This year, the value of Bitcoin has skyrocketed, even beyond an ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising as it raises the value of cryptocurrencies to over one hundred billion. On the other hand, the long-term cryptocurrency prospects are a bit blurry. There are disputes over lack of progress among its major 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 currently the largest market capitalization, around $ 41 billion and has existed for the past 8 years. All over the world, Bitcoin has been widely used and so far it is not easy to exploit the weakness in the method with which it works. Both as a payment system and as a stored value, Bitcoin allows users to receive and send bitcoins easily. The concept of blockchain is the basis on which Bitcoin is based. You need to understand the concept of blockchain to get an idea of what cryptocurrencies are.
Simply put, blockchain is a database distribution that stores all transactions on the network as a piece of data called a “block.” Each user has blockchain copies, so when Alice sends 1 bitcoin to Mark, everyone on the network knows it.
An alternative to Bitcoin, Litecoin is trying to solve many of the problems that hold Bitcoin back. It is not as robust as Ethereum with its value derived mainly from the adoption of solid users. It’s worth noting that Charlie Lee, a former Google leader at Litecoin. He is also practicing transparency with what he is doing with Litecoin and is quite active on Twitter.
Litecoin was Bitcoin’s second violin for quite some time, but things started to change in early 2017. First, Coinbase adopted Litecoin along with Ethereum and Bitcoin. Litecoin then solved the Bitcoin problem by adopting Segregated Witness technology. This gave him the ability to reduce transaction fees and do more. The deciding factor, however, was when Charlie Lee decided to focus exclusively on Litecoin and even left Coinbase, where he was the engineering director, only for Litecoin. Because of this, the price of Litecoin has risen in recent months and its strongest factor is the fact that it could be a real alternative to Bitcoin.
Vitalik Buterin, superstar programmer, devised Ethereum, which can do everything Bitcoin is capable of doing. However, its main purpose is to be a platform for building decentralized applications. Block chains are where the differences between the two lie. Basically, the Bitcoin blockchain registers a type of contract, which indicates whether the funds have moved from one digital address to another. However, there is a major expansion with Ethereum, as it has a more advanced language script and has a more complex and broader scope of applications.
Projects began to emerge on top of Ethereum when developers began to notice their best qualities. Through the sales of symbolic crowds, some have even raised millions of dollars and this is still an ongoing trend even today. The fact that you can create wonderful things on the Ethereum platform makes it almost like the Internet. This caused a price increase, so if you bought Ethereum worth a hundred dollars earlier this year, it wouldn’t be worth nearly $ 3,000.
Monero aims to solve the problem of anonymous transactions. Even if this currency was considered a method of money laundering, Monero intends to change it. Basically, the difference between Monero and Bitcoin is that Bitcoin includes a transparent blockchain with all public and registered transactions. With Bitcoin, anyone can see how and where the money was transferred. However, there is a somewhat imperfect anonymity to Bitcoin. In contrast, Monero has a more opaque than transparent transaction method. No one sells at all with this method, but since some people love privacy for any purpose, Monero has come to stay.
Unlike Monero, Zcash also aims to solve the problems that Bitcoin has. The difference is that instead of being completely transparent, Monero is only partially public in its blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, no one likes to show how much money they actually spent on Star Wars memories. Thus, the conclusion is that this type of cryptocurrency really has an audience and a demand, although it is difficult to point out which privacy-focused cryptocurrency will end up above the stack.
Also known as a “smart token”, Bancor is the next-generation cryptocurrency standard that can hold more than one token in reserve. Basically, Bancor tries to facilitate the trade, management and creation of tokens by increasing their level of liquidity and letting them have an automated market price. Right now, Bancor has a product on the front end that includes a portfolio and the creation of a smart token. There are also features in the community such as statistics, profiles, and discussions. In short, Bancor’s protocol makes it possible to discover an integrated price as well as a liquidity mechanism for smart contract sheets through an innovative reservation mechanism. With the smart contract, you can instantly settle or buy any of Bancor’s booking tokens. With Bancor, you can easily create new cryptocurrencies. Now who wouldn’t want that?
Another competitor to Ethereum, EOS is committed to solving the problem of the Ethereum scale by providing a set of tools that are more robust for running and creating applications on the platform.
An alternative to Ethereum, Tezos can be updated by consensus without too much effort. This new blockchain is decentralized in the sense that it is self-governing through the establishment of a true digital community. It facilitates the mathematical technique called formal verification and has functions to improve the security of the most sensitive and economically weighted smart contract. Definitely a great investment in the coming months.
It’s incredibly difficult to predict which Bitcoin on the list will become the next superstar. However, user adoption has always been a key success factor when it comes to cryptocurrencies. Both Ethereum and Bitcoin have this, and even though there is a lot of support from the first adopters of all the cryptocurrencies on the list, some have yet to demonstrate their staying power. However, these are the ones that need to be invested and monitored in the coming months.