Why Litecoin Is Equally Good Or Better Than Bitcoin
https://seekingalpha.com/article/4086771-litecoin-equally-good-better-bitcoin Why Litecoin Is Equally Good Or Better Than Bitcoin Certified Research Analyst, Growth, long-term horizon, Cryptocurrency Enthusiast (85 followers) Summary Both Bitcoin and Litecoin are deflationary. Litecoin payment confirmations are faster. Litecoin is more adaptive to technical up-scaling. Both coins can compliment each other. Comparing two stocks to find out the relatively better value buy is quite easy for a traditional research analyst who deals with equity market. The number of parameters available for comparison is wide and time tested, starting from a simple quarterly result's net profit to complex ones like debt equity ratio, PE, trailing EPS etc. Stocks are categorized by its market capitalization and industry to make the study more focused. But when comes to crypto world, we don't have any time tested parameters to filer out the naked ones from others which are promising and disruptive in nature. So an investor who decided to invest in crypto currencies have to overcome this black-hole by using some simple traditional techniques which requires normal IQ level only. Let us first discuss about the similarities between these two coins and then step in to future outlook of Litecoin. litecoin 1. Both Bitcoin and Litecoin are deflationary These crux behind the deflationary nature is simple defined by the demand supply logic in basic economics. The supply of both these coins will be tapered in coming years and at the same time demand will be increasing if something catastrophic is not happening in crypto space. Bitcoin will have 21 million coins in its entire life span and Litecoin will have 84 million, which is exactly 4 times that of Bitcoin. Considering the fact that in early days, people gave little importance on secure storage, millions worth coins were lost which cannot be recovered by any chance. This is the reason why both of these coins are considered deflationary in nature. The current supply of Bitcoin is nearly 16.4 million whereas Litecoin has 51.85 million coins in circulation.
"When I released Litecoin there were a lot of other cryptocurrencies that were pre-mined by founders wanted to be super rich. I preannounced Litecoin on Bitcointalk, so people could mine it from the get go. It was more widely distributed from the start than Bitcoin." Charlee Lee, Litecoin founder
Litecoin payment confirmations are faster
The block generation time of Bitcoin is 10 minutes and Litecoin is 2.5 minutes. In simple terms, it means that transactions are confirmed 4 times faster in Litecoin. The downside of smaller block generation time is, it is easy for reversal of transaction compared to a larger block. Since the value of Bitcoin is high, Litecoin's future lies in using it for small transactions as the transaction fees associated is negligible compared to Bitcoin's transactions.
Litecoin has a large economy and our technology works on Litecoin with almost no changes. We like ethereum too, but ethereum is too different from bitcoin for us to easily switch. Litecoin has the best combination of economic size and technical similarity to bitcoin. On Litecoin, transaction fees are only a few cents. This means users can comfortably load only $1 onto our network while still paying negligible fees. This is a radically lower barrier to entry compared to $100 for bitcoin. Litecoin is one hundred times better for our application today than bitcoin. Ryan X. Charles, Yours
Both coins are based on "Proof of Work" concept The coin rewarding functionality of both Bitcoin and Litecoin are based on the concept of proof of work, though their algorithms differ. Bitcoin is using SHA-256 and Litecoin is using scrypt algorithm. SHA-256 is a complex algorithm and data block processing with SHA-256 possess slower—transaction turnaround times with less room for error. Successful mining of coins using SHA-256 requires hash rates at the giga hashes per second range or higher which means miners need high performing ASIC chips. Scrypt is simpler and it is is much easier to run on GPUs, and tends to use up less energy than using SHA-256.
