Among Bitcoin, Litecoin, and Ethereum, Bitcoin was the first. Since its release in 2009, it has become the most established and prized cryptocurrency. But it’s not the only game in town.
Litecoin came in a close second in 2011. Founded by Charles Lee, an engineer who later helped create Coinbase, the leading cryptocurrency exchange, Litecoin is based on the same code as Bitcoin, but with many tweaks designed to address its predecessor’s two limitations on transaction speed and access to the mining process.
And in 2015, Ether debuted, incorporating Bitcoin’s introductory blockchain premise and Litecoin’s quest for faster transaction speeds, but adding many of its own twists – including the ability to handle small blocks of code, called “smart contracts” – and on its virtual peer-to-peer network, rather than on dedicated servers or mining trucks.
Which cryptocurrency is the most prized?
Bitcoin remains the most visible and constantly traded cryptocurrency. After remarkable inflation in November 2017, it peaked at a fearsome dollar in late December 2017 and dropped another 50% in value over the course of many weeks after South Korean controllers closely honed in on a ban on trading. Litecoin’s price is sometimes referred to as the “silver” of Bitcoin’s “gold,” following the same trend as Bitcoin’s valuation. While all three currencies are increasing in value, Ethereum has evolved in its own unique way, soaring in June 2017 and breaking through the dollar in early January 2018.
Which one is the best for you?
If only it were that simple. No one knows if any cryptocurrency will add value or actually exist in a year’s time (although we think the cryptocurrencies defined in this composition will check both boxes). They are all unregulated (yet) and only individuals with the highest threat capacity should enter the cryptocurrency market. Noting this, there are significant differences between the three that can be used to form a reasonable basis for investing in or mining one over the other.
Bitcoin is the dominant choice. However, with unparalleled popularity and the highest market cap, it is a no-brainer if you are looking for a cryptocurrency with the most important transportation advantages. In terms of strikes, it is now nearly impossible to mine profitably, incredibly energy-intensive, and, having risen further than a percent in the past year, has probably consumed most of its growth potential.
Litecoin offers its own advantages. Its creator is a well-known and living reality in the cryptocurrency community. It has faster transaction capabilities – an implied advantage in itself – which also provides a different set of use cases than Bitcoin. And it still offers lucrative mining potential, unlike Bitcoin.
Ether has the backing of some well-known names – which could be an advantage or a disadvantage depending on how you view the modern financial industrial complex. It has the potential to generate natural value like Litecoin or Bitcoin but also has more obvious commercial applications. And, like Bitcoin, it has spawned hundreds of other coins that were built by applying its underlying blockchain technology.
Regardless of which one sounds most attractive to you, do your research before investing in any of these cryptocurrencies.
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