This year, the value of Bitcoin has skyrocketed, even after an ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising, bringing the value of cryptocurrencies to more than one hundred billion. On the other hand, the long-term cryptocurrency prospects are somewhat blurred. There are disputes over lack of progress among its core 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, with about $ 41 billion and has existed for the past 8 years. All over the world, Bitcoin has been widely used and so far there is no easy-to-exploit weakness in the method that 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.
To simplify, blockchain is a database distribution that stores all network transactions as a piece of data called a “block.” Each user has blockchain copies, so when Alice sends 1 bitcoins to Mark, everyone on the network knows it.
An alternative to Bitcoin, Litecoin tries 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 Googler, leads Litecoin. He also practices transparency with what he does 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, Litecoin was adopted by Coinbase 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 solely on Litecoin and even left Coinbase, where he was the director of engineering, only for Litecoin. Because of this, the price of Litecoin has risen in the last two months, with the strongest factor being the fact that it could be a real alternative to Bitcoin.
Vitalik Buterin, superstar programmer, thought Ethereum, that it can do everything Bitcoin can do. However, its main purpose is to be a platform for building decentralized applications. Blockchains are the differences between the two. Basically, the Bitcoin blockchain records a type of contract, which determines whether funds have moved from one digital address to another. However, there is a significant 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 people, some have even reached millions of dollars and this is a trend continued even to this day. 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 buy Ethereum for $ 100 percent earlier this year, it wouldn’t be valued at nearly $ 3,000.
Monero aims to solve the problem of anonymous transactions. Even if this currency was perceived as a method of money laundering, Monero intends to change it. Basically, the difference between Monero and Bitcoin is that Bitcoin features a transparent blockchain with all public and registered transactions. With Bitcoin, everyone can see how and where the money moved. However, there is a somewhat imperfect anonymity to Bitcoin. In contrast, Monero has a more opaque than transparent transaction method. No one is sold with this method, but since some people love privacy for any purpose, Monero is here to stay.
Unlike Monero, Zcash also aims to solve the problems that Bitcoin has. The difference is that instead of being fully transparent, Monero is only partially public in its blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, not everyone loves to show how much money they’ve actually spent on Star Wars memorabilia. So the bottom line is that this type of cryptocurrency really has an audience and a demand, although it’s hard to pinpoint which cryptocurrency that focuses on privacy will end up coming out on top of the stack.
Also known as “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. For now, Bancor has a product on the front that includes a portfolio and the creation of a smart token. There are also features in the community such as statistics, profiles, and discussions. Simply put, Bancor’s protocol allows for the discovery of a built-in price, as well as a liquidity mechanism for smart contract tokens through an innovative booking mechanism. With a 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 of Ethereum, EOS promises to solve the problem of Ethereum scale by providing a more robust set of tools to run and create applications on the platform.
An alternative to Ethereum, Tezos can be upgraded 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 features that increase the security of the financially heavier and more sensitive 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, the adoption of users 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 not yet demonstrated their staying power. However, they are the ones that need to be invested and monitored in the coming months.