Litecoin is now one of the most popular coins on the market. According to some people, it’s closely related to Bitcoin; however, to others it isn’t. But what is the real trend? What’s the relationship between these coins?
Well, let’s find out!
LTC and BTC: General Overview
The first thing to note about Litecoin is that it was made with the source code of Bitcoin. So, in a way, it’s Bitcoin Lite. It was one of the very first Bitcoin spin-offs, as it was released in October 2011. BTC was created about two years prior.
There are two main similarities between LTC and BTC:
- The first similarity is the “proof of work” consensus.
- The next is the storage and transaction basis.
However, there are major differences as well:
- For one, both coins have different market caps. Bitcoin has a much bigger market cap at more than 1.037 trillion dollars, while Litecoin’s market cap rests around 13.447 billion dollars.
- Another difference between both coins is the total supply. Bitcoin has a fixed distribution cost of about 21 million coins, while Litecoin has about 84 million as a fixed supply.
- Litecoin has a block mine time of about 2.5 minutes, which makes it a lot faster than Bitcoin.
- Lastly, the most fundamental difference between both coins is that they employ different cryptographic algorithms. Bitcoin is based on the SHA-256 algorithm, while Litecoin is based on an algorithm known as Scrypt.
Cryptocurrency “Gold” BTC and “Silver” LTC Now: Are Their Prices Connected?
Since Litecoin was released, it has always trailed behind BTC in terms of price, and that’s to be expected since BTC is an older coin with a lot more trust in the market. But why does this relationship in price exist with both coins, and why does LTC follow the falling and rising trends of BTC? What’s the logic behind the LTC to BTC price?
The answer is somewhat obvious:
- Both coins are very similar — so similar that they are built from the same source code.
- Secondly, if a bug manages to crash either of these cryptos, it may negatively affect both of them.
- Thirdly, the price of altcoins on the market is measured with BTC, and lastly, BTC is often bought with altcoins, not fiat currency. So it’s easy to see why both coins usually go through the same market motions — they are simply too related.
If you are interested in purchasing these coins quickly and anonymously, then check out the information below.
Quick Godex Exchange
All you need in order to convert BTC to LTC or vice versa is to go to Godex.io and follow the next steps:
- Choose the digital assets you want to exchange in the appropriate fields.
- Fill in your wallet address.
- Wait for the deposit.
- Finally, the exchange will be completed in a few minutes.
Now it has become clear how BTC is related to LTC and why LTC often follows it. Both coins are cut from the same source code, so it’s sensible that they behave in the same way — or rather, look the same to investors. In any case, if you’d like to convert your cryptocurrencies, you can do it through the Godex converter pretty easily.