Bitcoin vs Litecoin: Comparing Digital Gold and Silver Side by Side Litecoin and referred to as silver to Bitcoin are often thought of as digital gold. Since then, early crypto-firsts have gone hand in hand; However, there are several key differences between them that make them significantly different as an investment and trading asset. This guide comparing cryptocurrencies will help explain all the ways Litecoin is similar to Bitcoin and highlight the key differences that separate them . When all the pros and cons are displayed on the line, the answer to which it is better to invest, Litecoin vs Bitcoin, will become clearer. There are also key details on each asset price forecast, a look at past price history, and information on how to trade the two cryptocurrencies instead. Litecoin vs Bitcoin: What are the main differences between Digital Silver and Gold? Litecoin uses a fork of the Bitcoin Core source code, so it is bound to share several key similarities.
They also target a similar investing audience and have the same currency as the use case, which makes them compete with each other as well. Here are the main ways in which the two assets differ, along with the ways in which they are similar to each other. Concepts and Creativity Bitcoin is the first ever cryptocurrency and the first peer-to-peer form of digital cash. The original was created by the mysterious Satoshi Nakamoto, who, even today, is still unknown and presumed dead. They made the decentralized cryptocurrency so that it works without the need for a third party or intermediary. However, they also left behind a legacy and a financial revolution that has since taken on a new life and community of its own. Bitcoin started its life relatively worthless and very hard to come by.
It was something that only early tech enthusiasts could access, through mining or through contact with someone who was mining. Early users did not know what it was worth one day, and treated it carelessly, until they lost it. For example, Bitcoin was traded first for pizza at a rate of 10,000 for pizza with add-ons making it the first transaction. Later, it became the preferred currency of the dark web market Silk Road due to the anonymity it provides.
However, its use and adoption during that point could be what helped the Bitcoin network begin to grow, and now, due to the network’s impact, it is an unstoppable force to be reckoned with with a market cap and greater power requirements than some countries. The cryptocurrency has also since grown in value to nearly $20,000 per coin. It also helped create an entire crypto market, filled with altcoins like Litecoin that try to beat Bitcoin at their own game but ultimately fail to do so. Instead, these altcoins live side by side with Bitcoin in harmony, each with their own advantages and disadvantages. Litecoin was created out of creator Charlie Lee's fascination with bitcoin. The altcoin shares the Bitcoin code, simulates the same block reward structure, and more. Both work as payment currencies, although Litecoin is faster. Litecoin is cheaper per currency than Bitcoin, which has helped create the silver and gold nicknames and the connection between the original cryptocurrency.
Litecoin's belief system is the same as Bitcoin's that only strives to do so with a speed and a slightly faster transaction rate. The transactions and speed of bitcoin were the first of its kind, so all it really had to do was work. Scalability, capacity, speed, and other issues will be addressed as more developers embark on an open source project and build Layer 2 technologies such as Segregated Witness and Lightning Network.
Since Litecoin code is similar to Bitcoin code, it is often used as a test for these technologies before they hit Bitcoin. But by default, Litecoin is faster than Bitcoin. Bitcoin transactions take approximately ten minutes per blockchain confirmation. The cryptocurrency can handle approximately 5-7 transactions per second. Meanwhile, Litecoin generates blocks in 2.5 minutes and can handle 56 transactions per second. The cryptocurrency got its name as a lightweight version of Bitcoin due to these attributes. Litecoin is often used to send cryptocurrencies from one platform to another for this reason, and because of the low cost and speed associated with its transactions. Supply and Distribution Both cryptocurrencies were extraordinarily early on and are highly decentralized and widely distributed. Of course, there are plenty of whales that own both, just because of how cryptocurrency came about.
However, supplies are scarce due to the way each asset's network is encrypted, and no more coins can be generated. In addition, a lot of coins are currently in circulation, which makes them even rarer than they may seem. It is also assumed that millions of coins were lost. For example, the creator of Bitcoin is assumed to be deceased and is said to have wallets totaling over 1 million out of a total BTC supply of 21 million.
