Bitcoin has risen in value this year, even surpassing one ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising as cryptocurrencies are worth over a hundred billion. On the other hand, the outlook for long-term cryptocurrencies is somewhat unclear. There is hassle over the lack of progress among its primary developers which makes it less attractive as a long-term investment and as a payment system.
Bitcoin remains the most popular, and is the cryptocurrency that started it all. It is currently the largest market value of around $ 41 billion and has been around for 8 years. Around the world, Bitcoin has been used extensively and yet there is no easy way to exploit the vulnerability in the way you operate. As a payment system and as a stored value, Bitcoin enables users to easily receive and send Bitcoins. The concept of the blockchain is the basis for Bitcoin. It is essential to understand the concept of blockchain in order to understand what cryptocurrencies are all about.
To put it simply, blockchain is a database distribution that stores every network transaction as a piece of data called a “block”. Every user has blockchain copies so when you send Alice 1 Bitcoin to Mark, everyone on the network knows it.
An alternative to Bitcoin, Litecoin attempts to solve many of the problems pressing Bitcoin. It’s not quite as flexible as Ethereum with its value mostly derived from competent user adoption. It’s helpful to note that former Google employee Charlie Lee leads Litecoin. He also practices transparency in what he does with Litecoin and is very active on Twitter.
Litecoin has been the second Bitcoin tool for quite some time but things started to change early in 2017. First, Litecoin was approved by Coinbase along with Ethereum and Bitcoin. Then, Litecoin fixed the bitcoin problem by adopting Segregated Witness technology. This gave it the ability to lower transaction fees and do more. However, the deciding factor was when Charlie Lee decided to put his sole focus on Litecoin and even quit Coinbase, as he was an engineering director for Litecoin only. As a result, the price of Litecoin has risen in the past two months and the strongest factor for it is the fact that it can be a real alternative to Bitcoin.
Vitalik Buterin, the superstar Ethereum programmer, had thought that it could do everything Bitcoin could do. However, it is primarily intended as a platform for building decentralized applications. Block chains are where the differences between the two lie. Basically, the Bitcoin blockchain records the type of contract, which states whether funds have been transferred from one digital address to another. However, Ethereum is expanding as it contains more advanced language script and has a more complex and wider range of applications.
Projects began popping up on Ethereum as developers began to notice its better qualities. Through symbolic mass sales, some have raised dollars in the millions and this remains a trend that continues today. The fact that you can build cool things on the Ethereum platform makes it almost like the internet itself. This caused the price to skyrocket, so if you bought Ethereum for $ 100 early this year, it wouldn’t be worth around $ 3,000.
Monero aims to solve the problem of anonymous transactions. Even if this currency is seen as a means of laundering money, Monero aims to change that. Basically, the difference between Monero and Bitcoin is that Bitcoin features a transparent blockchain with every public and recorded transaction. With Bitcoin, anyone can find out how and where the money was transferred. However, there is some somewhat incomplete anonymity on Bitcoin. In contrast, Monero has an opaque and not transparent transaction method. Nobody sells quite this way but since some people like privacy for any purpose, Monero is here to stay.
Unlike Monero, Zcash also aims to solve Bitcoin’s problems. The difference is that instead of Monero being completely transparent, Monero is only partially public with its blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, not everyone likes to show how much money they’ve actually spent on Star Wars memorabilia. Thus, the conclusion is that this type of cryptocurrency does indeed have an audience and coveted demand, although it is difficult to point to the privacy-focused cryptocurrency that will eventually come out on top of the group.
Also known as a ‘smart token’, Bancor is the next generation of cryptocurrency standards that can hold more than one token in reserve. Basically, Bancor tries to facilitate trading, manage and create tokens by increasing its level of liquidity and allowing it to have an automated market price. Currently, Bancor has a front-end product that includes a wallet and smart token creation. There are also community features like stats, profiles, and discussions. In short, the Bancor protocol enables built-in price discovery as well as a liquidity mechanism for smart contract tokens through an innovative reserve mechanism. With a smart contract, you can instantly liquidate or purchase any of the tokens within your Bancor reserve. With Bancor, you can easily create new digital currencies. Now who wouldn’t want that?
EOS, another Ethereum competitor, promises to solve Ethereum’s scaling problem by providing a set of more powerful tools to run and build apps on the platform.
As an alternative to Ethereum, Tezos can be upgraded by mutual consent without much effort. This new blockchain is decentralized in the sense that it enjoys autonomy through the creation of a truly digital commonwealth. It facilitates a mathematical technology called formal verification and has security-enhancing features for the most weighted and financially sensitive smart contract. Definitely a big investment in the coming months.
It is extremely difficult to predict which Bitcoin on the list will become the next star. However, user approval has always been a major success factor when it comes to cryptocurrencies. Ethereum and Bitcoin both have this, and even if there is plenty of support from early adopters for every cryptocurrency on the list, some still have to prove their staying power. However, it is these who are investing and watching in the coming months.