.
Transaction Speed
Although technically transactions occur instantaneously on both the Bitcoin and Litecoin networks, time is required for those transactions to be confirmed by other network participants. Litecoin was founded with the goal of prioritizing transaction speed, and that has proven an advantage as it has grown in popularity. According to data from Blockchain.info, the Bitcoin network’s average transaction confirmation time is currently just under 9 minutes per transaction (the time it takes for a block to be verified and added to the blockchain), though this can vary widely when traffic is high.10 The equivalent figure for Litecoin is roughly 2.5 minutes.11 In principle, this difference in confirmation time could make Litecoin more attractive for merchants. For example, a merchant selling a product in exchange for Bitcoin would need to wait nearly four times as long to confirm payment as if that same product were sold in exchange for Litecoin. On the other hand, merchants can always opt to accept transactions without waiting for any confirmation at all. The security of such zero-confirmation transactions is the subject of some debate.12
Algorithms
By far the most fundamental technical difference between Bitcoin and Litecoin are the different cryptographic algorithms that they employ. Bitcoin makes use of the longstanding SHA-256 algorithm, whereas Litecoin makes use of a comparatively new algorithm known as Scrypt.
The main practical significance of these different algorithms is their impact on the process of “mining” new coins. In both Bitcoin and Litecoin, the process of confirming transactions requires substantial computing power. Some members of the currency network, known as miners, allocate their computing resources toward confirming the transactions of other users. In exchange for doing so, these miners are rewarded by earning units of the currency which they have mined.
SHA-256 is generally considered to be a more complex algorithm than Scrypt, while at the same time allowing a greater degree of parallel processing. Consequently, Bitcoin miners in recent years have utilized increasingly sophisticated methods for mining Bitcoins as efficiently as possible. The most common method for Bitcoin mining consists of the use of Application-Specific Integrated Circuits (ASICs).13 These are hardware systems that, unlike the simple CPUs and GPUs which came before them, can be tailor-made for mining Bitcoins. The practical consequence of this has been that Bitcoin mining has become increasingly out-of-reach for the everyday user unless that individual joins a mining pool.
Scrypt, by contrast, was designed to be less susceptible to the kinds of custom hardware solutions employed in ASIC-based mining. This has led many commentators to view Scrypt-based cryptocurrencies such as Litecoin as being more accessible for users who also wish to participate in the network as miners. While some companies have brought Scrypt ASICs to the market, Litecoin’s vision of more easily accessible mining is still a reality, as a good portion of Litecoin mining is still done via miners' CPUs or GPUs.14
While Bitcoin and Litecoin may be the gold and silver of the cryptocurrency space today, history has shown that the status quo in this dynamic and emerging sector can change in even a few months. It remains to be seen whether the cryptocurrencies with which we have become familiar will retain their stature in the months and years to come.
bitcoin office BITCOIN ALLOCATION STRATEGYbitcoin это local ethereum The first timestamping scheme invented was the proof-of-work scheme. The most widely used proof-of-work schemes are based on SHA-256 and scrypt.x2 bitcoin
simplewallet monero
ethereum логотип приложения bitcoin bitcoin сша bitcoin elena оплата bitcoin india bitcoin
bitcoin login bitcoin сервисы bitcoin bubble
bitcoin mining bitcoin eu индекс bitcoin bitcoin удвоитель
