When you get closer to the world of cryptocurrencies, it is not uncommon to confuse reference assets due to the similarity of their names and the fact that very often the source codes are the same.
Well, one of the most common cases is the one that contrasts Bitcoin e Litebitcoin. Although part of the name of the virtual currency is the same, they are two different assets that it is advisable to consider separately understanding the main differences, de.cfds-trader.com is best option for trading.
How Bitcoin is used?
Bitcoin is the most famous crypto valuates in the world and is probably also a virtual currency that needs less introduction. Bitcoin is, in fact, the system that has piqued the public and financial opinion in these assets, and is still the most capitalized and traded virtual Currency in the world.
How to use Litebitcoin?
This, of course, is less well known, instead Litebitcoin, A newly introduced cryptocurrencies in the panorama of the encrypted virtual currencies, and is the result of the evolution of the same code, the Bitcoin, from which it takes its name in part.
The purpose of this fork was to enable the presence of the blockchain so that it could guarantee a higher speed and stability of the cryptographic system compared to what was already in bitcoin.
Differences
By this point, you should have already understood the differences between the two assets, and Bitcoin e Litebitcoin is two different and different currencies, and, as a rule.
The differences didn’t end here. Suffice it to recall that Bitcoin is significantly more traded and capitalized than its counterpart, and how to invest in Bitcoin is much easier thanks to the large number of brokers who have this asset on their platforms. Shortly speaking, capitalization The market capitalization of Bitcoin exceeds 250 billion dollars due to dynamic expansion, especially during this year. On the other hand, the capitalization of Lithuanian bitcoins is much more restrained. Today their capitalization is about 35 thousand dollars price, the price of bitcoin today exceeds 15 thousand dollars instead, the unit of bitcoins is 0.011148 dollars, or 0.00000074 if you prefer bitcoins, Currency in circulation The circulating bitcoins in circulation are a little over a million 3 versus a Bitcoin supply of almost a million 17, total supply As you know, most of the bitcoins have already been extracted. The remainder will be gradually available until you reach a total of 21 million bitcoins. In this sense, the scaling of Lithuanian bitcoins has just begun, given that the 3 million available units represent a small fraction of the more than 161 million bits envisioned by the project.
What is the fundamental difference between bitcoin, gold and oil?
Bitcoin, oil and gold have experienced significant price fluctuations for their long-term or short-term history. There are, however, fundamental differences, especially if we look at what happens to their availability when a price change occurs.
Oil
Any significant rises in the price of oil lead to an immediate reaction from the producers of this commodity. The higher price of the product they supply prompts them to invest more in the infrastructure to mine this black gold. On the charts, you can see how the price fell when oil production exceeded demand. Since the mining companies did not expect to produce as much oil in this situation, the volume of production decreased accordingly. At another stage, demand increased again, and companies could start mining at higher speeds.
Gold
The same goes for gold. As soon as its price rises, companies react accordingly by increasing the production of this metal. When the price of gold fell, its production also stabilized.
Bitcoin
However, in the case of bitcoin, he can see the opposite of the commodities as mentioned above. In last year, when the block mining rewards were significantly higher than today, he saw significantly lower prices for 1 BTC. Subsequently, as the price of Bitcoin rose, miners’ rewards decreased.
Thus, there is no cyclical relationship between supply and demand, as is the case with oil and gold. This course has to do with the very nature of this cryptocurrency. Mining fees are halved for every 210,000 blocks.
