Litecoin review: how it differs from Bitcoin, what will happen to the rate and how to buy. Forget about ether: Why Litecoin is the main competitor of Bitcoin The difference between Litecoin and Bitcoin
From the author: I've always wondered how someone can say that something is absolutely the best? They can only express their opinion, but there is nothing clearly better in the world. There will always be good competition. Let's look at the ring: there is a favorite and an outsider, but the latter has a chance. If he gets to the favorite, then the chances are good. The main slogan of today’s fight: “Bitcoin or Litecoin, which is more profitable?”
Two metals
Bitcoin was the world's first cryptocurrency and rightfully received the status of “gold”. Literally a few years later, its fork Litecoin appeared. Even though Namecoin was the first fork, it was LTC that became silver. Thus, two precious metals were formed in the world of cryptocurrencies.
What unites them? Both have a limited supply of 21 and 84 million coins respectively, eliminating the risk of inflation. Both are payment systems and are very actively used around the world today. But main question is BTC and LTC? Which cryptocurrency is better and can win this crypto battle?
How to evaluate
It is impossible to give an unambiguous assessment of this. The world of cryptocurrency is not the world of boxing, and belts are not handed out here. I decided to divide this “fight” into four rounds:
- trading;
- investment;
- mining;
- transaction speed.
In addition, there will be some kind of bonus points that cannot be ignored. Based on the results, we will conduct a small analysis. Today we cannot make hasty conclusions, so we will have to wait until the end of the fight.
Trading
The gong sounded. This may be one of the toughest rounds for both representatives, and today they are about equal. However, Bitcoin is ahead of its rival. This is due to his status as the “father of cryptocurrencies.” Almost everyone in the world has heard about Bitcoin and everyone wants to get it. Litecoin, one way or another, is less popular.
We can draw some analogy with real precious metals. Gold and silver are known equally (unlike cryptocurrencies, they have been around much longer), but gold is valued many times more. Also on exchanges: at the time of writing, BTC's average trading volume was almost $6 billion, while LTC's was just under $600 million.
Both cryptocurrencies are traded on most exchanges and have approximately the same number of trading pairs. At the same time, Litecoin is significantly inferior in volume. Therefore, the round today remains with Bitcoin, and this will continue for quite a long time.
Investment
So to speak, this is where LTC gets its second wind. Investing takes place with a long-term perspective, so a very important indicator will be the percentage of exchange rate growth after a certain period of time. After all, the higher this percentage, the more profit will grow.
Where LTC differs greatly from BTC is the cost per coin. Let's say Bitcoin costs $10,000 and Litecoin costs $250. For the increase to be at least 10%, the cue ball needs 1,000 greens from above, while Litecoin at the same time only needs 25.
We know that one way or another, large traders have a significant influence on the growth of the exchange rate. So, it will most likely be much easier for them to raise digital silver by $25 with their actions than gold by $1,000.
Now imagine that Bitcoin rises in price greatly. Its indicators have a significant impact on the situation in the cryptocurrency market as a whole. This means that other coins, including Litecoin, will also grow. Accordingly, the growth of Litecoin, according to this logic, will be greater.
Thus, investing money in Litecoin for long-term storage in order to increase your capital, in our humble opinion, is much more profitable. As long as the cue ball shows an increase of even 30%, for Litecoin it will be 60. The second round is for silver, and the score becomes 1:1.
Mining
We cannot miss such an important element when we talk about cryptocurrencies. After all, their turnover and transactions live thanks to mining. This is the 3rd round, which will determine what is better to mine: Bitcoin or Litecoin.
Source: bitinfocharts (22.03.2018)
The Bitcoin algorithm is more complex, although scrypt requires large amounts of memory. But the point is that it is cheaper to assemble special equipment for SHA256 than for Scrypt, which means it is cheaper to buy it. Therefore, large companies dictate the rules of the mining game, collecting the bulk of the hashrate.
