If you make a Litecoin vs Bitcoin comparison, you’ll notice that these two coins have a lot in common. They both use the proof-of-work consensus and have a limited total supply. Although BTC and LTC complement each other, they differ in many ways. Is Litecoin better than Bitcoin? In a nutshell, Litecoin is better in terms of transaction speed but not in terms of value.
That said, take a look at our Bitcoin vs Litecoin guide to find out how the two compare.
Litecoin vs Bitcoin — Main Differences
There are several differences between LTC and BTC. First, they use different hashing algorithms. LTC uses Scrypt, while BTC uses the SHA-256 algorithm. Scrypt is computationally and memory-intensive, while SHA-256 is computationally intensive.
Secondly, LTC can process more transactions per second — 56 vs. 7. How long do Litecoin transactions take? About 2.5 minutes, while BTC transactions take about 10 minutes.
Finally, LTC has a larger token supply — 84 million vs 21 million, and a larger number of coins in circulation — 74.84 million. How many bitcoins are left in circulation? About 19.70 million.
What Is Litecoin?
Litecoin is one of the first altcoins. This P2P coin was created as BTC’s hard fork in 2011. Its main goal is to address problems related to centralization and to make the mining process more complex. That said, LTC operates on an open-source, decentralized network. It uses the PoW consensus mechanism to verify its transactions. This means that its network, like Bitcoin’s, uses nodes.
LTC transactions are arranged into blocks that are added through the mining process. The first miner who adds a new block will receive a reward in the form of a newly minted token.
Litecoin is mostly used for micropayments and cross-border transactions. However, it can also be used within the crypto gaming and the DeFi sector.
What Is Bitcoin?
Bitcoin was the first cryptocurrency to launch in 2009. Its main goal is to act as a digital currency that won’t be controlled by an entity or a group. The first BTC block, Block 0, was minted on January 3, 2009. Bitcoin uses the PoW consensus mechanism, which enables miners to earn rewards for adding new blocks to the chain. BTC can also be divided into smaller units called satoshis.
This coin runs on a public chain, which means that anyone can access its network. It uses the SHA-256 hashing algorithm to encrypt its stored data and cryptography to create BTC addresses. However, this cryptocurrency is criticized for its high energy consumption.
Bitcoin vs Litecoin Halving Stats
Take a look at our table to find out how Litecoin halving differs from Bitcoin halving:
Event Bitcoin Halving Launch 2140 2142
Date
The most recent halving event
Initial block reward
Current block reward
Final halving date
January 3, 2009
April 19, 2024
50 BTC/block
3.125 BTC/block
Litecoin Halving Launch
October 7, 2011
August 2, 2023
50 LTC/block
6.25 LTC/block
Litecoin vs Bitcoin — Market Cap, Transaction Speed, and Distribution
Here’s how these two coins compare in terms of their market caps, transaction speed, and token distribution:
Market Capitalization
Bitcoin’s current market cap amounts to over $1.1 trillion, while its price stands at $57,495. Bitcoin reached the $1 trillion mark for the first time in December 2021. However, when BTC reached its ATH of $73,750 in March 2024, its market cap jumped to $1.4 trillion.
Litecoin is currently 20th on the list of cryptocurrencies with the largest market cap. Its current price is $58.44, while its market cap is around $4.3 billion. Litecoin reached its ATH in May 2021, when it traded at $410.26. LTC recorded the highest-ever market cap in early 2020 when it hit the $10 billion mark.
Transaction Speed
Is Litecoin faster than bitcoin? Yes. LTC can process 56 transactions per second, while BTC can process only seven transactions per second. This means that Litecoin will verify new blocks within 2.5 minutes, while Bitcoin will need about 10 minutes to do the same.
If you make a Bitcoin vs Ethereum vs Litecoin comparison, you’ll notice that BTC is the slowest blockchain, as ETH transactions usually range between 1 and 5 minutes.
The same applies to transaction fees. For example, the average fee for LTC transactions is about $0.04, while for BTC, this figure amounts to about $6.
Distribution
A significant Litecoin vs Bitcoin difference can be seen in their total token supply. On that note, LTC has a total supply of 84 million, while BTC has a maximum supply of 21 million. This means that LTC has more liquidity than BTC. However, it also means that BTC is a more valuable cryptocurrency due to its scarcity.
Both coins have halving events every four years, during which their mining rewards are split in half. The goal of these events is to slow down the process of minting new coins. BTC’s halving started on January 3, 2009, while LTC’s started a little later, on October 7, 2011.
Conclusion
Now that you know the main Litecoin vs Bitcoin differences, invest in the coin that suits you better. With that in mind, LTC is suitable for microtransactions. It also processes on-chain transactions much faster than BTC. On the other hand, BTC is more valuable, which makes it an ideal long-term investment.
When it comes to the mining process, Litecoin uses a less complex algorithm that is computational and memory-intensive. Bitcoin uses a complex mining algorithm that is computationally intensive. This means that miners will have to use expensive ASIC machines to mine BTC.