Both also rely on the same reward halving mechanism and prove a working consensus method to secure the underlying network of the network that each token supports. Things are different in terms of supply and distribution when it comes to Litecoin's bid of 84 million LTC. This is four times the number of Litecoin which is why the price of each asset is much lower than the price of Bitcoin. This also means that the price of Litecoin can never reach the high of Bitcoin. Use Cases and Target Market The biggest challenge facing Litecoin is the fact that Bitcoin and Litecoin are currently targeting the same investors and traders.
Ethereum, for example, has a completely different use case, and developers are building smart contracts and decentralized apps on top of it. In contrast, both Bitcoin and Litecoin are used as payment currencies or store of value. Bitcoin and Litecoin are called digital silver and gold. Like the cryptocurrencies referred to, each of the precious metals has a finite supply, is used as a store of value, and has been used as a currency for ages. Few other assets have these traits, which makes it unique as an investment or trading asset. However, things may change soon for Litecoin, as Bitcoin is getting more expensive day by day and Litecoin remains relatively affordable by comparison. Litecoin has also been added to PayPal along with Bitcoin, Ethereum and Bitcoin Cash, exposing the alternative currency to the 346 million major users of the payment service. If each user wants to buy only one Litecoin, currently priced at around $50, there is only enough for each user to own 0.24 LTC.
There is much less than that in terms of bitcoin that can be traded, but at around $14,000 currently, far fewer people would go for the whole coin. If and when Litecoin is regularly adopted as a payment currency, it will have more utility compared to Bitcoin due to its high speed, low transaction fees and higher rate of transactions per second. But since cryptocurrencies are currently not used for anything more than speculation or a store of value, this could be out of some ways. The pandemic has accelerated the trend towards digital currencies, so it could also happen sooner than expected, especially now with PayPay. LTC vs BTC: Which is better to invest? As for the differences described above, one will make a better investment than the other. However, technical analysis, expert price predictions, and historical price action can also tell what to expect in terms of both the near-term and long-term performance. Below we will compare Bitcoin against Litecoin in terms of price action, forecasts , charts and more. Litecoin vs Bitcoin: Historical Price Action Review When Litecoin first hit the crypto market, it traded at around $3, according to CoinMarketCap. At its peak, it was trading at $375 per LTC token.
Litecoin has gone through two bear markets now, and after the first peak it dropped as low as $1. After the 2017 high, Litecoin has dropped to around $20. This strong volatility makes Litecoin an excellent asset for trading, even more so than investing. Investors who bought at the high price will get their money out by holding the full pullback. Meanwhile, traders who short LTC using CFDs on cryptocurrency margin trading platforms like PrimeXBT would have made profits instead. The same goes for Bitcoin. Bitcoin was first sold at a fraction of a penny and rose to $20,000 in 2017. It later dropped to $3,200. After hitting this bottom, Bitcoin surged back to $14,000, and then fell back below $4,000 again. Now, it's back at $14,000 and ready for a new bull market. By the time you read this, the price of the cryptocurrency may be out of control. Since then Litecoin has lagged behind Bitcoin, however, this makes Litecoin more likely to outpace Bitcoin at some point again. The stages in which digital currencies like Litecoin outperform Bitcoin are called altcoin season and Litecoin has been excluded from among the past few years. After a lot of slack in Litecoin, and due to the sudden exposure of the supply of micro LTC to the 346 million PayPal users who are more likely to buy the cheap currency than Bitcoin, it is very good to make a solid investment in the future again.
Litecoin vs Bitcoin: Litecoin Price Predictions Litecoin price predictions are not close to Bitcoin price predictions, but this is due to the difference in maximum supply and circulating supply for each coin. It would take a lot of capital to take Litecoin to the Bitcoin price, and Bitcoin is likely to rise with it and absorb any chance of getting bigger. However, many people believe that Litecoin can reach $3,000 per token. Litecoin started at $3 and made over 100 times reaching $375 at an all-time high. It would take less than 100x from current prices to reach $3,000 per token, and only 10x from its previous all-time high. However, bitcoin is expected to reach $1 million to $500.00 per bitcoin in the future, and predictions are being made by some of the smartest minds and inventors in the world.
