Last week was a great week for Litecoin and Bitcoin. Bitcoin was able to break the $ 6500 resistance level and Litecoin broke the $ 60 resistance level. In addition, Litecoin added a platform to SFOX that exposed it to institutional investors. So, clearly, Litecoin is making giant strides that will secure its position in the crypto space now and in the future. But is it good enough to beat bitcoins? Well, it is good to note that it is based on bitcoins with some key differences. So, to really understand it, we have to consider the key differences between Litecoin and Bitcoin.
Key difference between Litecoin and Bitcoin
At the basic level, the two share a lot, mainly because Litecoin was developed as a bitcoin copy. Some similarities include mining, supply limitation and halt blocking every four years. The two currencies also saw the fastest rise in 2017 prices. When bitcoin went from less than $ 1000 to over $ 19,000, Litecoin started the year under $ 100, to reach over $ 300. However, different differences distinguish them and are the only reasons that make a better investment for the future than others.
The first fundamental difference in the functionality of the two coins is the speed of transactions. Here, Litecoin arrives later, using only part of the time it takes to process a bitcoin transaction. Where bitcoin takes about 10 minutes, Litecoin takes only 2.5 minutes. This makes it a favorite currency for users who make transactions.
Although the two share the mining characteristics, they both adopt very different approaches. Bitcoin uses SHA-256 which makes it difficult to find new blocks. To be successful using the SHA-256 algorithm, one requires professional hardware and ASICs. It is also considered very complex to use and very few people have succeeded in bitcoin extraction. Mining activities have been largely entrusted to large institutions that can afford the hardware, management costs and understand the operation of the process. Litecoin, on the other hand, simplifies this by using the Scrypt algorithm, this makes it simple to use with ordinary PCs connected to the Internet. It also reduces the amount of energy required to extract.
It does not need to mention that the bitcoin creator is still unknown having only revealed an alias name "Satoshi Nakamoto." The creator of Litecoin is Charlie Lee, a former Google engineer and a Litecoin evangelist, even though he sold his Litecoin coins.
Charlie Lee, the founder of Litecoin, has previously described Litecoin as the silver for Bitcoin's Gold. But, as regards the signals, this could be vice versa. However, the massive adoption of bitcoins can not go unnoticed and is the main reason why it is stronger in numbers on the market.
So which of the two is better to invest in the long run?
Although technologically Litecoin was based on bitcoin, the currency was able to improve the bitcoin deficiencies making it better. This prepares him for future adoption with investors starting to understand what he offers against bitcoins. The currency also continues to create new collaborations every day, these partnerships are vital to the success of the currency in the future. They signal the trust and legitimacy of the project.
Another crucial reason why Litecoin is the best long-term investment is that the purchase price is currently low and the potential return is high. If you invest in a single Litecoin, you will only pay $ 60 and you can earn up to $ 300 and the risk will remain $ 60. However, if you invest in a bitcoin, you have invested $ 6,500 and earn $ 19,000, but you lose $ 6,500. It is better to invest in the investment that is going to lose you less, but continues to earn more.