Is Litecoin Giving Bitcoin a Run for its Money?
This question has been on the minds of many players in the cryptocurrency industry. Ever since its introduction, Bitcoin has always been at the top. This can be explained by the fact that it was the first digital currency presented to the public. Consequently, Bitcoin has gone ahead to set the bar for virtually all types of digital currencies that have come after it. Bitcoin also has the highest market share and value of in the alternative currency section.
Litecoin has firmly taken the number two slot in the alternative currency industry. At some point, its fate seemed to be tied to that of Bitcoin. When Bitcoin appreciated in value, the same happened to Litecoin. If Bitcoin’s price dropped, so did that of Litecoin. This trend became predictable and familiar. Litecoin showed that it could keep up with the pace, but just could not gain any further ground on Bitcoin.
What will be the total number of Litecoins?
The total number of Litecoins that will be produced after mining would be around 84 million, meaning that there would be more Litecoins than Bitcoins. Therefore, this might lead to more liquidity whereas it might also mean less value for the Litecoin. You need to understand that liquidity is not going to be necessarily true because they can be divided into smaller fractions. Nevertheless, people can still use it for other services, which means that they might be more readily used.
Is it easy to access Litecoins?
It is not as easy to access Litecoins as Bitcoins. The method is still quite similar to the option of cash. BTC-E offers majority of Litecoins, and this is a Russian exchange. An intermediary might need to be used such as Perfect Money, which can become expensive because the fee is quite high. You can also exchange Bitcoins for Litecoins, which is a method that has become extremely popular. Since it is a separate network, even if Bitcoins do not work or become redundant, Litecoins would not necessarily become so.
What are the differences between Litecoin and Bitcoin?
There are three principal differences between the two. In fact, Litecoin developers want to make it better than Bitcoin.
The first difference is that the network of Litecoin processes a block within 2.5 minutes, as compared to the 10 minutes processing time of Bitcoin’s block. Therefore, this will lead to faster transaction outcomes. However, this means that there would be increase in the number of blocks that are orphaned along with an increased size of the blockchain, which can be potential drawbacks. However, there is great resistance to the spending attack.
The second difference is that it is uses a memory-hard function algorithm, which is in the form of a script.
Furthermore, another difference includes the fact that it is able to produce 84 million litecoins, which is four times more than the currency units which are issued by the Bitcoin network.
However, because Litecoin uses scrypt algorithm, this means that mining Litecoins are more difficult and ultimately more expensive, as well.
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