Soberly analyzing the main indicators, we can safely say that the mining round is for Litecoin today. The score becomes 2:1 in favor of silver, but let's take our time and watch the fourth round, as well as additional points.
Transaction speed
Imagine a boxer beating his opponent hard for the entire round. It is almost impossible that the situation will turn around in the next round. It's the same here. After all, in fact, the speed of transactions depends on mining, since confirmation and entry into a block occurs precisely by solving the hash function.
Continuing to draw analogies with boxing, let's say that it is more profitable to carry out transactions with LTC, since they will be completed faster. Time is money. In the cryptocurrency market, this phrase is more relevant than ever. Round 4 will be a simple game, the score is 3:1. But let’s not give all the laurels to Litecoin. Things can't be that simple.
Market capitalization
The first bonus and regeneration for the golden old man. According to Coinmarketcap, BTC outperforms LTC by about 16 times, giving it a significant advantage. In addition, the share of Bitcoin in the total capitalization of all cryptocurrencies is 44.2% (as of March 22, 2018). That is, it is practically on the same level as all cryptocurrencies combined. A kind of Chuck Norris in the world of cryptocurrencies.
Big Player Effect
Even though Litecoin mining is easier, it is better to invest in it, but who rules the show? Large players like Genesis Mining and Hashflare with their capacities, Chinese mining farms - they hold the main percentage of capacities. And if they throw all their energy into the cue ball, then Litecoin and the rest of the altcoins will remain at the bottom.
I hope you are not wearing rose-colored glasses and understand that the exchange rate is also controlled by several players with a large number of coins. They completely build a schedule, mocking the small fish. Thus, they simply do not allow any cryptocurrency to surpass Bitcoin in price.
Fiat competitor
This leads to Bitcoin becoming the main competitor to the dollar. If the trading volume of the cue ball is higher, it means that the most common pair on the exchange is BTC/USD. And by the way, the United States recognizes Bitcoin as a means of payment. Of course, they also recognize Litecoin, but business sharks want to own a more expensive, highly liquid asset. And that’s exactly what the cue ball is.
Attempt to fight back
After a series of devastating blows, LTC responds by having a public persona. Its creator is Charles Lee, whom many in the world trust and consider him an authority. Who is Satoshi Nakamoto? No one in the world will give you the answer except himself, his family and close friends. But can you find legitimate leverage?
The unknown sometimes scares us. The fact that Litecoin has a well-known and open personality is a powerful argument, but not enough. Cryptocurrencies started with Bitcoin, it is still the first. So this unknown is not so scary.
Gong
If this was a real fight, many would call it the “Fight of the Century.” Of course, there are many cryptocurrencies that can compete with Bitcoin (for example, Ether). But still there will be no exact answer to the question “what is more profitable”.
Each cryptocurrency has its own advantages and disadvantages. It is impossible to single out one as the best. This market is not as simple as it seems. Answering the question which is better, I will answer that you can also compare Adolf and Rudolf Dassler. They have created two world-famous sporting goods companies, each of which is trusted.
Bitcoin and Litecoin are trusted approximately equally. There are moments where the fork surpasses the father of cryptocurrencies, and there are times where it sits nervously on the sidelines. Do you think differently? Do you want to say that one of these coins is definitely the best? I will be waiting for your arguments in our comments and social networks.
The material was prepared by Maya Tikhonova, an expert on a website about cryptocurrencies CryptoRatings.ru .
Is Litecoin just another Bitcoin clone?
Yes and no. Litecoin is built on the Bitcoin protocol. This is still the same peer-to-peer network, consisting of a chain of interconnected blocks of information about transactions. It was formed through the voluntary support of participants who provide their computing power for processing transactions and generating blocks.
The essence and purpose of Litecoin are similar to the tasks that its older brother was originally intended to solve. It should serve as a means of payment that is more convenient, faster and cheaper than conventional national currencies.