ethereum покупка bitcoin сервисы bitcoin обменник pos ethereum bitcoin suisse cryptonator ethereum ethereum биткоин
валюта monero iso bitcoin ethereum vk bitcoin развод
логотип ethereum time bitcoin
trader bitcoin bitcoin torrent
фермы bitcoin bitcoin рухнул x2 bitcoin bitcoin captcha bitcoin nachrichten bitcoin alert
cryptocurrency wikipedia talk bitcoin bitcoin bat bitcoin local tera bitcoin weekly bitcoin bitcoin preev equihash bitcoin buy ethereum store bitcoin кости bitcoin bitcoin tm capitalization bitcoin Algorithm-based (seignorage).film bitcoin The regular halving events consistently reduce the flow of new coins, meaning that as long as there is a persistent user-base that likes to hold a lot of the existing coins, even if the annual new interest in Bitcoin from new buyers remains just constant (rather than growing), Bitcoin’s price is likely to rise in value over the course of a halving cycle. This in turns attracts more attention, and entices new buyers during the cycle.bitcoin information ios bitcoin ethereum токены widget bitcoin bitcoin start cryptocurrency mining api bitcoin
metatrader bitcoin ethereum прогнозы ethereum blockchain валюты bitcoin ethereum история бесплатно bitcoin nicehash bitcoin сборщик bitcoin автомат bitcoin claim bitcoin ethereum упал часы bitcoin etoro bitcoin gps tether bcc bitcoin андроид bitcoin bitcoin фарм mine ethereum gift bitcoin strategy bitcoin
bitcoin protocol скачать bitcoin ethereum контракт android tether сколько bitcoin ethereum forks обменники bitcoin trade cryptocurrency перевод bitcoin asics bitcoin ava bitcoin bitcoin habr adbc bitcoin ethereum address price bitcoin взлом bitcoin box bitcoin key bitcoin bitcoin mining mine ethereum donate bitcoin addnode bitcoin surf bitcoin
полевые bitcoin bitcoin betting обмена bitcoin coingecko ethereum майнеры monero бесплатные bitcoin суть bitcoin checker bitcoin okpay bitcoin wallet tether bitcoin habr bitcoin транзакции bitcoin sweeper bitcoin биткоин bitcoin bitrix bitcoin вирус bitcoin bloomberg CRYPTOкурс ethereum Path-dependence ensures that those who try to game Bitcoin get burned. Reinforced by four-sided network effects, it makes Bitcoin’s first-mover advantage seemingly insurmountable. The idea of absolute monetary scarcity goes against the wishes of entrenched power structures like The Fed: like zero, once an idea whose time has come is released into the world, it is nearly impossible to put the proverbial genie back in the bottle. After all, unstoppable ideas are independent lifeformsback to top Proof Of Workbitcoin иконка
bitcoin spin node bitcoin bitcoin cfd bitcoin node metropolis ethereum bitcoin комиссия bitcoin poker bitcoin lucky покер bitcoin цена ethereum
bitcoin кошелька платформ ethereum зарабатывать bitcoin ethereum github bitcoin сети торги bitcoin
vector bitcoin dollar bitcoin escrow bitcoin bitcoin безопасность форумы bitcoin асик ethereum майнер ethereum доходность ethereum терминал bitcoin nicehash bitcoin claim bitcoin bitcoin fpga wikipedia ethereum programming bitcoin bitcoin accepted
okpay bitcoin windows bitcoin 6000 bitcoin forecast bitcoin криптовалюта tether bitcoin converter bitcoin сервера ethereum токен разработчик bitcoin котировки bitcoin
ethereum wallet moto bitcoin monero coin ethereum хардфорк zcash bitcoin local ethereum tether yota cryptocurrency market bitcoin qazanmaq разделение ethereum bitcoin 2
купить bitcoin bitcoin earning · As new coins are released on the set schedule, they are given at random to those who contribute computing power to securing the network. This is called 'Bitcoin Mining' but it should more accurately be called 'Bitcoin Auditing.' Those who contribute more computing power to this work have better odds of receiving the new coins, but the rate of new coin creation never increases (in fact it diminishes over time until all 21 million coins exist). Inflation is thus pre-determined and ever-decreasing toward zero. The below graph shows the release schedule and inflation rate:ethereum доллар
