Bitcoin Cash vs Litecoin: Complete Comparison

When investigating the wоrld оf cryptоcurrencies, we frequently cоme acrоss many cоin kinds that appear tо be rather similar at first glance. That’s why there is a questiоn: what distinguishes certain cоins from each оther? The same happens in the case оf Bitcоin Cash and Litecоin. In this article, we perfоrm a deep research оn the оrigin, use-cases and technical differences of these two popular cryptocoins. Let’s see!

What Is Bitcoin Cash (BCH)?

Bitcoin Cash is a cryptocurrency that appeared as a result of the hard fork (technical separation) of the Bitcoin network in August 2017. The reason for its occurrence is a discussion within the Bitcoin community about the problems of network scalability, acceleration and reduction of transaction costs. So, the main purpose of BCH becomes a speeding up transaction processings and fees reduction.

The volume of a single block in the blockchain is the primary distinction from the first iteration of Bitcoin. Accordingly, if it is one megabyte in Bitcoin, it was initially raised to eight megabytes and subsequently to 32 megabytes in Bitcoin Cash. By increasing the number of transactions processed every block, it gives cryptocurrency the chance to improve network bandwidth.

What Is Litecoin (LTC)?

Litecoin (LTC) is a cryptocurrency created in 2011 by Charlie Lee as an alternative to Bitcoin. It differs from the very first cryptocurrency in that it has a faster transaction confirmation time, which allows it to be used for small daily transactions.

Litecoin uses a hashing algorithm, Scrypt, unlike Bitcoin, which uses SHA-256. This makes the mining process is less resource-intensive and more accessible to ordinary users. The total supply of Litecoins is limited to 84 million coins.

Bitcoin Cash Vs. Litecoin: Key Differences

The main differences between Bitcoin Cash (BCH) and Litecoin (LTC) include their origin and purpose, block size and speed of transactions, mining algorithms, total supply, market position, acceptance and fees. Let’s take a closer look at each point.

Origin and Purpose

Bitcoin Cash split off as a hard-fork of Bitcoin in 2017. The goal was to handle more transactions and lower the cost, making it better for regular purchases. In turn, Litecoin was created in 2011 as Bitcoin's “little brother”. It's a faster version of Bitcoin with quicker transaction times and a unique way of mining that's easier to join for someone who does not have expensive highly professional equipment.

Block Size and Transaction Speed

Bitcoin Cash started by increasing Bitcoin's block size from 1 MB to 8 MB and then to 32 MB which means it can handle more transactions in each block. It takes about 10 minutes to create a new block, just like Bitcoin. Surprisingly, Litecoin maintains a block size of 1MB, but creates new blocks every 2.5 minutes, which is faster than Bitcoin and BCH, allowing for quicker transaction confirmation.

Mining Algorithms

Bitcoin Cash uses the SHA-256 algorithm, just like the original Bitcoin, and requires the same equipment for mining. In turn, Litecoin uses the Scrypt method which requires more memory to confirm transactions in the blockchain. It was developed this way, so LTC mining depends less on the special machines (ASICs) used for Bitcoin mining.

Total Supply

Bitcoin Cash has a total supply of 21 million coins, the same as Bitcoin. So, Litecoin has a bigger total of 84 million coins, which is four times more than both Bitcoin and Bitcoin Cash.

Market Position and Adoption

Bitcoin Cash aims to function as a digital cash system that charges fewer fees. However, it competes with Bitcoin and has a smaller user base. On the other hand, Litecoin is frequently used to try out new features that might be added to Bitcoin. It is widely accepted and continues to be a leading cryptocurrency, often serving as a supportive alternative to Bitcoin.

Fees

Bitcoin Cash charges less than $0.01 to $0.10 USD as a transaction fee due to its larger block size (32 MB) which means it can fit more transactions in each block reducing crowding. Litecoin charges a bit more - about $0.10 to $0.50 USD - depending on how busy the network is.

These comparative points show the unique objectives and by which each digital currency serves various requirements in the larger world of cryptocurrencies.

Bitcoin Cash Vs. Litecoin: Which Is Better To Buy?

The choice of buying these two coins must be guided by your personal needs. Litecoin beats Bitcoin cash in risk-safety, stability and trust from the community, while Bitcoin Cash almost guarantees greater returns.

