Litecoin vs. Bitcoin: Which Is Better?
If you’re new to the crypto space, welcome. This article is for you.
Cryptocurrency is digital money. You can’t see it, can’t touch it. You can’t pull it from an ATM (well technically you can’t), but it exists and is used as a means of financial exchange in the virtual world.
There are hundreds of cryptocurrencies in existence, however, there are two contenders in the crypto space that appear to be causing a bit of commotion.
That is, Litecoin and Bitcoin.
The Litecoin vs. Bitcoin debate is a heated one for some. In this article, we’ll dive into what the differences between the two are, and help you decide which one is better for you.
A Brief History of Cryptocurrency
The theoretical framework for cryptocurrency has been around for decades. “Cryptocurrency” gets its name from “cryptography”, the study of secure communications methods. This means ensuring information is locked between the messenger and the intended recipient.
Around the 1980s, an American cryptographer named David Chaum invented an algorithm that, to this day, is critical to web-based encryption. It paved the way for future electronic currency transfers, known as “blinded money”.
Chaum went on to develop a company called DigiCash, which folded in the 90s. The concept of electronic financial transactions had not caught on yet and seemed too risky. A few others gave a shot at cryptocurrency, but also failed.
More conventional products began to spring up post-DigiCash, like Paypal. The company, e-Gold, also made its way into the market, but we all know how that turned out.
It wasn’t until 2009 that cryptocurrency made its way back on scene, starting with Bitcoin.
Litecoin vs. Bitcoin
Who created Bitcoin remains to be a mystery, other than a name, Satoshi Nakamoto. However, the advantages of using Bitcoin are evident.
Bitcoin is both digital money and a payment network. This means the BTC system operates solely without dependence on any intercessory government agencies, monetary economists, or other such regulators.
Bitcoin is the first of its kind, allowing peers to exchange value with one another freely and almost anonymously.
There are several Bitcoin trading platforms available for users to buy, sell, and exchange. Some pros for using Bitcoin are:
- Open financial system that allows payments all over the world 24/7, without the need for a traditional bank.
- Bitcoin cannot be confiscated from you. BTC transactions are uncensorable.
- Anyone can open a Bitcoin account without any credit history verification.
- Bitcoin value appreciates by design, and is not affected by inflation.
When it comes down to deciding between Litecoin vs. Bitcoin, it’s a tough call, being that they are homogeneous in nature. There are a few differences, though.
Litecoin came around in 2011. Just like Bitcoin, it is an open-source global payment network. No central governance oversees it.
An MIT graduate developed LTC, Charlie Lee. He designed Litecoin to be the “silver” to Bitcoin’s “gold”. His goal was to improve upon Bitcoin’s shortcomings.
As with Bitcoin, there are several platforms you can use to buy, sell, or trade Litecoin. Once you’ve entered the crypto space, exchanges can be made simply, even internationally. For example, you could sell Litecoin on VirgoCX.ca to a buyer from the U.S. More developed countries allow greater flexibility for international partnership.
Litecoin comes with the same benefits as Bitcoin, with a few extras:
- Litecoin can handle more transactions in a shorter amount of time compared to other cryptocurrency systems, making it faster and scalable
- Transaction fees are nominal
- Constant improvement upon network capabilities, like the Lightning Network protocol
- Mining efficiency
What’s the Difference?
Although Bitcoin and Litecoin look the same on the surface, there are some key differences. The great debate between the two seems to lie mostly with Litecoin’s transaction speed versus Bitcoin’s strength.
Many believe Bitcoin will always remain the champion throughout market volatility, however, Litecoin has proven to put up a decent fight. The Litecoin vs. Bitcoin battle surely will rage on.
So, what do you think?
Want to learn more about cryptocurrency or start investing today? Be sure to check out our Learn section.