Bitcoins Vs Litecoins - Complete Overview and Analysis

Crypto in many ways has taken the challenge of altering the current monetary systems in the world. With a lot of resistance from nations all around the world and the potential that has been exhibited by digital asset has made them a hot topic in the financial world.    

Bitcoins Vs Litecoins - Complete Overview and Analysis
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Bitcoin is the first cryptocurrency and the biggest thus far in terms of market capitalization. In 2008-09 when bitcoin was starting as a newbie in the system some alter coins also entered the market as an alternative to bitcoin which came to be known as altcoins. Litecoin is one of those altcoins created in 2011.

What Is Bitcoin?

The first cryptocurrency which was introduced to the world is Bitcoin by Satoshi Nakamoto. The identity is still a mystery to the world, because a white paper about Bitcoin was published with the name of Satoshi in 2008 where he described the peer to peer technology in the form of blockchain. The whole motive was to make a system of safety and security in financial transactions. This safety is given in blockchain technology, making a decentralized system.

Following the Bitcoins path, many currencies emerge over time which has led to now over 12000 cryptocurrencies in the global market. The bitcoin holders are now emerging as the new millionaires because of the radical increase in cryptocurrencies prices largely in the past couple of years. Be sure to check out to avail more information about this concept.

What Is Litecoin?

After the launch of bitcoin, the new cryptocurrencies began to hit the market with the name altcoin. An altcoin refers to the alternative to bitcoins which was launched in the year 2011 by Charlie Lee, a former Google engineer. 

Litecoin maintained the functions of bitcoin which were working for bitcoin and worked upon some areas where there was the possibility of improvement. Litecoin is now more than just an altcoin with more than 84 million coins in circulation which is higher than bitcoin. 

What Is The Difference Between Bitcoin & Litecoin?

● Total Supply

It is the feature of any cryptocurrency to have a limited supply. The limited supply of crypto makes them different from fiat currencies which have an unlimited supply. The reason behind the limited supply is to control the market inflation. In the case of bitcoin, the total supply in circulation is 21 million which is one-fourth of the Litecoins supply of 84 million. So, the demand of BTC will be high as always because of its limited supply compared to Litecoins.  

● Algorithm

The algorithms used in both currencies are different. The security algorithm of bitcoins SHA-256 hash algorithm and Litecoin uses the Scrypt hash algorithm. The bitcoins  SHA-256 hash algorithm is complex and traditional whereas Litecoin has a Scrypt hash algorithm that is simple. So mining Litecoins can easier and miners can mine such coins faster than BTC.    

● Market Capitalization

Although the capitalization of all the currencies is heavily influenced over the years bitcoin comes as the biggest player in the crypto market. The market's volatility led to a $1000 billion market capitalization of bitcoin in April 2021 which thus far is the highest. The value dropped to $600 billion in June of the same year, as of now bitcoin has $400 billion. Litecoin also reached its highest in 2020 with a 10 billion market cap. 

● Validation Time

The validation times play a big role in making the transaction fast. The lit mode of bitcoin that is Litecoin is faster than the bitcoin block validation timing. The time spent by the bitcoin block time is 10 minutes and the Litecoin has only 2 minutes of block time. So, transactions with Litecoins can be completed in a few seconds, which is faster than BTC. 

Final Overview

In the crypto world, there are many cryptocurrencies two of such are bitcoin, the first crypto in the world, and Litcoin, a fork of bitcoin. In the article, we have discussed what is Bitcoin and Litecoin and what is the difference between them. Therefore, if you wish to make investment in Bitcoin or Litecoin then be sure to scan the market carefully and analyze the trends to make long term profits.