This year, the value of Bitcoin has risen by as much as one ounce of gold. There are also new cryptocurrencies on the market, making it even more surprising that cryptocoins are worth more than a hundred billion. On the other hand, the longer-term outlook for cryptocurrencies is somewhat vague. Its main developers have looked ahead due to a lack of progress, making 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. This is currently the upper limit of the market at around € 41 billion. USD and it has been for the last 8 years. Bitcoin has been widely used around the world and it is still not easy to exploit the weakness of its method of operation. Both as a payment system and as a stored value, Bitcoin allows users to easily receive and send bitcoins. The Blockchain concept is the foundation on which Bitcoin is based. To understand what cryptocurrencies are, it is necessary to understand the concept of blockchain.
Simply put, a blockchain is a database distribution in which each network operation is stored as a piece of data called a “block”. Every user has copies of the blockchain, so when Alice sends 1 bitcoin to Mark, everyone on the network knows it.
One of Bitcoin’s alternatives, Litecoin is trying to solve many of the problems that hold Bitcoin. It is not as resilient as Ethereum, whose value comes mainly from accepting strong consumers. It is worth noting that Litecoin is run by former Google employee Charlie Lee. He also practices transparency with what he does with Litecoin and is quite active on Twitter.
Litecoin has long been Bitcoin’s second violin, but things started to change in 2017. In the beginning. First, Litecoin adopted Coinbase along with Ethereum and Bitcoin. Litecoin then solved the Bitcoin problem by adopting separate witness technology. This provided an opportunity to reduce transaction fees and do more. The deciding factor, however, was when Charlie Lee decided to focus on Litecoin and even left Coinbase, where he was director of engineering, to Litecoin alone. As a result, the price of Litecoin has risen over the past couple of months, and the strongest factor has been that it can be a real alternative to Bitcoin.
Vitalic Buterin, a superstar programmer, came up with Ethereum, which can do everything Bitcoin can. But above all, it aims to be a platform for developing decentralized programs. Block chains are where the differences between the two lie. In essence, the chain of Bitcoin blocks records the type of contract that indicates whether funds have been transferred from one digital address to another. However, Ethereum is significantly expanded because it has a more advanced language script and a more complex, broader scope.
Projects began to sprout on Ethereum as developers began to notice better features. Symbolic crowd sales are being sold, some have even raised millions of dollars, and this is still a continuing trend even to this day. The fact that you can create amazing things on the Ethereum platform makes it almost like the internet itself. That caused a very high price, so if you buy a hundred dollars worth of Ethereum earlier this year, it won’t be valued at nearly $ 3,000.
Monero seeks to address the issue of anonymous transactions. Even if this currency was perceived as a way to launder money, Monero seeks to change it. Basically, the difference between Monero and Bitcoin is that Bitcoin has a transparent chain of blocks with each public and recorded transaction. With Bitcoin, everyone can see how and where the money was transferred. But Bitcoin is a bit of an imperfect anonymity. In contrast, Monero’s method of operations is opaque rather than transparent. No one sells 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 completely transparent, Monero is only partially public in its blockchain style. Zcash is also working to resolve the issue of anonymous transactions. After all, not everyone likes to show how much money they actually spent in memory of Star Wars. Thus, it is concluded that cryptocoins of this type do have an audience and demand, although it is difficult to indicate which cryptocurrency, which focuses on privacy, will eventually appear on the pile.
Also known as the “smart token”, Bancor is a next-generation cryptocurrency standard that can hold more than one token in reserve. In essence, Bancor seeks to facilitate trading, management and chip generation by increasing their level of liquidity and allowing them to have an automated market price. Bancor currently has a product on its front that includes wallet and smart chip creation. The community also has features like statistics, profiles, and discussions. In short, the Bancor protocol makes it possible to discover the built-in price, as well as the liquidity mechanism of advanced contract tokens, through an innovative reserve mechanism. With a smart contract, you can immediately liquidate or purchase any token in the Bancor reserve. With Bancor, you can easily create new cryptocolls. Who wouldn’t want that?
Another competitor of Ethereum, EOS, promises to solve the issue of Ethereum scalability by providing a set of tools that is more reliable to run and build applications on the platform.
The alternative Ethereum, Tezos can be agreed upon without much effort. This new chain of blocks is decentralized in the sense that it is self-contained, creating a true digital community. This facilitates a mathematical methodology called official verification and features security-enhancing, financially weighted, most sensitive smart contracts. Definitely a great investment in the coming months.
It is extremely difficult to predict which Bitcoin on the list will become the next superstar. However, user acquisition has always been one of the key success factors when it comes to cryptocurrencies. It has both Ethereum and Bitcoin, and even if early users of each cryptocurrency on the list are heavily supported, some have yet to prove their enduring power. Nevertheless, they need to be invested in and guarded for in the coming months.