Litecoin is very similar to Bitcoin. Just like Bitcoin, it is built upon the same code. Think of it as the operating system update that you receive on your smartphone. Just like an update aims to improve some of the issues with your smartphone, Litecoin aims to fix some of the problems with Bitcoin.
As I explained in the coffee example, Litecoin’s technology can process transactions faster than Bitcoin.
Another key difference is the total number of coins that exist. Similar to how the world’s gold supply is limited, so is the supply of cryptocurrency coins. Only a maximum of 21 million Bitcoins can be created. The maximum number of Litecoins is 85 million.
To make a payment using cryptocurrency, you are required to pay a transaction fee. That fee is much higher when transactions are sent using Bitcoin rather than using Litecoin. This means that it is not only faster to make payments using Litecoin, but it is also much cheaper. This is one of the reasons that many Litecoin price predictions are more likely to be positive.
In the case of our regular currency, federal banks can print new notes to increase the supply of currency. This is not the case with cryptocurrency as there is no government that can “print” more coins.
Did you know that new coins need to be “mined” in order to be used? Again, just like gold!
All you need to know is that mining is the process in which people use computers to discover new Litecoin, Bitcoin and other coins. To mine Bitcoin (or other cryptocurrencies) you need a super specialized and powerful computer, unlike the normal computers you find in retail stores.
However, you could mine Litecoin with a normal computer, just by adding a few graphical processing units (GPU). So, if you decide you want to own Litecoin but don’t want to buy it on an exchange, you might want to think about mining it.
For this very reason, Litecoin is accessible to more people than Bitcoin. Which is why Litecoin is often referred to as the silver of cryptocurrency and Bitcoin is referred to as the gold.
The differences between the technology of the two coins have a major impact on their prices. Now that you know how Litecoin’s technology is different from Bitcoin’s technology, it will be easier for you to understand our Litecoin price prediction
