Litecoin vs. bitcoin vs. Ethereum. Differences
posted in Community by
sict1979
Protocol and mining
While Bitcoin and Litecoin are powered by PoW, Ethereum is moving to Proof of Stake (PoS) in the Ethereum 2.0 update to address scalability and security issues.
Given that Bitcoin and Litecoin rely on PoW consensus algorithms, their blocks are verified by miners who receive 12.5 BTC or LTC respectively per block as a reward. The reward amount is then halved according to a predetermined pattern.
Ethereum is switching to PoS, now validators instead of miners will support its blockchain. To become a validator, you need to deposit at least 32 ETH, which is a significant amount for the average person. This is roughly the same as bitcoin, which requires expensive ASIC machines to conduct profitable mining. With Litecoin, miners can use regular GPUs to mine a block. However, large mining companies tend to make much more profit.
Pros of Litecoin trading
Many traders prefer Litecoin because it has been time tested and proven to be reliable. In addition, it is cheaper and often more stable than its counterparts. However, since it is still a cryptocurrency, it can also exhibit extreme volatility compared to traditional assets, making it a huge speculative tool for day and swing traders.
The big advantage of Litecoin is that its total supply is capped at 84 million LTC, which means that the scarcity level will be maintained for a long time to come. This could potentially have a positive impact on the price of LTC, similar to BTC, caused by an increase in demand.
In addition, Litecoin is a faster and cheaper transaction option than Bitcoin.
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1 year, 8 months ago