Litecoin and Bitcoin are believed to be the two of the most common cryptocurrencies used today. A cryptocurrency is defined as a digital or virtual currency used to transact online. These currencies use a cryptographic technology that prevents users from double-spending or forging. Most virtual currencies use a decentralized system. This means that no central regulatory body controls the money. Additionally, a digital ledger, called a blockchain, is used to record transactions and identify ownership.
Bitcoin or BTC was the first digital coin to be founded. After BTC, many other cryptocurrencies have been created. Litecoin or LTC was the latest to follow BTC’s footsteps and made its debut in the market. Soon after other virtual currencies started popping out leading to a diverse range of options present today.
What Features Make Litecoin Superior To Bitcoin?
Litecoin was developed by its founder to enhance the flexibility and functionality of the first-ever crypto, Bitcoin. Even so, most people are using BTC compared to LTC. It may be because Bitcoin has a better foundation, and most people are already using it in businesses for transactions. However, most individuals are buying Litecoin today, and the currency is catching up fast.
LTC and BTC share different common characteristics. For instance, they both use decentralized networks. Both are obtained similarly through mining or exchanging from one user to another. Additionally, proof of ownership and transaction history for both can be found in a blockchain. Users mine these two coins every day. Therefore, the two use a common system called halving, which reduces the number of coins in circulation.
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Litecoin was created as a greater version of Bitcoin. Therefore, it has superior characteristics that make it a preferred investment over BTC. Some of these features are:
1) Allows Higher Number Of Supply Cap
Bitcoin and Litecoin both have a supply limit. When this limit is attained, no more coins will be produced. However, the supply cap for LTC is higher compared to BTC. For Bitcoin, the supply limit is 21 million, while for Litecoin, it’s 84 million. Therefore, until the maximum amount is attained, LTC will continue to satisfy a more significant number of customers compared to BTC.
These enhanced LTC features are not only superior to BTC but to also some other types of cryptocurrencies. It has been mentioned by experts several times that Litecoin’s future could be brighter. Therefore, a good number of people today are considering LTC as opposed to other digital currencies.
2) Faster Mining Rate
Scrypt algorithms identify as more reachable to users compared to BTC’s more complex system. LTC utilizes scrypt which makes it a cheaper and easier digital currency to mine. This factor then becomes one of the reasons why LTC is becoming popular as days go by.
LTC’s mining speed is also higher. One BTC is mined in 10 minutes, while an LTC can be generated within 2.5 minutes. It has been mentioned that this mining speed also affects the confirmation speed of a transaction. For BTC, it takes approximately 10 minutes to complete a transaction. For LTC, however, it takes 2.5 minutes. This is almost four times faster compared to Bitcoin. This factor also increases the volume of transactions that LTC can handle.
Additionally, it’s believed that LTC can be more beneficial for smaller tasks. It’s because the transaction charges may be less compared to what could be charged for BTC.
Crypto prices change due to varying factors such as competition, supply, demand, or government policies. However, LTC maintains a lower price compared to BTC. This characteristic ensures that digital currency users can sell or buy more LTC at a substantially lower amount than BTC.
3) Simplified Mining Algorithm
BTC and LTC share a similar proof-of-work idea. However, the cryptographic algorithm system used between the two differs. Bitcoin uses an older and more complex system, while Litecoin uses an improved system called scrypt. These two algorithms affect the mining speed of the coins.
BTC’s algorithm system makes it hard for everyday owners and users to join a data mining network. Usually, if a user needs to do modifications on their system’s hardware in order to take in tasks to get paid using cryptocurrency. For those who are just starting out, Bitcoin’s system can be overwhelming and daunting to understand.
Meanwhile, LTC’s scrypt utilizes solutions that don’t require users to avail of modified hardware systems in order to join in the data mining process. Scrypt ensures that users can mine LTC using a device’s graphics processing units or GPUs and central processing units or CPUs. These components don’t require powerful computers. Therefore, less energy is consumed while mining LTC.
Bitcoin was the first crypto ever developed. Hence, it’s firmly established itself compared to other virtual currencies in the market. However, a major competitor catching up today is Litecoin. This electronic coin was created as an enhanced version of BTC. The goal was to improve BTC’s processes and, as a result, increased efficiency. LTC, therefore, possesses more desirable features than BTC.
One factor that makes LTC superior is that it takes less time to mine one coin than one BTC. Also, LTC’s scrypt algorithm makes mining easier and cheaper than BTC’s more complex system. Lastly, Litecoin has a higher supply cap, ensuring that a higher demand can be satisfied, unlike Bitcoin.