Jun 21, · As of May , the total value of all bitcoin in circulation is just under $ billion, making its market cap more than 45 times larger than Litecoin, which has a . Aug 19, · Development: Bitcoin is supported by developers at various organizations including Blockstream, MIT, and Square Crypto. Many non-profit developers also contribute to Bitcoin; they are listed on 24crypto.de Disadvantages: Fees: The average Bitcoin transaction costs about $ or more, which is relatively high among cryptocurrencies. Sep 11, · Pros And Cons of Litecoin. Investing in Litecoin has been incredibly profitable for early crypto investors, and several signs point to a repeat in the asset’s power breakout. If another 10, rally takes place, Litecoin investment now would be life-changing. Pros. Transactions confirm much faster than Bitcoin.
What is more profitable litecoin or bitcoinTwo Sides of the Coin: Litecoin Mining vs. Bitcoin Mining
Of course, there are plenty of whales that own both, just due to how crypto came to be. In addition, only so many coins are currently in circulation, making them even more rare than it would appear. Millions of coins are also presumed lost. Both also rely on the same block reward halving mechanism and proof of work consensus method to secure the network underlying network each token underpins.
The biggest challenge Litecoin faces is the fact that Bitcoin and Litecoin currently target the same investors and traders. Ethereum, for example, has an entirely different use case, and developers build smart contracts and decentralized apps on top of it. In contrast, both Bitcoin and Litecoin are used as payment currencies or a store of value.
Bitcoin and Litecoin are called digital silver and gold. Like the cryptocurrencies referenced, both precious metals have limited supplies, are used as a store of value, and have been used as a currency over the ages.
Few other assets have these attributes, making them unique as an investment or trading asset. Things could soon change for Litecoin, however, as Bitcoin gets much more expensive by the day, and Litecoin remains relatively affordable by comparison.
Litecoin was also just added to PayPal alongside Bitcoin, Ethereum, and Bitcoin Cash, exposing the altcoin to million mainstream users of the payment service.
If and when Litecoin becomes regularly adopted as a payment currency, then it will have more utility compared to Bitcoin due to the faster speed, lower transaction fees, and a higher rate of transactions per second. The pandemic has sped up the trend towards digital currencies, so it could also happen sooner than expected, especially now with PayPay involved.
For the differences outlined above, one will make a better investment than the other. However, technical analysis, expert price predictions, and historical price action can also be telling about what to expect in terms of performance in the near-term and long-term for each. This powerful volatility makes Litecoin an excellent asset for trading, even more so than an investment.
Investors who bought at the high would be out money by holding the entire drawdown. The same goes for Bitcoin. Litecoin has since lagged behind Bitcoin, however, this also makes Litecoin more likely to outperform Bitcoin at some point once again. Phases where altcoins like Litecoin outperform Bitcoin, are called and altcoin season and Litecoin has been left out of the last few.
After so much stagnancy in Litecoin, and due to the sudden exposure of the tiny LTC supply to million PayPal users who are more likely to buy the cheap coin and not Bitcoin, it very well could make for a strong investment in the future once again. It would take substantial capital to take Litecoin to the price per Bitcoin, and Bitcoin would likely rise with it and absorb any chance of becoming bigger.
When it comes to Bitcoin vs Litecoin, it is difficult to call a clear winner, and even despite several similarities, the two assets still complement one another well. For this very reason, it is why the two cryptocurrencies are referred to as digital silver and gold. The two precious metals have always had similar reasons to hold one or the other and were used for all the same reasons.
As an investment, they have both done well over the centuries and only increased in value. They also make a fantastic trading instrument due to market volatility. The same goes for Bitcoin and Litecoin, except volatility is supercharged. And just like gold and silver, that have a unique relationship, so do Bitcoin and Litecoin. According to the gold versus silver ratio, silver often performs better than gold after gold rallies have run out of steam. Investor money might come out of gold and into silver.
Oddly enough, the same behavior happens in crypto,. Bitcoin makes an excellent investment and trading asset due to how powerful the price swings are and the high price per coin now and in the long term according to price predictions.
CFDs for fiat to crypto and crypto to crypto trading pairs are available for trading on advanced trading platforms like PrimeXBT and can be much more profitable than investing alone, as the price history of these assets has clearly shown. Registration is easy and takes less than 60 seconds and a 0.
The award-winning platform also offers technical analysis software and a variety of customizations to give traders the ultimate in control. It functions very similar to Bitcoin and even has the same block reward halving system to reduce the LTC supply every four years. The most significant difference is in transaction speeds ranging from 2. Litecoin will never be as big as Bitcoin in terms of price per coin or market capitalization.
The secure hash algorithm is a function which is commonly used in blockchains and was pioneered by Bitcoin. Bitcoin mining is considered more complex than Litecoin mining because of the algorithm differences. Over the years more and more computing power has been committed to securing the Bitcoin network. As a result, the Bitcoin mining difficulty has increased dramatically until the present day. Bitcoin was designed to confirm transactions at around minute intervals.
Mining hardware has evolved from your basic desktop processing into specialized chips called ASIC s. The application-specific integrated circuit was designed purely for cryptocurrency mining.
Image courtesy of Yuji Nakamura. It was initially designed to be ASIC resistant to prevent the kind of mining centralization we are currently seeing in proof-of-work blockchains. However, with dedicated research and development, established miners have regardless been able to build specialized hardware specifically for mining Litecoin.
A major advantage Litecoin has over its bigger brother is the 2. At 4x the speed of Bitcoin, it seems like Litecoin would be more of a contender for merchant adoption. Both coins, however, have probably lost that edge to near-instant transactions from newer contenders. A traditional international transfer through the existing banking system can take anywhere between a ridiculous business days to confirm.
Keep these kinds of use cases in mind. As cryptocurrency adoption grows, the best mining opportunities will take place where it makes the most sense for users.
We are currently in a tricky market as the fall in cryptocurrency prices has made mining unprofitable for many smaller miners. Any investment made today should consider the longer-term price chart of Litecoin.
Your preferences may differ so always make a point of doing your own research. This basically allows the miner to steal money from the network by double spending. Such an attack would initially be very profitable for the miner.
However, the network would ultimately become unusable and coin holders would move their funds to a safer blockchain. Mining centralization remains a concern for Bitcoin as Bitmain continues to dominate the market. In the beginning, just about anybody could mine Bitcoin with a stock-standard computer.
Then, shrewd miners saw the immense profits that could be made via mining. These days companies have dedicated research and development teams and put large budgets in place to stay on the cutting edge of cryptocurrency mining tech.
If you took the leap and invested in some reasonable hardware you now have the option of contributing your hash power to a group of miners known as a pool. Both Bitcoin mining pools and Litecoin mining pools offer their respective miners a lower barrier to entry to mine. The shared power of the pool allows you to collect your reward in proportion to your power contribution.
The major advantage of this approach is a regular payout on a predictable time-frame. This is centralizing the network, even if only by a fraction.
Percentage breakdown of Bitcoin mining pools courtesy of Blockchain. Percentage breakdown of Litecoin mining pools courtesy of litecoinpool.