What's the Difference Between BITCOIN and LITECOIN? (2022)

 Which is preferable depends on your objectives, what you want to do with your money, and how you feel about cryptocurrencies. Litecoins are created more quickly than Bitcoin, yet Bitcoin is more valuable. Bitcoin may be preferable if you want more coins for a lower price, while Litecoin may be preferable if you want more coins for a lower price.

The maximum number of Litecoin coins is 84 million. On June 18, 2022, there were 70.52 million people, therefore there were around 13.48 million left.

Over the last several years, cryptocurrencies have grown in prominence, as has people's interest in them. Bitcoin, which was launched in 2009, is one of the most widely used digital currencies. Since then, a slew of new currencies have arisen, including Litecoin, which has managed to stay in the race for quite some time. Don't worry if you don't understand how Litecoin and Bitcoin differ from one another; we'll explain everything in this Litecoin vs Bitcoin comparison.

Contents Table of Contents

• Overview of Bitcoin vs. Litecoin
• Differences between Bitcoin and Litecoin and How Bitcoin and Litecoin Are Similar
• FAQs on Bitcoin vs. Litecoin
• Conclusion

Overview of Bitcoin vs. Litecoin

Over the last few years, interest in cryptocurrencies has grown, owing to more people discovering how convenient they can be, as well as their investment potential. Bitcoin is one of the most popular cryptocurrencies, which is understandable given that it was the first of its kind to emerge.

At the moment, Bitcoin isn't the only cryptocurrency available; many others have entered the market and established themselves in their own unique way. Even so, not every cryptocurrency can stand out, and it's particularly difficult for newcomers to gain traction in such a crowded market. Litecoin, on the other hand, is one of the currencies that is still competing, and it is also one of the most popular cryptocurrencies.

Bitcoin had a market cap of $1 trillion in March 2021, while Litecoin had a market cap of $13.7 billion. Algorithms are also different between the two. Scrypt is a newer algorithm used by Litecoin, while SHA-256 is used by Bitcoin. In addition, Litecoin has a faster transaction speed and produces more coins. It's important to remember that this is just a way to pique investors' interest; it has no bearing on the cryptocurrency's usability or value.

CTA How Do Bitcoin and Litecoin Compare?

Despite the fact that they are two different currencies, Bitcoin and Litecoin have a lot in common. They are, for example, decentralized cryptocurrencies. The value, legitimacy, and circulation control of fiat currencies, such as the US dollar, are all based on the central bank's backing. This is not the case with cryptocurrencies, however. They are not subject to centralized authorities and instead rely on the cryptographic integrity of the network.

At the time of its creation, Litecoin was thought to be related to Bitcoin. Litecoin was first introduced in 2011, and its creator, Charlie Lee, a former Google engineer, described it as a "lite version of Bitcoin" at the time. This message was posted on a well-known Bitcoin forum at the time. After all, the Litecoin developers have stated numerous times that they intended to create a silver version of Bitcoin's gold.

As a result, Litecoin shares many characteristics with Bitcoin, including:

Storage and Transactions

Litecoin and Bitcoin transactions are frequently mistaken for one another by investors. It's simple to obtain them by mining with a mining ring or purchasing them on the exchange. They must be kept in a "wallet" to be kept safe between transactions. They also have extremely volatile prices over time.

Work Samples

The fact that both cryptocurrencies are proof of work ecosystems is another similarity between them. As previously stated, the process for mining the two currencies is similar.

Bitcoin vs. Litecoin: What's the Difference?

Bitcoin and Litecoin certainly share some similarities, but at the end of the day, they are different cryptocurrencies and they inevitably have some unique features. Here is what makes them different.

Transaction Speed

When making transactions with Bitcoin and Litecoin, they happen instantly most of the time. Still, they need some time until the other network participants confirm the transactions.

Bitcoin has an average transaction confirmation time of less than 9 minutes, although it may last a bit longer in moments of high traffic. At the same time, Litecoin was created with the intention of making transactions faster, so that people would be interested in using it. Transactions on Litecoin take less than 2.5 minutes, which is one of the reasons it has grown in popularity over time.

Capitalization of the market

The market capitalizations of the two cryptocurrencies are different. Litecoin was worth $13.7 billion in March 2021, while Bitcoin was worth around $1 trillion.

The network of Bitcoin is simply larger than that of other currencies. Bitcoin had a market capitalization of $42,000 in July 2010, which was a long time ago. As a result, its growth is truly remarkable.

Ethereum, with a market capitalization of around $212 billion, is the cryptocurrency that comes closest to Bitcoin in terms of market capitalization. As a result, it's no surprise that Bitcoin outnumbers Litecoin.

Algorithms

The algorithms for Litecoin and Bitcoin are also different. Scrypt is used by Litecoin, while SHA-256 is used by Bitcoin.

The two algorithms have different outcomes when it comes to mining new coins. To confirm transactions on both Litecoin and Bitcoin, a lot of computational power is required. In most cases, SHA-256 is a more complicated algorithm than Scrypt.

The miners also attempted to mine bitcoins using some of the most advanced ways available. Miners choose ASICs, which are hardware systems designed to mine Bitcoins, to accomplish this.

Meanwhile, Scrypt was designed in such a way that it is less vulnerable to ASIC-based mining custom hardware solutions, which is why more people are gravitating toward Litecoin. As a result, Litecoin appears to be more accessible to folks interested in becoming miners.

Distribution

The amounts of coins produced by Litecoin and Bitcoin are different. Bitcoin will never have more than 21 million coins. On the other hand, Litecoin has a maximum supply of 84 million coins.

While this appears to be a benefit at first, as both currencies are split into almost microscopic amounts, the implications in the real world may be minimal.

FAQs about Bitcoin vs. Litecoin

Here are some frequently asked questions concerning the differences between Bitcoin and Litecoin:

What Is the Purpose of Litecoin?

People are the primary buyers and sellers of Litecoin. Litecoin is a sort of digital money, which means that individuals and institutions can use it to transfer funds between accounts or purchase various goods and services.

Is it Possible to Convert Litecoin to Bitcoin?

Not only can you convert Litecoin to Bitcoin, but you can also convert Bitcoin to Litecoin. To do this, you simply need to have a trading software or an exchange platform.

Is it possible to send Litecoin to a Bitcoin wallet?

It is not possible to send Litecoin to a Bitcoin address since you would lose the money if you try. You might be able to restore it, but it will be quite difficult.

Is Litecoin on the verge of displacing Bitcoin?

It's difficult to predict whether Litecoin will overtake Bitcoin. After all, Bitcoin is the first cryptocurrency, and most people link it with the entire cryptocurrency sector. It's just speculation as to whether Bitcoin will be surpassed by another cryptocurrency.

Conclusion

Both Litecoin and Bitcoin have advantages, but they also have certain commonalities. They can be excellent financial opportunities, and you can convert from one to the other if you want to. Before you choose amongst them, make sure you investigate what they have to offer and pick the one that best meets your demands.