How Litecoin and Ethereum are Fuelling Different Intentions

0
100
Litecoin market cap

The Cryptocurrency landscape is influenced by only one thing and it is nothing but uncertainty. This fact has been confirmed on several occasions and the last year was particularly plagued by a number of movers and shakers that established the extremely volatile nature of Cryptocurrencies and the process of mining such as Ethereum and Bitcoin mining.

But then every investment option is influenced by uncertainty. The major factor in favor of crypto mining or investment happens to be the amazing rise of Bitcoin or Litecoin market cap.

This brings us to the million dollar (or should it be million Bitcoin) question as to where should the Cryptocurrency enthusiasts put their investments. The ecosystem of Cryptocurrencies provides a fascinating array of choices that can also be intimidating. Of course, every investor is driven by personal favorites.

After Bitcoin, the next best options according to many experts are Litecoin and Ethereum. If you consider these two promising Cryptocurrencies, you will find that Litecoin is almost as old as Bitcoin but in spite of being a late entrant Ethereum it has rapidly established and improved itself in terms of value.

These altcoins have received immense attention of investors and we will look at the key differentiating factors to understand their true investment potential.

Value for investment

Ethereum or Litecoin market cap can be one of the few indicators to compare these altcoins. Thanks to its early entry, Litecoin has been able to establish itself in terms of value and trust. The altcoin has also significantly gained recognition for its brand name and the proof of the same can be a large number of leading exchanges that support Litecoin trading.

Ethereum made its mark almost four years after Litecoin and has been able to gain significant traction in spite of its late entry. However, the fact that Ethereum is becoming scarcer puts Litecoin ahead because of its stronger future value.

Online transactions

Ability to support online transactions is one of the foremost objectives of altcoins. In this regard, Litecoin has the advantages of early start and it has been regarded as a robust medium of online transactions. This is further supported by rapid growth of exchanges that accept the altcoin as a trading and transacting medium.

Ethereum is backed by an ultrafast block time that currently stands at only fifteen seconds. This means a faster confirmation of your transaction and peace of mind. The benefit of faster transaction is for a price because the Ethereum transaction fees are slightly higher.

Mining algorithms

Litecoin mining and Ethereum mining slightly differ from each other in terms of algorithms although both leverage Proof of Work. In case of Litecoin, miners need greater RAM than compute power for dealing with its scrypt based algorithm. Ethereum relies on its own algorithm which is known as Ethash. The special algorithm was created to mitigate risk of work manipulation by syndicate of miners.

Bottom-line

It is very difficult to arrive at a true comparison of Ethereum and Litecoin because these are designed for different objectives. Litecoin offers an ideal means of online transaction while Ethereum is a right choice for contracts, crowd-sourcing and simplification of management processes.

LEAVE A REPLY

Please enter your comment!
Please enter your name here