Back in 2009, Bitcoin was introduced as the first cryptocurrency. The code that it ran on was open source code, which allowed anyone to modify it. Since then, other cryptocurrencies have begun with modifications of the code used for Bitcoin. These different cryptocurrencies have met with less success than Bitcoin.
Litecoin is a newer cryptocurrency than Bitcoin and was launched in 2011. It is fast becoming a big contender to the latter mostly by being associated as the silver to Bitcoin’s gold.
The two cryptocurrencies are generated with mining techniques. Litecoin was developed to offer more benefits than Bitcoin. It was developed by one of Google’s former engineers. The main difference for investors was it offered a shorter time to generate blocks than Bitcoin.
The Algorithm Difference
Litecoin offers more benefits through its algorithm for miners, investors and those who are curious. Bitcoin uses a hashing type of algorithm which has made a bit of a stir for both the cryptocurrencies in their race to become easier for investors to use but harder for investors to hoard.
A few years ago, Bitcoin was practically gobbled up by an investor who was able to section off huge blocks of the cryptocurrency thereby preventing others from purchasing the coins at a fair enough price to earn an investment themselves on.
Litecoin uses Scrypt which makes calculations faster and with larger amounts of data. This can make it put pressure on a computer’s RAM. For any investor that is serious about trading, this is a concern.
Which is the Better Investment?
While most anyone just wants to know which cryptocurrency is better the answer is really up to the individual themselves. Litecoin seems to be living up to its expectations of being the silver to Bitcoin’s gold. It has had its moments where its value struggled to be defined. Now that it uses better technology, this is not the case.
It now uses Segregated Witness or SegWit. This blockchain solution originally was designed for Bitcoin. Bitcoin has started to switch back to using it making it more of a level playing field for both.
Many cryptocurrency investors are hopping on social media and Youtube to explain the differences between the two in terms of which is better to invest in. More of them are displaying flowcharts that indicate there is a clear rise in the investment of Litecoins.
No one can predict exactly what the future holds. But, if the two continue to use the right algorithms and mining technology, they both could be comparable in terms of value.
Analysts believe that the market has simply had an uptick based on the announcement of new technology being implemented. Cryptocurrencies of all kinds tend to jump in value when there is anything new occurring on any front. Most traders and investors want to know how long Litecoin can remain a part of the so-called crypto-eco-system.
Bitcoin has been around longer, but Litecoin offers a lot in the way of moving forward faster for the benefit of those who invest.
Should you invest in Litecoin or bitcoin? The answer lies in what kind of investor you are. Litecoin is quickly developing and branching out using Segwit. This makes it harder for people to mine for coins using different software which was a problem with Bitcoin in the past.
More people can purchase Litecoin now that it is available on Coinbase. It is less expensive than Bitcoin but again, Bitcoin has been around longer than Litecoin.
You will want to speculate carefully for yourself. Research what you can before you make any purchases.