And while this number is much higher per coin, making it the most notable number when it comes to major analyst calls, in the past Litecoin has far outperformed Bitcoin in terms of ROI. Litecoin vs Bitcoin: A Must Read Crypto Market Conclusion When it comes to Bitcoin vs Litecoin, it is hard to describe a clear winner, and despite their many similarities, the two assets still complement each other well. For this very reason, this is why cryptocurrencies are referred to as digital silver and gold. The two precious metals have always had similar reasons for holding one or the other, and they have been used for the same reasons. As an investment, both have done well over the centuries and their value has only increased.
It is also a great trading tool due to the volatility of the market . The same goes for Bitcoin and Litecoin, except for the highly charged volatility. And just like gold and silver, they have a unique relationship, so do Bitcoin and Litecoin. According to the gold-to-silver ratio, silver often performs better than gold after gold's rally runs out of momentum. Investors' money may move out of gold into silver. Oddly enough, the same behavior occurs in cryptocurrencies, where Bitcoin makes an excellent investment and trading asset due to how strong the price fluctuations are and the high price of each currency now and in the long term according to price predictions. On the other hand, Litecoin may not seem that exciting due to the current $50 per coin and $3,000 per coin predictions, it is much easier to own dozens of LTC than BTC, and the ROI is as strong if not better. LTC vs. BTC: How to Trade Litecoin with PrimeXBT Litecoin on PrimeXBT can be traded through LTCUSD or LTCBTC trading pairs. CFDs for crypto and crypto-to- crypto pairs are available to trade on advanced trading platforms like PrimeXBT and can be more profitable than investing alone, as the price history of these assets clearly shows.
Instead of buying and holding these highly volatile assets, PrimeXBT traders can buy Litecoin or Bitcoin long or short term, or even trade the LTCBTC trading pair for a profit regardless of the direction of the markets . Signing up is easy and takes less than 60 seconds and 0.001 BTC minimum deposit to get started. After making a deposit to a BTC address, users can fund a trading account and access positions on more than 50 trading instruments all under one roof. The award-winning platform also offers technical analysis software and a variety of customizations to give traders the utmost in control. FAQ: Frequently Asked Questions About Differences Between BTC vs LTC Is Litecoin a Bitcoin Fork? Litecoin is a fork of the Bitcoin Core source code , created by former Google engineer Charlie Lee. It works very similarly to bitcoin and has the same block reward halving scheme to reduce the supply of LTC every four years. What is the difference between Litecoin and Bitcoin? The most significant difference is transaction speeds that range from 2.5 minutes to 10 minutes, and transactions per second range from 5 to 7 to more than 50 transactions per second. Litecoin was designed to be a faster and more efficient version of Bitcoin, hence the name "lite".
Will Litecoin be as big as Bitcoin? Litecoin will not be as big as Bitcoin in terms of currency price or market cap. This is not possible due to the inception of Bitcoin , in short supply, and a more comprehensive market cap spread across fewer coins. Is Litecoin a good investment? Litecoin makes an excellent investment, but it is a better trading tool. During a bear market, it failed as an investment but made a great trading asset.
Is Bitcoin or Litecoin a better investment? It's hard to say, and anything is possible. Bitcoin has more support, wider adoption, and it's already in the lead. But Litecoin is cheap for every coin, faster, and still has a lot of value. Like gold and silver, it doesn't matter if you invest in Bitcoin or Litecoin. Both can go great together in the same wallet. Should I buy Litecoin or Bitcoin? Similar to gold and silver, buying both can be a good idea because both offer value. They are also great for trading and can be more profitable with proper risk management and skills..