Bitcoin, being the first cryptocurrency to be introduced, has enjoyed the lion’s share of the hype that has, in return, done a lot of justice to its price. Bitcoin has won the hearts of many cryptocurrency investors and has nothing more to prove its stance again.
However, Litecoin, another promising and undervalued cryptocurrency, has been deprived of the level of hype Bitcoin receives, meanwhile it has a good stand against Bitcoin on paper. This article will walk readers through some of the reasons why Litecoin is better than Bitcoin on paper.
Transaction Speed and Transaction Cost
Assessing the superiority of cryptocurrencies takes into consideration their transaction speed and cost. The truth is that digital assets being defined as currencies are not measured by their investment rate, but the value they serve as a medium of exchange.
On paper, any rational merchant will go for a currency that has a higher transaction speed coupled with less transaction fee. Accessing Bitcoin and Litecoin on this ground gives Litecoin a huge advantage.
Bitcoin transaction confirmation takes an average time of 10 minutes, depending on the traffic in the network. In some instances, it can take about an hour. This makes it challenging to facilitate a transaction that comes with a deadline.
Some users switch the coins from Bitcoin to a faster currency in situations they want faster delivery. Litecoin, on the other hand, has an average transaction confirmation time of 2.5 minutes.
According to Bitcoinfees.info, Bitcoin fee for 10 mins block confirmation is $1.83. Fees for 30 mins block confirmation is over $1.79 and fees for hour block confirmation is $1.28. Litecoin, on the other hand, has a transaction fee of $0.01 for the Litecoin Core 0.17 upgrade.
The completion of the segregation witness blockchain upgrade has reduced its transaction fee drastically and speeds up its transaction, which makes it a better choice than Bitcoin.
Another area Litecoin looks far better than Bitcoin is the Proof of work algorithm. This has got to do with the finding of a solution to a complex mathematical puzzle to validate a coin. Bitcoin needs a high powered computer to validate a coin since it is processor intensive.
Litecoin is memory intensive. This means it uses a less costly intensive Graphics Processing Unit to validate a transaction. Litecoin has been the people choice on this ground.
Looking at these cryptocurrencies on the ground of their technical functionalities, Litecoin seems to have upgraded to a better version and offsets almost all the weaknesses of Bitcoin.