There was a time when people considered physical assets as the most credible investment.
This perception dramatically changed over the last decade when cryptocurrency (like; Bitcoin and Litecoin) made a fortune for some people in the least imagined way.
Today, most people wish to go back in time and invest in cryptocurrency or, more precisely, in Bitcoin. Do you feel the same? Stop living in the past because you can still cash this opportunity by making the right decisions.
In this thread, we are going to compare two of the most popular cryptocurrencies of contemporary times. The first one is Bitcoin, which has become the face of cryptocurrencies for so many reasons. The second one is none other than Litecoin, which targeted the apparent shortcomings of Bitcoin to make its place in the crypto world.
In this article, we will highlight the following points:
Bitcoin Vs. Litecoin: An Overview
Bitcoin became the synonym of cryptocurrency probably because it was the first one to be ever launched. On the flip side, Litecoin is also one of the first few cryptocurrencies to be ever introduced. The launching date of Bitcoin is considered to be Jan. 3, 2009, whereas Litecoin was launched in October 2011.
As stated by himself, Litecoin’s founder Charles Lee aimed to offer silver to consumers considering Bitcoin as gold. Bitcoin is undoubtedly the gold of cryptocurrency, with its market cap sitting at $1 Trillion. The $13.7 Billion market cap of Litecoin indicates it has also successfully managed to be silver of cryptocurrency.
To add to your information, Litecoin is the 6th largest cryptocurrency globally, and it’s still stealing the show with impressive progress every next day.
Similarities Between Bitcoin & Litecoin
For choosing what’s best for you, you must cover all the aspects of both these cryptocurrencies. Starting with similarities will help you understand the fundamentals, whereas differences will aid you in making the right decision.
Above all, both of these coins are crypto or decentralized currencies. You can use these currencies for both investing and trading purposes.
In the case of trading, if you are a business owner, you can incorporate these coins as a payment method. If you are just a consumer, you can buy stuff online using these cryptocurrencies. The world is rapidly adapting to consider cryptocurrencies as a legitimate payment method.
Despite the fact mentioned above, some retail outlets still don’t accept crypto as a payment method. The best way to overcome this inconvenience is to buy gift cards from relative retailers using cryptocurrencies.
Suppose you want to shop on Flipkart, a popular online retailer, but they don’t accept cryptocurrency. What will you do here? You can simply buy a Flipkart gift card using your Bitcoin or Litecoin and enjoy your shopping.
Correlations Between Bitcoin & Litecoin
Let’s have a look at the correlations between Bitcoin and Litecoin:
Proof Of Work
The process of mining holds great significance in the world of crypto. This process includes the generation, authentication, and lastly, the addition of a coin to the blockchain or public ledger.
This process of mining varies from coin to coin. In the case of Bitcoin and Litecoin, the process of mining is nearly identical. Due to the equivalent nature of mining these currencies, they are termed as Proof Of Work ecosystems.
It is the most fundamental similarity between Bitcoin and Litecoin.
Storage & Transactions
The way you can buy, sell, mine, or store both of these coins is also quite similar. The most popular and credible way of purchasing both Bitcoin and Litecoin is via an exchange. In addition, you need a mining rig to mine both of the under consideration coins.
Similarly, a “Cold Storage Wallet” is one of the requisites if you want to store any of these coins safely.
Also, Read | A Step-By-Step Guide For Beginners To Buy Bitcoin!
Differences Between Bitcoin & Litecoin
Although these coins look pretty similar on the surface, they share some considerable differences as well. Following are the points where both Bitcoin and Litecoin deviate from each other:
The most apparent difference between these two coins is the gap between their market caps. In simple words, the market cap can be defined as the total dollar amount of the coins in circulation.
The value of all the outstanding Bitcoins is estimated to be $1 Trillion. In contrast, Litecoin’s total market cap is worth $13.7 Billion, which is 70 times lower than Bitcoin’s market cap.
Number Of Total Coins
The second most significant difference for a non-technical person is the total number of coins of both cryptocurrencies. 21 Million is the highest number of Bitcoins that can exist in a Blockchain. Contrarily, the total number of Litecoins can reach up to 84 Million.
This difference automatically lowers the price of a single unit of Litecoin. The news might seem favorable affordability-wise, but you should not forget that this fact also makes Bitcoin more exclusive, making it dominant and talk of the town.
After thorough research on Bitcoin and Litecoin, we can safely say that both coins have pros and cons in equal weightage. For some, they can buy a single unit of Litecoin at an affordable price could be pretty attractive. At the same time, others may find the exclusivity of Bitcoin the biggest perk.
In the end, it’s your call. All we can say is don’t invest in something you don’t understand. Otherwise, you will find yourself in dire straits.