Frankly, Litecoin has few differences from cryptogold:
- different algorithms for forming the “building blocks” of the blockchain.” While Bitcoin runs on SHA-256, Litecoin uses scrypt, developed by FreeBSD security officer Colin Percival. It was originally created for the Tarsnap online service, but it was also suitable for cryptocurrency;
- increased frequency of block generation. In the Bitcoin blockchain, a new block appears every 10 minutes, and in the Litecoin network this process takes only 2.5 minutes;
- Litecoin mining will stop when total number mined coins will reach 84 million. The maximum number of bitcoins is 4 times less - 21 million.
Why is Litecoin better than Bitcoin?
Litecoin developers never claimed to compete with the No. 1 cryptocurrency. On the contrary, they believe that Bitcoin will serve as the main digital coin. Litecoin will modestly take the place of its useful addition.
Not opponents, but comrades
As a result, our hero has no outstanding features, although there are advantages over Bitcoin:
- transactions are 4 times faster due to the reduced block generation time. Bitcoins reach the recipient in the best case 10 minutes after sending. A payment transaction can appear on the Litecoin blockchain after 2.5 minutes;
- smaller transaction queue. How faster network processes payments, the fewer transactions languish in the pool waiting for their noble miners. Consequently, transfers can be carried out quickly without increased fees;
- transactions are several times cheaper. In December 2017, the average fee for processing transactions on the Bitcoin network reached $52, and for the transfer of litecoins in the same period they paid $1.4. Now there is no rush in the market, so the fees have dropped significantly. But transferring Litecoins is still 3-5 times cheaper than Bitcoins.
The advantages are few, but they definitely make Litecoin a more profitable means of payment. Sellers will love the speed of transaction processing, and buyers will love the tiny fees.
Is it possible to mine it?
For each new block in the Litecoin network, miners today receive a reward of 25 coins, which at the current rate is about $2.5 thousand. It looks good, considering that this amount is distributed every 2.5 minutes. In addition, Litecoin is not very popular among industrial miners, so coins can be mined using relatively simple equipment.
Litecoin mining on Asic (Gridseed)
Does all this mean that it’s time to invest money in Litecoin mining? Unlikely, and here's why:
- too difficult. When the price of the coin rose along with the entire market in December 2017, many players switched their computing power to Litecoin mining. This, of course, led to a jump in mining difficulty. Since then, the coin has fallen in price, the hype around it has cooled, but the difficulty of mining is still relatively high and does not correspond to the cost of the coin;
- too cheap. The current Litecoin rate barely covers mining costs. Only miners who have access to very cheap electricity, or better yet, completely free, will be able to make a small profit;
- the reward will soon decrease. In the spring of 2019, the reward for generating a block of the Litecoin network will be halved: instead of 25 coins, miners will be given only 12.5 coins. If the price of the cryptocurrency does not double by that time, Litecoin mining will bring nothing but losses.
Can Litecoin become the #1 cryptocurrency?
Charlie Lee initially positioned his creation as a natural addition to Bitcoin. In his opinion, cryptogold is best suited for storing savings, but when you want to spend your savings, it is better to use Litecoin. Indeed, it is more convenient and profitable for making purchases or paying for services.
Litecoin can work in tandem with Bitcoin, but will never surpass it in price and market position. Moreover, if cryptogold does go down the drain, it is highly likely that Litecoin will follow suit.
What will happen to his course?
From 2013 to March 2017, the price of the coin showed amazing stability. It fluctuated almost all the time in the range of $3-5. However, last spring everything changed. The coin rose rapidly for several months until it crossed the $350 mark in December. The rebound was painful - the coin is now worth about $100.
In general, Litecoin follows in the footsteps of Bitcoin, repeating all the bends of its price chart, falling and growing along with it. If the “bears” continue to put pressure on the market (guys who do not buy cryptocurrency for a long time in the hope of its growth, but earn money immediately, on exchange rate fluctuations), our coin will not resist and will sag. She can just as easily mount the bull and repeat the heroic feat of December 2017 and even get to and beyond the $400 level. But will this happen?
