Data shows that the number of Litecoin transactions accounts for just under 75% of the number of Bitcoin transactions. Will LTC soon overtake BTC, as one analyst predicts?

Buy LTC on eToro now

@ MASTERBTCLTC writes:

“Litecoin transactions represent 75% of total Bitcoin transactions.

When will Litecoin transactions overtake Bitcoin transactions?

Sometime in 2021, I predict.

227k BTC vs 168k LTC transactions.“

More importantly: @ MASTERBTCLTC suggests, that this could be the start of an uptrend that will cause LTC to overtake BTC in terms of transaction count at some point this year.

Litecoin vs. Bitcoin Transactions, Source: @ MASTERBTCLTC on Twitter.com

Taking into account other factors – including the environmental argument against proof-of-work tokens: what can we deduce from this trend?

The difference between Litecoin and Bitcoin

Although Litecoin is a Bitcoin fork, it differs in terms of its hashing algorithm, supply, and block transaction times.

Litecoin has a block confirmation time of 2.5 minutes versus 10 minutes on Bitcoin. This focus on speed and low transaction fees make LTC more suitable for microtransactions and point-of-sale payments.

Currently, the average LTC transaction fee is about $0.0104. In comparison, the average BTC transaction fee is $8,131.

However, the fundamental difference between the two lies in the use of Litecoin’s newer Scrypt Proof-of-work (PoW) algorithm over Bitcoin’s SHA-256.

Crypto mining can be done with a CPU, GPU or ASIC miner. ASIC miners can generate more hashes (attempts) per second to find the target data chain and “win”the block. Therefore, ASIC miners have a distinct advantage over other mining methods.

But Scrypt was chosen by the Litecoin developers because it appeals less to ASIC mining. Although Scrypt ASIC miners have now entered the market, a significant amount of Litecoin mining still takes place with CPUs and GPUs. This makes Litecoin mining more accessible to the ordinary citizen.

What is behind this trend?

There has been a lot of talk in recent weeks about the environmental damage caused by Bitcoin mining. Although Litecoin and Bitcoin use computationally intensive proof-of-work algorithms, Litecoin’s Scrypt model relies more on memory than pure computing power.

This reduces the advantage of ASICs and increases network participation and energy efficiency. Therefore, some argue that Litecoin is a” greener ” token.

Research conducted by TRG Datacenters shows that Litecoin consumes 18,522 kilowatt hours per transaction. Not surprisingly, Bitcoin is at the bottom of the list, consuming 707 kilowatt hours per transaction.

Interestingly, Dogecoin, which also uses a scrypt algorithm, consumes only 0.12 kilowatt hours per transaction.

At this point, it is pure speculation that crypto users are increasingly turning to Litecoin for environmental reasons.

But at the same time, the data compiled by @MASTERBTCLTC over the past three months shows a clear downward trend with lower highs in the use of Bitcoin.

Combined with the rising number of transactions on Litecoin this week, this could indicate that users are increasingly seeing Bitcoin as a store of value, rather than a coin that can be used to make payment transactions.

Buy LTC on eToro now

Text credit: Bitcoinist

Last updated on June 25, 2021

Top Brokers for buying and trading cryptocurrencies

  • Buy Real Bitcoin or Bitcoin CFDs
  • Wallet and Exchange in one
  • 14 + Cryptos
  • EU regulated
  • Over 40 cryptos on offer
  • Fees rather in the midfield

Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.