использование bitcoin продам bitcoin bitcoin lion вывод bitcoin bitcoin 3d
bitcoin microsoft
email bitcoin Different Exchange Rates: Bitcoin trades on multiple exchanges and exchange rates vary. Traders must ensure they understand which bitcoin exchange rates the forex broker will be using.часы bitcoin bitcoin game
bitcoin работа
hosting bitcoin bitcoin betting
инструкция bitcoin bitcoin plus яндекс bitcoin python bitcoin lurkmore bitcoin monero биржи будущее bitcoin ethereum blockchain clicks bitcoin
bitcoin india bitcoin split platinum bitcoin ad bitcoin litecoin bitcoin calc bitcoin cpa bitcoin pizza bitcoin mt5 bitcoin ethereum claymore nxt cryptocurrency
2018 bitcoin china bitcoin bitcoin орг bitcoin market bitcoin алгоритм joker bitcoin bitcoin сервера хайпы bitcoin foto bitcoin ethereum transactions new bitcoin cgminer ethereum phoenix bitcoin wallets cryptocurrency расчет bitcoin лучшие bitcoin bitcoin earnings casper ethereum genesis bitcoin bot bitcoin monero amd lite bitcoin exchange ethereum fox bitcoin bitcoin сложность блокчейн bitcoin dwarfpool monero bitcoin xl bitcoin xl direct bitcoin bitcoin oil майнинг tether ethereum coingecko карта bitcoin робот bitcoin ethereum падает bitrix bitcoin tokens ethereum bitcoin развод
ethereum обменять tether usd bitcoin webmoney ethereum заработать testnet bitcoin bitcoin компания genesis bitcoin bitcoin картинки криптовалюта tether trading bitcoin bitcoin master
5 bitcoin конвектор bitcoin
bitcoin ethereum nya bitcoin hardware bitcoin bitcoin прогнозы майнер bitcoin monero биржи zebra bitcoin
покупка ethereum qr bitcoin ethereum форум cryptocurrency charts More on nodesbitcoin софт регистрация bitcoin bitcoin автосборщик
bitcoin hardfork bitcoin новости bitcoin wm monero ann block ethereum nonce bitcoin bitcoin mmm bitcoin poloniex bitcoin q cryptocurrency trading bitcoin приложения bitcoin cgminer monero minergate обновление ethereum miner monero cryptocurrency tech
tether 2 ethereum cryptocurrency
bitcoin основы konvert bitcoin bitcoin dump bitcoin hardfork bitcoin баланс bitcoin pools bitcoin analysis ru bitcoin bitcoin bux bitcoin падение mastering bitcoin bitcoin валюта луна bitcoin bitcoin course generator bitcoin
average bitcoin bitcoin pay android tether ico monero putin bitcoin bitcoin png bitcoin node tether usb bitcoin golden ethereum регистрация bitcoin conf master bitcoin future bitcoin monero btc
mini bitcoin
bitcoin сайты
кошельки bitcoin
надежность bitcoin оборудование bitcoin эпоха ethereum bitcoin investing loco bitcoin bitcoin xl keystore ethereum adc bitcoin store bitcoin difficulty monero bitcoin мастернода bitcoin анимация ethereum myetherwallet dao ethereum добыча ethereum bitcoin ios bitcoin legal bitcoin развод программа tether bitcoin future bitcoin обмена bitcoin alliance
форумы bitcoin криптовалюту bitcoin bitcoin eu
cryptocurrency gold bitcoin fpga ethereum coins ethereum mist ethereum org bitcoin grant exchanges bitcoin заработок ethereum Litecoin, which has tested various new features that allows its network to process more transactions, is a cryptocurrency commonly sent across the globe.nya bitcoin dorks bitcoin bitcoin goldmine china bitcoin bitcoin development bitcoin mmgp cryptocurrency reddit карты bitcoin mercado bitcoin bitcoin кошелька casper ethereum byzantium ethereum bitcoin payeer bitcoin school бот bitcoin clame bitcoin ethereum ротаторы forum cryptocurrency ethereum telegram bitcoin world переводчик bitcoin electrodynamic tether forum cryptocurrency ethereum blockchain 6000 bitcoin bitcoin конвертер master bitcoin bitcoin автоматом bitcoin приложения go ethereum
bitcoin аналитика kurs bitcoin bitcoin bux bitcoin neteller сети bitcoin bitcoin оборот
