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Litecoin vs. Bitcoin Cash: The Winner Is...DownloadSubscribe

Litecoin vs. Bitcoin Cash: The Winner Is...


    Litecoin vs. Bitcoin Cash Intro

    Litecoin (LTC) and Bitcoin Cash (BCH) are two popular cryptocurrencies that present themselves as alternatives to Bitcoin (BTC). Litecoin is one of the oldest cryptocurrencies and was launched in 2011, just two years after Satoshi created Bitcoin.

    Litecoin uses a slightly different Proof of Work mining consensus mechanism (transaction verification mechanism) than Bitcoin and it also has a faster transaction time.

    Bitcoin Cash was created to try and solve Bitcoin’s scaling problem (BTC’s inability to handle lots of transactions). Because of its large block size (more transactions per block, or grouping, of transactions), Bitcoin Cash can handle more transactions than Bitcoin.

    Bitcoin Cash’s large blocks not only increase capacity, they also reduce fees on the BCH network since transactions don’t have to compete as much to be included in new blocks.

    In this article, we’ll compare Litecoin vs. Bitcoin Cash, including their hashrate (total network mining “power”), transaction fees, and their historical price action.


    Litecoin vs. Bitcoin Cash Speed

    Bitcoin Cash has the same block time as Bitcoin (about 10 minutes per block). You can verify that block time by checking here.

    This means that it takes about 10 minutes for a new transaction to be processed and included in a new block of BCH transactions.

    Though if you want to wait for a transaction to be fully confirmed on the BCH network that will take 20 to 60 minutes, depending on how many block confirmations (the number of new blocks including yours that get confirmed) the merchant requires.

    When people talk about Bitcoin Cash being faster than Bitcoin, what they’re usually referring to are zero confirmation transactions (transactions that are valid without having to be confirmed by the network).

    The BCH team encourages merchants to accept zero confirmation transactions so that payments can clear in just 5 or 10 seconds.

    The Litecoin network has a new block about every 2 to 3 minutes.

    How “quick” a transaction is will depend on how many confirmations a merchant requires. For example, Kraken requires 12 confirmations before Litecoin deposits show up in a user’s account. That means a deposit time of about 30 minutes.

    Some merchants will accept just 1 or 2 confirmations on the Litecoin network, so a clearing time of 3 to 6 minutes. On average merchants require 6 confirmations, which means 15 to 20 minute transactions when using Litecoin.

    So when using either BCH or LTC, if you’re waiting for a fully confirmed transaction the time is about the same: 30 minutes. Zero confirmation transactions are popular on BCH and these can be very quick, however, they are not fully secure, since more confirmations are necessary to prevent double spend attacks.

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    Litecoin vs. Bitcoin Cash Fees

    What about Litecoin or Bitcoin Cash when it comes to transaction fees?

    When we compare the fees for using the two networks, we can see that the Litecoin fee has been consistently dropping over the last year. As of publication, the LTC fee is less than $0.01, hardly an expensive transaction.

    Bitcoin Cash on the other hand has a very consistent fee that has changed little in the last year. That’s thanks to Bitcoin Cash’s big blocks which can accommodate a large number of transactions. There were only a few days in the last year when a transaction on the Bitcoin Cash network cost more than $0.01.

    Litecoin vs. Bitcoin Cash fees
    The Litecoin transaction fee has been consistently falling while the Bitcoin Cash fee has always remained low. Image credit: BitInfoCharts

    Litecoin vs. Bitcoin Cash Hashrate

    Next up when comparing Bitcoin Cash vs. Litecoin is hashrate. Hashrate is the total “mining power” that miners or transaction validators commit to a given network.

    A higher hashrate means that the network is more secure. This is because more hashrate, which requires money and technical expertise (to set up mining equipment), is necessary for any one person or group to gain control over the network by gaining 51% or more of the network’s hashrate (a “51% attack”).

    When it comes to LTC, the Litecoin hashrate has been falling in the last year. In June 2019, it was at about 430 TH/s. By June of 2020 the hashrate had dropped to about 230 TH/s a second. This indicates that fewer miners are securing the LTC network which could potentially make Litecoin more vulnerable to a 51% attack.

    The Litecoin hashrate has not been doing well as of late. Image credit: BitInfoCharts

    On the other hand, the Bitcoin Cash hashrate has remained mostly consistent.

    The Bitcoin Cash hashrate has been mostly consistent. Image credit: BitInfoCharts

    One unique feature of Bitcoin Cash is that Bitcoin (BTC) miners can also secure the network. If mining BCH becomes especially profitable, it’s possible to see a fast spike in the Bitcoin Cash hashrate as BTC miners start mining BCH.


    Litecoin vs. Bitcoin Cash Reddit

    There are a lot of Reddit threads discussing the differences, as well as the pros and cons, of Litecoin and Bitcoin Cash.

    We’ll link to some of these threads but it’s important to keep in mind, many of the cryptocurrency communities on Reddit are tribal and much of what’s said should be viewed with some critical thinking.

    That disclaimer aside, here are a few threads comparing LTC and BCH:

    Litecoin vs. Bitcoin Cash - Are they viable alternative payment networks?

    LTC vs. BCH. Which one is better?

    Bitcoin Cash vs Litecoin

    What’s different about BCH vs Litecoin?

    Or, if you’d prefer to have a discussion about Litecoin and Bitcoin Cash somewhere besides Reddit, there is also the Exodus public Slack channel!


    Litecoin and Bitcoin Cash Controversy

    Both Bitcoin Cash and Litecoin have some controversy surrounding the project. Charlie Lee, the founder of Litecoin, sold all of his LTC holdings near the market peak in 2017.

    While it was a brilliant financial move, he timed the market top near perfectly, it didn’t exactly inspire a lot of faith in the Litecoin community. It would be like Jeff Bezos selling all his shares of Amazon; people would wonder why he did it?

    For Bitcoin Cash, there is almost a constant controversy surrounding the project’s leader, Roger Ver. In the crypto community, Ver is a polarizing figure who isn’t afraid to speak his mind.

    He’s also not afraid to promote his own coin. If you go to Bitcoin.com and try to buy Bitcoin, the default option is buying BCH, which could be very confusing for people just getting into crypto.

    Besides his controversial marketing practices, there are those in crypto who feel that by forking Bitcoin, Roger Ver has diluted the value of BTC. Would the price of BTC be higher without BCH? We’ll never know.

    One good thing about Roger Ver is that he’s a tireless proponent of crypto and is always trying to get influential people and retailers involved with blockchain. His efforts to boost cryptocurrency adoption may outweigh any negative effects of forking Bitcoin.


    Litecoin vs. Bitcoin Cash Conclusion

    Litecoin and Bitcoin Cash have a lot in common. They both market themselves as faster alternatives to Bitcoin.

    However, given Bitcoin Cash’s lower transaction fees, higher hashrate, better price action, and Roger Ver’s aggressive promotion of BCH (vs. Charlie Lee selling all his LTC), Bitcoin Cash has the upper hand.

    Either way, both projects are interesting, and hopefully, this article comparing Litecoin vs. Bitcoin Cash has been useful in helping you to choose the coin that you’d prefer to use and/or invest in.

    Information provided is for informational purposes only and should not be considered financial advice. Investing in crypto assets is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Past performance is not indicative of future results.

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