This year the value of Bitcoin has skyrocketed, despite the previous one ounce of gold. There are also new cryptocurrencies on the market, which are even more surprising bringing the value of cryptocoins to over a hundred billion. On the other hand, the longer-term cryptocurrency-outlook is relatively unfavorable. There are drawbacks to the lack of growth among the main developers that make it less attractive as a long-term investment and as a payment system.
Still the most popular, Bitcoin is the cryptocurrency that started it all. It is now the largest market cap at nearly $ 41 billion and has been in the past 8 years. All over the world, Bitcoin is widely used and to date there is nothing wrong with taking advantage of the weakness in the way it operates. Both as a payment system and as a stored amount, Bitcoin allows users to easily receive and send bitcoin. The blockchain concept is the basis on which Bitcoin is based. It is necessary to understand the concept of blockchain to know what cryptocurrencies are all about.
Simply put, a blockchain is a distribution database that stores every transaction on the network as a chunk of data called a “block.” Each user has copies of the block so if Alice sends 1 bitcoin to Mark, everyone in the network knows it.
An alternative to Bitcoin, Litecoin is trying to solve many of the issues that plague Bitcoin. It’s not as robust as Ethereum which has value gained mostly from adopting solid users. Paid note Charlie Lee, ex-Googler heads Litecoin. He also practices transparency in what he does with Litecoin and is very active on Twitter.
Litecoin is Bitcoin’s second violin in a long time but things started to change in the first year of 2017. First, Litecoin was adopted by Coinbase along with Ethereum and Bitcoin. Next, Litecoin corrected the Bitcoin issue by adopting Segregated Witness technology. It gives the capacity to shorten the transaction fee and more to do. The key factor, however, was Charlie Lee’s decision to put his full attention on Litecoin and even leave Coinbase, where he is the Engineering Director, solely for Litecoin. As a result, the price of Litecoin has risen in the last single month with the strongest reason being that it could be a real alternative to Bitcoin.
Vitalik Buterin, superstar programmer thinks Ethereum, can do everything Bitcoin can. Although its purpose, primarily, is to be a platform to build decentralized applications. The blockchains where the differences between the two lie. Basically, the Bitcoin blockchain records a type of contract, one that tells when funds are transferred from one digital address to another address. However, there is a significant upside to Ethereum because it has more advanced writing language and has a more complex, wider scope of applications.
Projects started to thrive on top of Ethereum when developers started noticing better qualities. Through the token crowd sellers, some have even raised millions of dollars and it still continues to be a trend even to this day. The fact that you can build weird things on the Ethereum platform makes it almost like the internet. This causes the price to skyrocket so if you buy a hundred dollar worth of Ethereum last year, it won’t cost nearly $ 3000.
Monero aims to resolve the issue of anonymous transactions. Even if this money is considered a way to launder money, Monero intends to change it. Basically, the difference between Monero and Bitcoin is that Bitcoin has a transparent block on every transaction that is public and recorded. With Bitcoin, anyone can see how and where money is transferred. There are some that aren’t completely unfamiliar with Bitcoin, though. In contrast, Monero has an opaque rather than transparent transaction method. No one is sold this way but since some people want privacy for any purpose, here’s where Monero stays.
Unlike Monero, Zcash also aims to solve the issues that exist with Bitcoin. The difference is that instead of being completely transparent, Monero is just part of the public blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, not everyone who loves shows how much money they spend on Star Wars memorabilia. Thus, the conclusion is that this type of cryptocoin actually has an audience and a need, although it is difficult to pinpoint which cryptocurrency focuses on privacy will eventually come out on top of the pile.
Also known as a “smart token,” Bancor is the new standard generation of cryptocurrencies that can have more than one token provided. Basically, Bancor tried to make it easy to sell, manage and generate tokens by increasing their liquidity level and allowing them to be priced at market automatically. Right now, Bancor has a front-end product that comes with a wallet and creates a smart token. There are also community features such as statistics, profiles and topics. In short, the Bancor protocol allows for the detection of a cryptocurrency as well as a mechanism for digestion for smart contractual tokens through a newly provided mechanism. Through a smart contract, you can immediately liquidate or purchase any tokens within the Bancor reserve. With Bancor, you can easily create new cryptocoins. Now who doesn’t want that?
Another competitor to Ethereum, EOS has promised to solve the issue of scaling up Ethereum by providing a set of tools that are more powerful to run and create apps on the platform.
An alternative to Ethereum, Tezos can be upgraded consensually without much effort. This new blockchain has moved centralized in the sense that it governs itself by building a digital real Commonwealth. It speeds up the mathematical process called formal authentication and has features that increase the security of the most financially sensitive, sensitive smart contracts. Definitely a good investment in the coming months.
No wonder it’s hard to predict which Bitcoin on the list will be the next superstar. However, user adoption has always been a key factor in the success of the advent of cryptocurrency. Both Ethereum and Bitcoin have it and although there is a lot of support from the first adopters of every cryptocurrency on the list, others have yet to prove their sustaining power. However, these are to be invested and watched over in the coming months.