Last week was a great week for both Litecoin and Bitcoin. Bitcoin was able to break the $6500 resistance level and Litecoin broke the $60 resistance level. In addition to this, Litecoin was added to SFOX a platform which exposes it to institutional investors. So, clearly, Litecoin is making strides which will assure its position in the crypto space now and in the future. But is it good enough to beat bitcoin? Well, it’s good to first note that it is based on bitcoin with a few key differences. So, to really understand it we need to look at the key differences between Litecoin and Bitcoin.
Key Difference Between Litecoin And Bitcoin
At the very basic level, the two share a lot, mainly because Litecoin was developed as a copy to bitcoin. Some similarities include mining, supply limit, and block reward halving every four years. The two coins also saw the fastest price surge of the year 2017. Where bitcoin came from under $1000 to reach over $19000, Litecoin began the year under $100, to reach over $300. However, several differences set them apart and they are the only reasons that make one a better investment for the future than the other.
The first key difference in the functionality of the two coins is transactions speed. Here, Litecoin comes way ahead, using only a share of the time required to process a transaction on bitcoin. Where bitcoin takes approximately 10 minutes, Litecoin only takes 2.5 minutes. This makes it a preferred coin for users making transactions.
Although the two share the mining characteristic, they both take very different approaches. Bitcoin uses SHA-256 which makes it hard to find new blocks. To be successful using the SHA-256 algorithm, one requires professional hardware and ASICs. It is also considered to be very complex to use and very few people have been successful in mining bitcoin. Mining has largely been left to big institutions which can afford the hardware, the running cost and understand the working of the process. Litecoin, on the other hand, simplifies this by using the Scrypt algorithm, this makes it simple to mine with ordinary PCs connected to the internet. It also reduces the amount of power required to mine.
It needs no mentioning that the creator of bitcoin is still unknown having only revealed an alias name “Satoshi Nakamoto.” Litecoin’s creator is Charlie Lee, a former Google engineer and a Litecoin evangelist although he sold off his Litecoin coins.
Charlie Lee, the founder of Litecoin, has previously described Litecoin as the Silver to Bitcoin’s Gold. But, as far as the signs go, this could be vice versa. However, bitcoin’s massive adoption cannot go unnoticed and it is the primary the reason why it is stronger in numbers on the market.
So, Which Of The Two Is Better To Invest Into In The Long-term?
Although technologically Litecoin was based on bitcoin, the coin has been able to improve on bitcoin’s shortcomings making itself better. This sets it up for adoption in the future with investors starting to understand what it offers against bitcoin. The coin is also continuing to forge new partnerships every day, these partnerships are vital to the success of the coin in the future. They signal the confidence and legitimacy of the project.
Another crucial reason why Litecoin is the better investment for the long term is that the buying price is currently low and the potential return is high. If you invest in a single Litecoin, you’ll only pay $60 and you can earn as high as over $300 and the risk you’ve taken remains to be $60. However, if you invest in one bitcoin, you have invested $6,500 and stand to gain $19,000, but you stand to lose $6,500. It is best to invest in the investment that stands to lose you the least but still stands to earn you the most.