After Bitcoin rise in popularity, Litecoin has also seen a surge in its price in the digital currency market. Investors have come to realize that Litecoin is an excellent alternative to Bitcoin. Yes, there is no denying that Bitcoinis still the dominant player in the market and in terms of market capitalization, it holds the largest share. However, it is also a fact that it is now losing ground to other digital currencies because it has become expensive to buy and there is also the question of mining efficiencies. If you are trying to decide whether to buy Litecoin or not, listed below are some ways it can be a better choice than Bitcoin:
- An improved version of Bitcoin
Bitcoin and Litecoin are often compared with one another and for good reason too; the two digital currencies are connected closely as Litecoin has been heavily influenced by its older peer when it was first launched in 2011. The nature of both these currencies is deflationary and their supply will begin to taper off in the next few years. Nonetheless, there are also differences between the two. First, the lifetime cap of Litecoin is 84 million coins and this is four times higher than the total number of Bitcoins that will be mined. In conclusion, if there is an increase in demand, Litecoin will be available in greater supply as opposed to Bitcoin.
- Faster block generation
The block generation time is another aspect where Litecoin offers considerable improvement in contrast with Bitcoin. The latter takes 10 minutes whereas the former’s block generation time is 2.5 minutes. Talking for all intents and purposes, this implies the exchanges including Litecoin will be affirmed four times speedier when contrasted with those made with Bitcoin. As a matter of fact, Litecoin can turn out to be an excellent medium of exchange for small transactions as the fee will be lower than those charged for Bitcoin. In terms of investment, this means that buying and selling Litecoin will be cheaper for investors.
- Easier Mining
The proof of work concept is used in Bitcoin and Litecoin alike, but as far as mining operations are concerned, the algorithms used by the two are quite different. The one used by Litecoin is much simpler as it can be mined on computers that don’t take up a lot of energy. This could be a major advantage for Litecoin over Bitcoin because worldwide mining operations consume massive amounts of electricity and there is already a shortage of graphic cards required for mining rigs. This will work in favor of Litecoin as it is simpler and can be mined on PCs whereas Bitcoin doesn’t share this characteristic.
These are the key differences that potential investors will find between Litecoin and Bitcoin and they make the former an excellent investment option in today’s market. You can simply buy Litecoin with credit card easily and become an investor in the cryptocurrency market, which is expected to provide huge returns in the next few years.