Future Outlook for Litecoin Litecoin is more adaptive to technical up-scaling If we compare the history and road-map of Bitcoin and Litecoin, it is evident that the later has been well ahead in adapting new improvement plans. Segwit is already activated in Litecoin without any political doldrums. The founder Charlee Lee has joined back at Litecoin foundation after his stint in coinbase. The team behind Litecoin is now working on Lightning network and adding smart contracts. Once implemented successfully, these two projects can change the future of Litecoin. Lightning Network I believe Litecoin will be the first crypto to implement lightning network which would increase the scalability of transactions. Ind is one of the implementations which is in the final stages and expected to complete in next 6 months. Once lightning network is implemented, the number of transactions per second can grow to millions. Smart Contracts The future road-map of Litecoin shows its interest in anonymous smart contracts. Smart crypt vault is one of the items on the roadmap Charlie Lee is excited about. The technology combines MAST (Merkelized abstract syntax trees) and covenants – script combinations that restrict how coins are spent. The team is expecting a positive outcome in this month on this as per Charlie's tweet. Conclusion Charlee Lee introduced Litecoin as "silver crypto currency" when Bitcoin took the name of "Crypto gold". If we understand the fundamental logic behind both the coins, we don't need rocket science knowledge or high IQ to understand the fact that Litecoin is heavily undervalued. The ideal price of Litecoin is ultimately pegged with 1/4th of Bitcoin price. This is by the simple calculation of supply of coins, 21 million vs 84 million. According to google keyword search, Litecoin is still not in limelight like Bitcoin or Ethereum. This can change in near future and both the coins can compliment each other on a long run.
"Litecoin versus Bitcoin is like Facebook versus Google Plus," says Lee. "It would be hard for Plus to overtake Facebook. But if something catastrophic happens to Bitcoin, I could see Litecoin positioned to overtake it." Charlee Lee, Litecoin founder
I am not sure how much Bitcoin is overvalued or undervalued. But I am sure that Litecoin is undervalued when compared with Bitcoin. One final question to my readers, If Visa and Mastercard can co-exit and supplement each other, why not Bitcoin and Litecoin??
“Price Is What You Pay, Value Is What You Get”~Warren Buffett
The only factor that differentiate Bitcoin with Litecoin is its popularity. But the catch up rally is awaiting and it is not so far. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article..
Charlie Lee (Litecoin founder) wants to enable Segwit on LTC. We can see how Segwit runs with such drastic economic policy changes. If it proves fine on LTC, perhaps both sides in Bitcoin can come together & adopt it. Much better to test on a $189 Million market cap versus BTC's $15 Billion!
Hear me out. This may very well be the way to break the current gridlock between Segwit adoption and bigger blocks. If Segwit happens to prove to be not so great, then Bitcoin can proceed with other scaling solutions like raising the block size limit. Personally I think enabling Segwit on Litecoin will be a bad decision for many reasons (which have already been covered many times). But I'm willing to be surprised. More likely though, I think it will show everyone actually we do not want SegWit running on Bitcoin. And this would be great for moving forward. https://medium.com/@SatoshiLite/my-vision-for-segwit-and-lightning-networks-on-litecoin-and-bitcoin-cf95a7ab656b#.ahj5uyu49
Litecoin, for example, uses a different proof of work algorithm to bitcoin, called Scrypt. This has been optimized to be friendly to CPUs and GPUs, making them a good option for GPU miners who ... The Bitcoin blockchain in its simplest form is a database or ledger comprised of Bitcoin transaction records. However, because this database is distributed across a peer-to-peer network and is without a central authority, network participants must agree on the validity of transactions before they can be recorded. This agreement, which is known as “consensus,” is achieved through a process ... So, which is more democratic, Litecoin or Bitcoin? Round 5! Litecoin vs Bitcoin: Democracy. The main difference between Litecoin vs Bitcoin is the way mining on each platform works. As I said earlier, mining Bitcoin is more difficult and more expensive than mining Litecoin. So, to make money mining Bitcoin, you need a very powerful computer. Die Kryptowährung Litecoin ist de facto eine Abspaltung vom Bitcoin. Litecoin gibt es seit Oktober 2011, als Erfinder der Kryptowährung gilt der ehemalige Google-Mitarbeiter Charlie Lee. Die ... Bitcoin erklärt. Als „Mutter aller Kryptowährungen“ wurde Bitcoin 2009 mit der Veröffentlichung eines Whitepapers eines bisher nicht identifizierten Autors namens Satoshi Nakamoto der Welt vorgestellt. 2009 – zum Höhepunkt der globalen Finanzkrise – waren Millionen von Menschen zu großen Skeptikern und Kritikern des klassischen Bankensystems geworden.
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