Is Litecoin better than Bitcoin?

By jordanjnr | Crypto Digest | 7 Dec 2019

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I love crypto fights.

When one tries to outdo the other.

And today's fight is : LTC Vs BTC.

So similar. Yet so different.

With one born out of the other,but trying to be the prodigal son,which one of these two cryptocurrencies trump's the other?

Let's find out!

But first,a few key specs of each coin

 

LITECOIN SPECS

  • Created by Charlie Lee,a former Google employee on November the 7th,2011.
  • It is a hard fork of Bitcoin (I'd be doing a post on hard forks and soft forks soon,so follow if you're interested so you'd be the first to know)
  • Market cap of $9.7 billion
  • Has a block reward of 25LTC for each successfully mined block
  • Transaction time of 2.5 minutes
  • Limited to only 84 million that would ever be created 

BITCOIN SPECS

  • Created by an anonymous person or group called Satoshi Nakamoto on the 3rd of January,2009.
  • Transaction time of 10 minutes.
  • Block reward of 12.5BTC(to be halved to 6.25 in June 2020)
  • Market cap of $153.9 billion
  • Limited to only 21 million that would ever be created.

Now,in order to find out who's better,we compare their technologies and other factors.

 

1. Ease of Mining

Bitcoin is mined using SHA-256 hashing process. Bitcoin mining takes up a lot of computing power,and a ton of electricity(ranging to $3000 as I explained in my post on mining here). Bitcoin rewards 12.5 BTC per successful block mined,but the mere cost of mining the stuff can eat up your profits,especially if you don't keep record.

Litecoin on the other hand is mind using the Scrypt process. This mining process is faster than the SHA-256 process used by Bitcoin miners,but is arguably less secure. 25 LTC are given out per successful mined block,and this number is usually halved,although the time frame for this isn't certain yet.

In this case,Bitcoin takes the win. Even though Scrypt is a faster mining process,SHA-256 is a safer method,expensive as it may be.

2. Transaction times

Spoiler alert: Litecoin wins this round hands down.

Bitcoin transactions take a minimum of 10 minutes,and have peaked an hour in my personal experience. The transactions have to be verified by each computer in the blockchain,leading to slower transaction  times,but better security.

But this is no match for Litecoin.

In my personal use,sending Litecoin from one wallet to another has never taken me more than 5 minutes. I mean ever.

Litecoin has an average transaction time of 2.5 minutes,and can peak at 5 minutes in my own personal use.

Litecoin takes the win on this one.

3. Store of value

Bitcoin has a stored value of 21 million,because there will only ever be 21 million Bitcoin created. This leads to something called the deflationary characteristic of Bitcoin. It increases in value as the amount in circulation decreases(although it doesn't work this strictly).

Litecoin on the other hand has 4 times more the maximum amount of Bitcoin, thereby storing much less value than Bitcoin(this shows in their price difference being over five thousand dollars). Even if it becomes deflationary like bitcoin,Litecoin would be far ahead in the race to maximum value.

Bitcoin takes this round.

4. Transaction costs

Bitcoin and Litecoin transaction costs are dictated majorly by the amount of load on the Blockchain.

Bitcoin generally costs more to transact than Litecoin,because if the sheer number of transactions taking place on its blockchain.

Litecoin was actually designed to be a more affordable way to transact coins(in comparison to Bitcoin),and it achieves its aim very well. It can cost up to 50% lesser to transact Litecoin in my constant practice.

Litecoin wins this round.

5. Harm to the environment

Let's face it,mining cryptocurrencies yields harm to the environment,because of the extra power that is used.

Bitcoin uses ASIC machines to mine its own bitcoin blocks. These miners are expensive and drink electricity like a thirsty athlete guzzles water. This leads to more pollution of the environment as more electricity is required to service the machines.

Litecoin on the other hand can be mined with something as simple as your Core i7 enabled laptop's GPU (you really shouldn't do this if you want to see profits ever). The fact that it can be mined by almost anything that has a GPU (Save for your phone) makes litecoin's damage to the environment a lot less than what Bitcoin does.

Litecoin wins this one.

6. Politics

Bitcoin will always be seen as the superior crypto by the media. That is why head to head battles like this matter in proving them wrong.

Bitcoin usually appears in the news everyday,for both good and bad reasons. 

Litecoin on the other hand has a bit of negative publicity as it's own creator sold all his holdings of the coin when it was at it's all time high(that's very confidence inspiring).

Litecoin politics are definitely less than Bitcoin politics,and the world that doesn't know any better would take Bitcoin over Litecoin as the future of payments,despite Litecoin's superiorities in transaction fees and speeds.

So Litecoin wins this round.

Overall,Litecoin took 4 wins while Bitcoin had only 2. Litecoin is a much better proposition than Bitcoin in my humble opinion.

It's faster,cheaper and just generally better. Yes,a lot of work needs to be done on both currencies,but with fewer transactions on Litecoin's platform,we would see changes much faster than on the Bitcoin side.

Thanks for stopping by.

This post took quite some time and effort to put together. I'd love a tip and follow to encourage my work. Cheers!


jordanjnr
jordanjnr

Hello! I am a Blockchain enthusiast,bitcoin investor,CEO of BigTycoon group and I love crypto! Hit me up @TycoontechBlog on twitter!


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