Litecoin usually is referred to as a “digital silver” compared to Bitcoin's “digital gold” and has been around longer making LTC a more stable and trustworthy currency. Bitcoin Cash, in its turn, could pay back greater returns, however it also carries more risks as disputes and market difficulties always follow it. In this light Litecoin seems to be a safer option for investing into because it's widely accepted, has consistent performance and less risk.

In conclusion, LTC is a great choice for ones who seek stability and a big, trustworthy community. But if you are ready to take bigger chances for potentially higher results, BCH is the right option. Diversifying your investments between the two could also be a strategic option.

Bitcoin Cash Vs. Litecoin: Use Cases

Here are the key use cases for both Bitcoin Cash (BCH) and Litecoin (LTC):

Bitcoin Cash (BCH) Use Cases:

1. Making Payments: BCH is made to be used as online cash, letting people make quick and cheap payments for regular purchases. It's especially good for small payments, like buying a coffee or paying for minor services because it doesn't cost much to use.

2. Sending Money Abroad: Sending Bitcoin Cash to other countries doesn’t cost much and happens rather quickly which means that people can avoid high fees that usually come with transacting funds abroad.

3. Business Acceptance: Some businesses take BCH because it doesn't charge much and confirms payments fast, which is appealing for both online shopping and in-store purchases.

Litecoin (LTC) Use Cases:

1. Online Transactions: Litecoin also fits perfectly for online payments due to the speed of transactions (every 2.5 minutes) and lower fees. It also makes LTC very suitable for everyday use and regular purchases.

2. Saving Money: Litecoin is often considered a good way to store value. Investors often give priority to Litecoin as a well-established and more or less stable cryptocurrency.

3. Direct Trading Between Currencies: Litecoin is useful in cases of decentralized trading because it allows trading for other cryptocurrencies directly, not needing a middleman - so called atomic swaps.

Bitcoin Cash Vs. Litecoin: A Head-To-Head Comparison

A side-by-side comparison table highlighting key elements such as market data, technology, total supply, and other relevant information devoted to Litecoin and Bitcoin Cash.

Currency	Characteristics
Bitcoin Cash (BCH)	Characteristics - Created on August 1, 2017 - Created by the Group of developers as a Bitcoin hard-fork - Uses SHA-256 algorithm - Block time of 10 minutes - Total supply of 21 million blocks - Block size of 32 MB - Transaction speed faster than Bitcoin due to larger blocks - Generally low transaction fees - Market capitalization varies, usually lower than Litecoin - Scalability improved over Bitcoin, but concerns remain - Smaller community than Bitcoin and Litecoin - Increased block size from 1 MB to 8 MB, then to 32 MB - Continuous debates over scaling and decentralization - Widely accepted, but not as much as Bitcoin - Widely supported across major wallets - Subject to similar regulatory pressures as other cryptocurrencies - High price volatility, similar to other altcoins - Available on most major exchanges
Litecoin (LTC)	Characteristics - Created on October 7, 2011 - Created by Charlie Lee (a former Google engineer) - Uses Scrypt Algotithm - Block Time of 2.5 minutes - Total supply of 84 million - Block Size of 1 MB - Transaction speed faster than Bitcoin due to shorter block times - Generally low transaction fees - Market sapitalization varies, generally higher than Bitcoin Cash - Relatively scalable due to smaller block times - Strong community, known as the "silver to Bitcoin's gold" - Implementation of SegWit - Development of the Lightning Network - MimbleWimble for privacy (under development) - Widely accepted and used, with good merchant support - Widely supported across major wallets - In regulation is similar to Bitcoin, with better acceptance in some regulatory environments - High price volatility, but generally more stable than smaller altcoins - Available on most major exchanges

When choosing between these two top altcoins, Litecoin and Bitcoin Cash, keep in mind that LTC has cheaper fees and larger blocks than BCH, making it a better option for frequent users. As Litecoin is still evolving, it has a thriving community, processes blocks more quickly and could eventually add more features and stability. Consider what matters most to you: network security, cost, or speed. Additionally, consider how each choice fits into your long-term objectives and investing strategy.

What is your opinion on BCH and LTC? Which of these cryptocurrencies do you prefer? Let us know in the comments below!