Not a disaster, but better times already behind
Analysts’ forecasts about the future of the crypto market in the coming years vary. Many say that first-generation coins that are not designed to solve specific problems will leave the market. Litecoin also risks being included in this number. This does not mean that it will disappear from the market within 1-2 years or will never again update its historical highs. But the longer-term prospect is vague.
In an alternative scenario, Bitcoin will strengthen its status as digital gold, and the spread of cryptocurrency as a means of payment will continue. Then Litecoin will have a good chance of rising in price. This will happen through the conclusion of partnership agreements with companies, retailers, all kinds of online services, etc. The wider the circle of organizations that accept litecoins, the higher the price of the coin.
The only pity is that no state wants to recognize cryptocurrency as a legal means of payment. This does not prevent many shops and cafes from accepting digital coins, but there can be no mass distribution of crypto payments in such realities.
The number of cryptocurrencies is growing every year. Despite the fact that Bitcoin is the most famous and the first cryptocurrency that appeared in the world, there are many others that compete with Bitcoin. They all have their various functions and benefits. If you don't know yet, you can read our previous article about it.
Litecoin ( LTC).
Litecoin is a peer-to-peer digital currency that allows instant payments anywhere in the world.
Like all cryptocurrencies, Litecoin is an open-source global payment network that is completely decentralized, without any central authority.
Litecoin's creator, Charlie Lee, essentially copied Bitcoin but changed a few things. The Litecoin network aims to process a block in 2.5 minutes, rather than 10 minutes like Bitcoin, which, according to the developers, allows for faster transaction confirmation. On the other hand, the downside of faster block time is the increased size of the blockchain and the increased number of orphaned blocks. Litecoin is based on the Bitcoin protocol, but differs from it in that it can be efficiently mined using hardware consumer class.
Litecoin provides faster transaction confirmations (average 2.5 minutes) and uses a strict algorithm predictive analysis encryption-based data, designed to work with regular computers and GPUs that most users have. The Litecoin network plans to produce 84 million units of the currency.
One of Litecoin's goals was to provide a data mining algorithm that could run simultaneously on the same hardware used to mine Bitcoin. With the rise of dedicated Bitcoin mining ASICs, Litecoin continues to meet these goals.
Differences between Litecoin and Bitcoin.
Litecoin offers the following main differences from Bitcoin, which, according to its developers, will make it better than Bitcoin.
1. The scrypt hashing algorithm for Litecoin, in contrast to the SHA-256 algorithm for Bitcoin.
2. Litecoin has a total number of coins of 84 million, as opposed to BTC’s 21 million.
3. It takes 2.5 minutes to create a Litecoin block, which is 4 times less than Bitcoin.
4. The difficulty of creating a block for Litecoin changes approximately every 3.5 days, while for Bitcoin it changes every 2 weeks.
The significant difference between Bitcoin and Litecoin is the hashing algorithm each uses to solve a block, as well as the number of coins distributed each time a solution is found.
Litecoin uses the scrypt hashing algorithm, while Bitcoin uses the SHA-256 algorithm, which is considered relatively more complex. Using the scrypt algorithm allows Litecoin to interact with RAM faster. This significantly speeds up mining. Each block is processed on average in 2.5 minutes, and in Bitcoin it takes 4 times longer. This allows you to generate digital currency faster.
The original purpose of using scrypt was to allow miners to mine both Bitcoin and Litecoin simultaneously. The choice to use the scrypt algorithm was also partly to avoid giving GPU, FPGA and ASIC players an advantage over CPU miners.
Due to Litecoin's use of the scrypt algorithm, creating FPGAs and ASIC devices for mining Litecoin is more difficult and expensive to produce than for Bitcoin, which uses SHA-256.
It is mined in a similar way to Bitcoin. Litecoin also has a fixed supply, and will eventually have a total of 84 million coins in circulation, which is 4 times more than Bitcoin.
How to mine Litecoin?
