A Brief History of Litecoin and Bitcoin
In November 2008, a mysterious programmer named Satoshi Nakamoto wrote an article. The article was titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” And exactly at that time that the first cryptocurrency appeared.
Bitcoin was the first true digital currency. He promised a bank-free future. He gave a future in which people could send money to each other around the world quickly and safely.
In February 2011, 1 bitcoin was worth 1 US dollar. By June 1, Bitcoin was worth $ 31. Over the next few years, Bitcoin has become more and more popular. However, not everyone was happy with the way it worked.
Charlie Lee thought Bitcoin could do better. He decided to change some of the lines of Bitcoin. He wanted to make transactions faster and cheaper. His ideas sparked controversy within the community.
Disagreements between users over currency rules are called forks. If disagreements arise on significant issues, then the cryptocurrency can split into two camps with different rules that will have nothing in common with each other, except for history. This is called a hard fork.
On November 7, 2011, Bitcoin split into two parts. The hard fork created a new coin called Litecoin. Two years later, Litecoin’s capitalization was $ 1 billion (USD).
Both coins are very popular now. Which one is the best, you ask? Is it possible to have both or will one replace the other? These are complex questions.
Difference between LTC and BTC
To answer these questions, you need to compare Bitcoin and Litecoin.
Litecoin was created because Charlie Lee wanted to change the way Bitcoin works. This is the first difference between them:
The peculiarity of Bitcoin technology is that it is a blockchain. Blockchain is a huge digital database for storing transactions. The record is stored on a network of thousands of computers called nodes.
Users can send money to each other all over the world. They don’t need to use banks or worry about high fees and exchange rates.
Bitcoin mining is expensive. This requires a powerful computer, and the process consumes a lot of electricity. It’s also pretty slow. Each new block takes about ten minutes before the block is added to the blockchain. And this is where Litecoin is different.
Each new block of transactions takes just 2.5 minutes before being added to the Litecoin blockchain. The reward for each confirmed block is 25 new Litecoins (LTC).
Bitcoin fans say SHA-256 is safer than scrypt. They say this because SHA-256 takes longer and is therefore more likely to detect errors. They think scrypt makes the verification process too fast.
The Bitcoin mining algorithm is called SHA-256. This is what Charlie Lee changed. The algorithm he created is called scrypt. Mining Litecoin with scrypt is 4x faster than SHA-256 and requires much less electricity.
However, Litecoin fans believe that Charlie Lee’s changes to the Bitcoin rules are much better. As it makes Litecoin a cheaper and faster platform. Not a single blockchain has been hacked.
Who do you think has the best technology? In my opinion Litecoin is superior.
Let’s see the potential investment in both coins …
If something is appreciated, then it can be exchanged for goods and services. A store of value is not only what is valuable now, but what remains valuable. The most famous store of value in the world is gold. Gold has been valuable for hundreds of years in every country on the planet, which is why it is called the precious metal.
Currencies can also be stores of value.
Cryptocurrencies are still new. However, they have the potential to become means of storing value.
Gold is an excellent store of value because it is precious and in limited quantities in the world. Gold protects against inflation. This means that its value does not increase much. Its cost is predictable and reliable.
This may also work for Bitcoin and Litecoin. They both have limited supplies. In total, there will be 21 million Bitcoins, and Litecoins – 84 million. This means that both of them can be good stocks of value.
Cryptocurrency has not yet replaced money. You cannot go to your local supermarket and pay with cryptocurrency. But this day is getting closer …
Litecoin is not as popular as Bitcoin, but its technology is more suitable for daily spending. Litecoin transaction times are four times faster than Bitcoin. This could attract businesses and customers to use Litecoin instead of Bitcoin.
Bitcoin is more popular and is accepted as payment in different places. It also uses zero-confirmation transactions to make purchases faster.
So which is more democratic, Litecoin or Bitcoin?
The main difference between Litecoin and Bitcoin is how mining works on each platform. As I said earlier, Bitcoin mining is more difficult and more expensive than Litecoin mining. So, to make money mining Bitcoin, you need a very powerful computer.
It could also be argued that the amount of energy used to mine Bitcoin is harmful to the environment.
Charlie Lee knew all this when he created Litecoin. Litecoin can be mined using conventional computers. Litecoin mining does not use ASIC miners. Thus, new coins go to a wider group of users.
Litecoin is more democratic because more people can participate.
All aspects about currencies discussed above it is just facts and all people have their own opinion abot this two cryptocurrencies.
If in my opinion Litecoin is better that Bitcoin still does not change the fact that Bitcoin is still the largest cryptocurrency.
What do you think about Litecoin and Bitcoin? Is Litecoin Better? Can you make your Bitcoin prediction? Do you think they can work together? Let me know!
I think they are more like Coca-Cola and Diet Coke. Some people love Coca-Cola, others love the taste of Coca-Cola, but with less sugar. Coca-Cola and Diet Coke are found on supermarket shelves around the world. They are next to each other and will probably always be.