Bitcoin vs Ethereum vs Litecoin
In this article, we will try to summarise all the points of Bitcoin vs Ethereum vs Litecoin. Bitcoin, Ethererum, and Litecoin are some of the most popular cryptocurrencies present today.
In 2008, an anonymous cryptographer released the blueprint for a digital currency known as Bitcoin. It introduced a decentralized technology known as blockchain. With its introduction came many coins, tokens, and altcoins which revolutionized the world of cryptocurrency.
Factors of Comparison
There are several factors which help people understanding the potential of various cryptocurrencies. With the help of these factors, we have compared below
Bitcoin vs Ethereum vs Litecoin.
History and development
Bitcoin first originated in 2008 when an anonymous programmer released a paper in a cryptography mailing list. This paper detailed the workings of a new virtual currency named Bitcoin. It made the use of blockchain technology.
Litecoin is a peer-based cryptocurrency that was created to address the issues associated with the Bitcoin blockchain. It proposed in 2011 and reached a market cap of $1 billion in 2013. Ethereum was proposed in 2013 by Vitalik Buterin, a Canadian cryptographer. However, it was fully released in 2015. It is a peer-to-peer based platform on which decentralized applications can be built.
Bitcoin had a price growth of about 1,000% while the Ethereum grew by about 10,000% in the year 2017. As for Bitcoin vs Litecoin, the same trend appears where the smaller cryptocurrency had a better growth rate than Bitcoin.
Whereas, Ethereum price is currently trading at $103 which is nowhere near to that of Bitcoin($3,800). Litecoin is having the lowest price as compared to Bitcoin and Ethereum and is presently trading at $29.
In terms of the Market cap, Bitcoin with a market cap of $67 billion is still the topmost cryptocurrency followed by Ethereum with a market cap of approximately $15 billion. Litecoin exists at the eighth place with a market cap of $1.7 billion.
All the three cryptocurrencies use similar wallets. Mobile, desktop and hardware wallets are acceptable
on their platforms. Hardware wallets being the safest option as they are offline and can’t be hacked.
Bitcoin mining uses the SHA-256 hashing method to add new blocks where miners solve a challenging puzzle. They show a solution known as the proof-of-work. Litecoin mining also works on the proof-of-work protocol but it makes the use of Script in place of SHA-256 which mitigates the problems associated with mining centralization and energy use.
On the other hand, Ethereum involves the use of the proof-of-stake method where blocks are minted, not mined. In this method, a node puts up an amount of its personal Ether as a stake and the node with the highest stake gets the chance to validate the next block. Validators receive a reward proportional to their bet.
You can process 3 transactions per second with Bitcoin and the number can go as high as 7. On the other hand, with the Ethereum one can make 15-20 transactions per second. With Litecoin you can handle about 26 transactions per second.
Due to the fast block confirmation time in Litecoin and Ethereum as compared with Bitcoin. As a result, more miners can mine blocks and receive awards. This leads to a better distribution of rewards to miners and validators.
Initially, cryptocurrencies were used by software developers only. The reason for that was they only knew how these worked. However, as their popularity and user-base increased, a lot of businesses have begun accepting the cryptocurrency as a medium of exchange.
Bitcoin is the most widely accepted cryptocurrency. It is accepted by many popular restaurants, cafes,
publications, dating sites, payment services, gaming services, wholesale and retail outlets. It has also
found its place in the hospitality and tourism industry. Now you can also make donations using bitcoin.
Some of the reputed businesses which accept Bitcoin are:
- KFC Canada
- MIT Coop Store
Ethereum and Litecoins are accepted only by some small and new businesses. It requires more time to achieve higher acceptance of these currencies. Some businesses accepting Ethereum are:
‘Businesses accepting Litecoins:
- Benz and Beemer
Cryptocurrency is comparatively new and is still being studied. Technologies are improving to counter the limitations. Market experiments are still occurring, and businesses continue to find new ways to accept cryptocurrency.
To sum up, you have understood all the pros and cons of Bitcoin vs Ethereum vs Litecoin. No matter which cryptocurrency you buy they certainly give good returns in the long-run. There are also various exchanges where you can exchange one cryptocurrency for another one. Therefore. you can invest in any cryptocurrency with proper guidance and support.