As mentioned above, Litecoin and Bitcoin use different hashing algorithms. While Bitcoin uses SHA-256 (short for Secure Hash Algorithm 2), which is considered relatively more complex, Litecoin uses an algorithm that uses more RAM called scrypt.
Different algorithms mean different hardware, and you must be sure that your hardware meets the necessary requirements for Litecoin.
Initially, miners received 50 Litecoins per block, the reward amount is halved every 4 years (every 840,000 blocks). Currently you can get 25 Litecoins per block.
In the case of Bitcoin mining, you need a processor with an incredible amount of processing power that is usually not available to regular computers. Litecoin uses an encryption algorithm that uses RAM RAM, not CPU power.
With the increasing value of Bitcoin, miners are trying to get as many Bitcoins as possible and creating a race for computer power. A person with a more powerful computer has a much better chance of mining more Bitcoins than a miner using more traditional mining methods. This is all because of the hash cryptography that is used to mine Bitcoin.
Litecoin has an advantage here as it requires more memory rather than processing power and the need for more powerful processors disappears.
How to buy Litecoin?
If you want Litecoin but are not interested in developing it, this cryptocurrency can be purchased using another cryptocurrency such as Bitcoin on specialized exchanges. Some of these exchanges or other exchange services such as , , , , also allow you to purchase LTC with any fiat currency, such as US dollars or Euros.
How are Litecoin transactions different?
Litecoin thanks to more rapid creation block can manage more transactions than other cryptocurrencies such as Bitcoin. For example, Litecoin creates a block every 2.5 minutes and a merchant will be able to complete 4 transactions in 10 minutes, while with Bitcoin you can complete one transaction in 10 minutes.
WalletsLitecoin.
Like Bitcoin and many other cryptocurrencies, Litecoin is usually stored in a digital wallet.
Exist Various types wallets, including those that are software based and reside on your computer or mobile device, hardware wallets, as well as online wallets that do not require installation software. Another safe one, but admittedly outdated and somewhat complex method Litecoin storage - create a paper wallet, which involves creating and printing a private key on a computer.
Each wallet has private keys needed to receive and send coins to and from your Litecoin address.
These wallets exist as desktop or mobile software and are available for almost all popular operating systems and devices. Besides third party applications, such as Exodus or Electrum-LTC, laptop and desktop users can also install Litecoin Core, which is a full-featured client created and updated by the Litecoin development team. Litecoin Core downloads the entire blockchain directly from the peer-to-peer network, avoiding any middleman in the process.
The future of Litecoin.
Litecoin is considered a silver digital currency, while Bitcoin is considered its gold equivalent. They are both deflationary currencies and it remains to be seen how the supply difference will affect the value in the coming years. Litecoin has a final limit of 84 million coins compared to Bitcoin's 21 million and how this will affect the final price is unknown. Currently, the value of 1 Litecoin is approximately equal to 0.01 Bitcoin, but Litecoin can still attract a lot of investment.
Even though Litecoin's market cap pales in comparison to Bitcoin, Litecoin is still in the top five best cryptocurrencies at the time of publication. Although these rankings fluctuate depending on the price and number of coins in circulation.
New types of cryptocurrencies are appearing today like mushrooms after rain. However, as in any market, there are always sharks and fry. In the cryptocurrency market, such sharks can be called Bitcoin, Ethereum and Litecoin. In this article we will try to compare these currencies.
Bitcoin was first.
Since its release in 2009, Bitcoin has become the most famous and most valuable cryptocurrency. But this is not the only major market participant.
Another prominent representative of the cryptocurrency market is Litecoin, which entered the game in 2011. Litecoin was created by Charles Lee, who was involved in the creation of Coinbase, a leading cryptocurrency exchange. Litecoin is based on the same code as Bitcoin, but with some changes, such as increased transaction speed.
In 2015, Ethereum entered the market with its own features, including the ability to process small code fragments (smart contracts) and a virtual peer-to-peer network.
