Surely by now you have heard of Bitcoin, Bitcash, and Ethereum. There are many other players in the digital currency space. One in particular is Litecoin. If Bitcoin is gold than Litecoin was meant to be it’s silver. We are going to take a look at Bitcoin vs Litecoin to see the differences and similarities between the two.
Also, we will take a quick overview of the Cryptocurrency world to try and decipher what how it came to be, how they are used, and if there are opportunities to generate passive income by investing in this digital money.
Is the leader when it comes to digital currency by name and market capitalization as of December 2017 it was over $235 billion.
The price of one Bitcoin today can cost you anywhere from $12,000 to 18,000 dollars for one Bitcoin. That is a mind boggling number when you consider one Bitcoin was less than $1,000 to start the year.
What is Litecoin:
Litecoin is a digital currency that involves instant peer-to-peer payments and exchanges of transactions where value of coins are not managed or stored by a central authority, like U.S. dollars at the central bank. The transactions are kept on open ledger that can be viewed by all participants in the community. The appeal of digital currency transactions is the perceived anonymity due all the super computers involved during a transaction and the reduction of cost.
Bitcoin vs. Litecoin
Inspired by Bitcoin it was forked (split) from Bitcoin back in 2011 and became an alternative digital currency to Bitcoin. A few alternative solutions Litecoin offers over Bitcoin is its ability to process transaction around 2.5 minutes. While it takes Bitcoin transaction about 10 minutes to process that makes Litecoin 4X faster!
Bitcoin creates value through scarcity there is no tangible asset that backup these currencies,so value is created by demand. Like gold there is a finite amount of available Bitcoins, 21 million Bitcoins to be exact. Litecoin again has 4X times the amount of availability to the public at 84 million Litecoin.
Also interesting and different are the creators of the two digital currencies. Bitcoin creator(s) still remain anonymous and go by the pseudonym Satoshi Nakamoto. There have been many people believed to be the creator of Bitcoin and others who falsely claimed to be the creator. This has all helped with the allure of the digital currency.
Litecoin on the other hand was created by Charlie Lee a former GOOGLE engineer back in 2011. He was involved in Bitcoin and was not initially trying to create an alternative coin:
“It was an excuse to kind of learn the Bitcoin code, I decided that I can actually create an altcoin that’s better than what’s out there. and lastly it was fun to play around with what’s out there.”
Are the hottest things in town. There are so many different altcoins available providing unique services and payment methods.
There are altcoins like Ethereum that use blockchain technology to process transactions emphasized by contracts. Gaming altcoins, like WAX allowing a place for gamers to exchange “skins” (accessories). Even banks are finding ways to partner up with altcoin companies like Ripple to offer different payment processing and services.
Major companies and countries are beginning to accept digital currencies as regular form of payments. Digital currencies are becoming a global form of transactions. Where many believe one day may overtake the current system.
As you can start to see there is a huge cryptocurrency world starting to take shape that will provide all types of opportunities as consumers and investors.
How To Get Digital Currency
Ok. We have giving you some information on the history and differences of some of the popular digital currencies that are out there, Bitcoin vs. Litecoin. Also, some of the different uses and what the future may hold for this new technology.
I am sure you have one question on your mind… How do you buy digital currency?
Like the currencies themselves there are several places and sources where you can buy and exchange them.
Coinbase – One of the leading and more reputable sources to buying digital currency. At Coinbase you can buy four of the leading currencies out there: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. You can use your personal bank account to make purchases or even Visa credit cards. Once you make your purchase, you can exchange between digital currencies or send coins to other exchanges that hold other forms of altcoins.
Bitsane – Is mainly exchange where you have access to the four aforementioned currencies plus one other. If you interested in Ripple currency Bitsane is your site.
Binance – Again, primarily an exchange for other altcoins. It is the biggest of the three exchanges on this list with several different altcoins to choose from including their on Binance currency, BNB.
As we mentioned earlier there are several digital currencies and sites that seem to be legit. Please!!! Do your research as these are very speculative and risky products/investments. There have been many stories of coins being hacked and people losing several thousands of dollars investing in bogus currencies.
Still interested in digital currencies? Check out these resources below that can get you started now: