The most significant difference between Litecoin and Bitcoin is its hashing function. As mentioned earlier, Bitcoin uses SHA-256, which is processed very quickly on the ALUs of graphics processing units.
Another area in which Bitcoin and Litecoin differ significantly is their market capitalization, the total dollar market value of all the created coins. Bitcoin is more popular because of its ability to be mined by large farms and mining pools; also, demand for it has risen so high that it commands a very high cryptocurrency-to-dollar exchange rate. Litecoin has a much smaller market capacity because Bitcoin has a smaller supply and greater demand.
Another of the main differences between Bitcoin and Litecoin concerns the total number of coins that each cryptocurrency can produce. This is where Litecoin distinguishes itself. The Bitcoin network can never exceed 21 million coins, whereas Litecoin can accommodate 84 million coins.
In theory, this sounds like a significant advantage for Litecoin; however, supply and demand generally dictate prices for commodities and investments, along with consumer and investor sentiments. Both appear to believe that Bitcoin aligns with their interests, values, and financial goals, so its price reflects that.
Although technically transactions occur instantaneously on both the Bitcoin and Litecoin networks, time is required for those transactions to be confirmed by other network participants. Litecoin was founded with the goal of prioritizing transaction speed.
The Bitcoin network’s average transaction confirmation time (the time it takes for a block to be verified and added to the blockchain) is around nine minutes per transaction. However, this can vary widely depending on network traffic. The equivalent figure for Litecoin is roughly two and a half minutes.
Is Litecoin Better Than Bitcoin?
Which is better depends on your goals, what you want to do with your coins, and your views on cryptocurrency. Litecoins are generated faster than Bitcoin, but Bitcoin is worth more. Bitcoin might be better if you want more value per coin, while Litecoin might be better if you want more coins at a lesser value.
How Many Litecoins are Left?
Litecoin has a limit of 84 million coins. There were 69.2 million on Dec. 18, 2021, so as of that date, there were roughly 14.8 million left.
Does Litecoin Have a Future?
Litecoin’s future depends on consumer and investor sentiments. Government regulations, economic conditions, government-sponsored cryptocurrency, and more can also affect cryptocurrency. It’s possible that technological advancements could even render cryptocurrencies obsolete.
Why Is Litecoin So Cheap?
Litecoin has a lower LTC/USD exchange rate and less purchasing power because it has a larger supply and lower demand than other cryptocurrencies do. This is largely due to consumer and investor perspectives—if a means of exchange can purchase more goods, it is worth more. If a commodity or investment has a higher value for people, they will pay more for it. Bitcoin is currently perceived to be a more valuable asset, so it is worth more.