The fact that with the help of Coinbase it was possible to exchange , and , and also allowed these cryptocurrencies to become the most recognizable and well capitalized. The top ten cryptocurrencies also included , Cardano, NEM, Stellar, IOTA and Tron.
As of January 23, 2018, the capitalization of the TOP 6 cryptocurrencies is approximately $400 billion.
Litecoin 101
Litecoin is closely related to Bitcoin as they are built on the same base code, but with some differences. The main difference is that Litecoin is mined using the Scrypt algorithm, which is embedded in mathematical calculations. They are simpler than those used in the SHA-256 algorithm for Bitcoin mining. As a result, unlike Bitcoin, you can start mining Litecoin using a laptop or PC, especially if it comes with a powerful graphics card. Bitcoin mining requires much more powerful resources.
And because Scrypt is less mathematically complex than SHA-256, mining Litecoin is much faster than Bitcoin. A Litecoin block only takes 2.5 minutes to hash, compared to the 10 minutes it takes to hash a Bitcoin block. That is, Litecoin transactions are processed and confirmed faster.
Ethereum
Like Litecoin, Ethereum is based on the same blockchain concept as Bitcoin. But Ethereum still has differences. Funded since 2014 through an initial coin offering, Ethereum has had the opportunity to take off quickly. Another success factor was the launch.
Investors who "consume" computing power pay for it using tokens (ether). Those who contribute processing power can earn it. In this case, buyers and sellers can simply trade ether.
Bitcoin mining can be compared to thousands of chefs frantically competing to create a new, extremely complex dish, with only the first one to create the perfect version of the dish winning. In the Ethereum kitchen, miners act as restaurant landlords, so Ether chefs can create new types of cuisine.
In fact, a group of companies created a non-profit organization dedicated to legitimizing Ethereum in order to further promote it as an open source platform, as well as develop and support those applications that run on it. Among them, far from being startups, we are talking about major technology players such as Intel, Microsoft and financial giants (JP Morgan and Credit Suisse).
Which cryptocurrency is the most valuable?
Bitcoin remains the most significant figure in the cryptocurrency market. After the boom in November 2017, its rate reached $20 thousand, but, a few weeks later, dropped to $15 thousand and then completely impoverished to $11 thousand (after the authorities South Korea announced a ban on cryptocurrency trading in the country). Litecoin, sometimes referred to as “silver,” has followed Bitcoin’s trend and is currently at $180. Despite the fact that all three cryptocurrencies have been climbing upward over the past year, Ethereum has charted its own path. Since June 2017, the ether rate has continued to rise and today stands at $1000.
Where to invest
If everything were so simple, the answer to this question would not require writing an entire article. So far, no one knows whether the cryptocurrency rate will grow even in the short term. None of them are regulated yet, so the risk is very high.
Bitcoin is the choice of the majority. If you are looking for a cryptocurrency with a big name and a high market capitalization, then Bitcoin is for you. But on the other hand, given the colossal growth of Bitcoin over last year(almost 1000%), now investors do not have to count on a high level of income.
Litecoin is a choice that offers undeniable advantages, and above all, faster transactions. In a word, Litecoin, like Bitcoin, is a promising investment option.
In Ethereum, you can create a decentralized autonomous organization based on a contract, which opens up unlimited possibilities. Moreover, tokens in Ethereum are not equivalent to shares; they provide voting rights. Like Bitcoin, Ethereum has spawned hundreds of other blockchain-based coins. Over the past year, the cryptocurrency has risen in price by 5000%.
Before investing in any cryptocurrency, do your own market research without relying solely on the opinions of experts or seasoned traders. After all, the cryptocurrency market is always accompanied by risk.
It is believed that Bitcoin's main competitor is ether, the second cryptocurrency by capitalization. We tell you why this is not so.
