Bitcoin is considered the most powerful form of cryptocurrency for many reasons. It was, of course, the first form of cryptocurrency to hit the market back in 2009 and it also achieved the previously thought impossible by being worth more than $19,000 in December 2017.
However, Bitcoin was just the beginning. Only two years later, an altcoin called Litecoin hit the market, making it one of the oldest altcoins on the market. However, it’s a valuable coin all on its own. Because these two coins are making it big for different reasons, it can be hard for some investors to discern which is the better investment option. Do you choose the one that’s seen significant gains but is on a downward trend or the one that’s yet to shine through?
To help you decide, we’ve outlined why each of these coins is worthy of your investment, with advantages and disadvantages as well.
Litecoin vs. Bitcoin as an Investment
If your primary goal is to make money, then it’s worthwhile to understand how both Litecoin and Bitcoin will fare as an investment. When you’re investing a significant amount of money you, of course, want to know that you’ve made the right decision. The initial aim of cryptocurrency wasn’t to be a lucrative investment, but it has happened to be a happy side effect. But, which will be the better investment for you?
For many years, Bitcoin’s price remained dormant. However, by January 2017, it had grown from being worth a meager $1,000, to almost hitting $20,000 by December of the same year. Now, however, it’s worth a little over $8,500 and has been stagnating around that mark for several weeks.
Litecoin, on the other hand, was worth $4 at the same time that Bitcoin was worth $1,000. Looking at that figure alone, it would be fair to assume investing in Bitcoin is the sounder decision. However, in just 12 months it became worth close to $400. It’s now worth a little under $140.
If you look back through the price history of both Litecoin and Bitcoin, you will see this dramatic fluctuation is not new news. Since their inception, they have been on an upward and downward trend which makes knowing when to hold ‘em or fold ‘em that much more challenging.
Bitcoin has a far better store of value, but Litecoin is becoming more and more mainstream which can only but increase its demand and therefore, its value.
Litecoin vs. Bitcoin for Transactions
As far as transaction speed goes, it’s team Litecoin all the way. When you’re the first cryptocurrency on the market, there is every possibility that your network and blockchain is not going to run as efficiently as those that hit the market after you. There is more opportunity to build on your success, take note of your failures, and ultimately design a better system that’s less flawed and more valuable in the long-term. While Bitcoin, as a coin, might hold more value, Litecoin, as a transaction system, is far more popular.
To confirm transactions on Bitcoin’s block takes 10 minutes. Litecoin, on the other hand, takes just two-and-a-half minutes – a fraction of the time. The faster the transaction speed, the lower the fee, and that’s something both Litecoin users and investors appreciate.
Even though Bitcoin has now managed to get its transaction time down to a little over nine minutes, it’s still not good enough. Transaction fees have been known to get as high as $50, and even though they sit at around $9 today, it’s nothing on the 30 cents that Litecoin charges for the same, but quicker, process.
However, some people are not convinced that Litecoin is all it’s cracked up to be. In fact, some people believe that a faster transaction time equates to less security. While there have been no problems thus far, that’s not to say it may not happen in the future. What’s more, Bitcoin offers far more avenues for purchasing goods than Litecoin, but that might change in the future.
In the Litecoin vs. Bitcoin battle, it’s clear to see both coins have their advantages and disadvantages. Bitcoin is a far more valuable coin, but its transaction speed lets it down. Litecoin, on the other hand, offers lightning fast transaction speeds and low fees, but its value is most certainly not as lucrative. As an investor, you have to decide which is most important to you before hitting that ‘buy now’ button.