The popularity of the crypto currency has shot up in recent years. The reason is none other than the rise of Bitcoin as a decentralized currency that internet users are increasingly relying on. This phenomenon then inspired some parties to “imitate” the concept of Bitcoin, with a slight difference that is expected to complement the lack of the currency. Well, one of the most widely known crypto currencies is kurs litecoin.
The use of Litecoin has even begun to be familiar in several online vendors who previously only received payments via Bitcoin. now Litecoin has provided litecoin rates. Even though its market capitalization is still smaller, it cannot be denied that Litecoin is increasingly attracting the interest of digital currency fans. So, which is better between Bitcoin and Litecoin? To reveal the answer, we will dissect the similarities and differences in the basis of the two virtual currencies.
bitcoin vs. litecoin
Equations of Bitcoin and Litecoin
At first glance, Bitcoin and Litecoin have almost no difference. As a decentralized crypto currency, both Bitcoin and Litecoin are not regulated by the government and central banks of any country.
In addition, the price fluctuations of the two currencies are not affected by economic or political turmoil that could threaten the stability of a country, as well as in the upheaval of prices in fiat currencies (US Dollar, Japanese Yen, Indonesian Rupiah, etc.). In contrast, the value of Bitcoin and Litecoin depends more on network cryptographic integrity and is purely determined by the level of market demand and supply.
Difference between Bitcoin and Litecoin
Compared to similarities, the factors that distinguish Bitcoin and Litecoin are actually far more. This article will discuss the four most basic differences between the two crypto currencies.
1. Market Capitalization
The growth of the Bitcoin market capitalization has made an impressive development, especially if you consider its value of only $ 42,000 in the early days of its launch. In 2015, about 6 years after the time of its release, Bitcoin’s capitalization had reached 4 billion Dollars. Meanwhile, Litecoin only recorded an achievement of around 75 million Dollars in the same period.
2. Amount of Coins
As is known in various discussions about Bitcoin, the amount of money in the circulation will not exceed 21 million. So even though the current Bitcoin can still be mined, this activity will not produce anything when the Bitcoin quota circulating on the market has been fulfilled. At present, the creation of new Bitcoin has been subject to the halving system which slows down the rate of making Bitcoin in any given period.
Meanwhile, even though new Litecoin can also be obtained in the same way (mining), the maximum amount that limits the making of new Litecoin is more than Bitcoin. In fact, Litecoin will continue to be produced until the amount circulating in the circulation reaches 82 million.
3. Transaction Processing Speed
Although technically the Bitcoin and Litecoin transactions take place instantaneously, there is a time lag that is needed to confirm transactions to other network users. According to the Blockchain data, the average time that Bitcoin takes to complete transaction confirmation is around 10 minutes. On the other hand, Litecoin transactions do not require that long. In fact, the confirmation time for processing transactions with Litecoin only takes about 2.5 minutes.
Such contrast differences are clearly very influential for the attractiveness of Bitcoin and Litecoin. Online merchants who have business interests will obviously be more interested in the efficiency of Litecoin transaction time, remembering for them, “time is money”.
4. Mining technology
Bitcoin uses a complex SHA-256 algorithm and requires super-powered technology to complete the process. On the other hand, Litecoin relies on a cryptographic algorithm called Scrypt. Although relatively new, Scrypt is simpler than SHA-256 and can be processed with a simpler device than Bitcoin mining technology.