валюта tether store bitcoin bitcoin сложность 6000 bitcoin best cryptocurrency bitcoin euro bitcoin casino bitcoin keys кран ethereum bitcoin services уязвимости bitcoin bitcoin compare bitcoin сети datadir bitcoin service bitcoin ethereum addresses genesis bitcoin ethereum farm bitcoin биткоин
bitcoin reddit bitcoin rate bitcoin количество polkadot
bitcoin криптовалюта bitcoin онлайн etoro bitcoin hosting bitcoin shot bitcoin lite bitcoin 777 bitcoin скачать bitcoin alpha bitcoin bitcoin начало bitcoin q ecdsa bitcoin joker bitcoin bitcoin book ethereum история ethereum dark bitcoin стратегия bitcoin ecdsa
bitcoin mt4 ethereum клиент bitcoin mine bitcoin favicon invest bitcoin
график bitcoin бизнес bitcoin zebra bitcoin bitcoin ocean шифрование bitcoin баланс bitcoin etherium bitcoin king bitcoin bitcoin установка bitcoin chart ethereum продать bitcoin скрипт bistler bitcoin ethereum forum bitcoin minergate проекта ethereum запросы bitcoin bitcoin blocks The incentive for mining is that the first miner to successfully verify a block is rewarded with 50 litecoins. The number of litecoins awarded for such a task reduces with time. In October 2015, it was halved, and the halving will continue at regular intervals until the 84,000,000th litecoin is mined.local ethereum prune bitcoin bitcoin компьютер space bitcoin cryptocurrency tech bitcoin exchanges нода ethereum bitcoin rotator bitcoin conf bitcoin habr
A participation rate of 99% suggests the vast majority of validators on Eth 2.0 are doing their job and securing the network. Significant declines in this number would suggest active validators are shutting their nodes down and disconnecting from Eth 2.0.ethereum coin hack bitcoin bitcoin хешрейт hit bitcoin bitcoin видеокарты bitcoin formula monero free satoshi bitcoin пулы bitcoin bitcoin preev bitcoin facebook bitcoin heist bitcoin weekly bitcoin direct monero кран mastercard bitcoin bitcoin подтверждение genesis bitcoin The Bitcoin network only knows that the bitcoins in the compromised wallet file are valid and processes them accordingly. In fact, there’s already malware out therewhich is designed particularly to steal Bitcoins. The Bitcoin network has no built-in safety mechanisms in terms of unintended loss or theft.avatrade bitcoin tether ico ethereum платформа
game bitcoin bitcoin ann bitcoin hype forbot bitcoin tp tether bitcoin удвоить сеть ethereum bitcoin earnings bitcoin продажа Monero is community-oriented with more than 30 active core developers, supported by community developers along with a research lab, named Monero’s Research Lab.bitcoin markets short bitcoin Gas- A system which calculates the amount of energy needed to complete a transaction based on computational complexity, storage demands, and bandwidth needs.bitcoin приват24 ethereum pool вики bitcoin With time, people began to realize that one of the underlying innovations of bitcoin, the blockchain, could be utilized for other purposes. разработчик ethereum bitcoin save bitcoin it bitcoin wm статистика ethereum bitcoin japan bitcoin vk bitcoin скачать bitcoin терминалы cryptocurrency ethereum
bitcoin игры cryptocurrency charts kraken bitcoin 999 bitcoin фри bitcoin boom bitcoin bitcoin london bitcoin plugin
torrent bitcoin ethereum btc bitcoin автосборщик space bitcoin bitcoin plus bitcoin talk wisdom bitcoin monero кран blocks bitcoin
tether 4pda
bitcoin bloomberg capitalization cryptocurrency ethereum api заработок ethereum cfd bitcoin
cudaminer bitcoin генератор bitcoin курсы ethereum bitcoin мерчант bitcoin spend monero fr my ethereum bitcoin trust bitcoin терминалы zone bitcoin bitcoin school bitcoin технология matrix bitcoin продать monero bitcoin сложность daily bitcoin кредиты bitcoin ферма bitcoin bitcoin fpga block ethereum monero сложность bitcoin auto
анализ bitcoin testnet ethereum accept bitcoin multi bitcoin rocket bitcoin bitcoin elena ферма ethereum casino bitcoin
bitcoin king blockchain hashingethereum php Image for postethereum coingecko оплата bitcoin