Over this year, the total capitalization of the cryptocurrency market has soared from $17.7 billion to more than $300 billion (data as of November 30). In less than 11 months, the value of all virtual assets increased by more than 1620%. For comparison, the American stock market, including dividends, brought investors an average of 7% per year. In other words, stocks have underperformed crypto assets on all fronts and are left far behind.
The undisputed leader among cryptocurrencies remains Bitcoin. In January, its cost did not exceed $970, now it has exceeded $10,000. With a current capitalization of $174 billion, Bitcoin is ahead of General Electric (NYSE:), one of the largest American companies and a member of the Dow Jones Industrial Average.
Bitcoin's main competitor is not ether at all.
Bitcoin is not alone in its quest for heights. The website CoinMarketCap.com lists 1,327 different cryptocurrencies. Many of them operate on their own blockchains.
Blockchain is a digital, decentralized database of all transactions. It processes and records them without the intervention of intermediaries such as banks or credit unions. Low barriers to entry allow anyone with sufficient knowledge, time and funds to create their own blockchain - competition between virtual currencies is extremely high.
Typically, Ether (ETH/USD) is considered the main competitor of Bitcoin. It has the second largest capitalization and better growth rates in 2017 than Bitcoin. In addition, the Ethereum blockchain is being tested in 200 different projects within the Enterprise Ethereum Alliance.
But the two cryptocurrency giants appear to have completely different missions. Ethereum developers intend to promote their blockchain for companies, somewhat ignoring its functions as a means of payment.
Meanwhile, Bitcoin's developers have focused solely on its purpose as a means of payment and have only recently begun to attract businesses to their blockchain. Although both currencies compete to some extent, Bitcoin and Ethereum do not pose a direct threat to each other.
Meet Bitcoin's Main Rival
Instead, Bitcoin's main rival is Litecoin (LTC/USD). Currently, its capitalization is $4.8 billion and is second only to Bitcoin Gold, Ripple, Bitcoin Cash, Ethereum, Dash and Bitcoin.
In many ways, Bitcoin and Litecoin are very similar. Both have a limited number of coins, although Litecoin's block calculation time is slightly shorter. As a result, payments on the Litecoin network are faster, but the rewards for miners are lower. Additionally, both currencies are much older than most of their peers. Bitcoin appeared in 2009, Litecoin was created in 2011. In other words, these are already mature currencies (so to speak).
But what really binds them is the desire to become a generally accepted means of payment. Five major companies have accepted Bitcoin payments since 2014, and many smaller merchants have since joined.
In this sense, Litecoin is not so successful, but this is more due to the fact that its creator, Charles Lee, did not take an active part in the development of his brainchild for several years, and only recently returned to the development ranks. Online store Overstock.com has become the first major retailer to accept litecoins as payment. Over time, others joined in.
Litecoin definitely has potential. Recently, the long-awaited SegWit update was carried out, which was critical to increasing bandwidth blockchain, reducing settlement times and reducing transaction processing costs. This should attract businesses and possibly investors.
However, Charlie Lee himself does not consider Litecoin to be Bitcoin’s main competitor. He is confident that both cryptocurrencies can successfully coexist and work to benefit each other (although this remains to be seen).
Risk for all virtual currencies (including Bitcoin and Litecoin)
To some extent, all cryptocurrencies, including Bitcoin and Litecoin, share one significant risk - low barriers to entry.
There is no dispute that blockchain will radically change the payment process for a number of industries. The question is, when will this happen and what blockchains will be used for this?
Investors are known for overestimating new ideas. Almost every emergence of a revolutionary technology, such as business-to-business via the Internet, genetic mapping, 3D printing, has been accompanied by bubbles. That's not to say that companies in these industries haven't done well over the long term, but they've done so much more slowly than investors expected. The same thing could happen with blockchain.
In addition, there is a real danger that companies will choose blockchains other than Bitcoin, Litecoin or Ether. In the world of cryptocurrencies, competition is incredibly high, and preferences change instantly.
Can Litecoin challenge Bitcoin's supremacy? Time will show.
Prepared by Taya Aryanova