This year the value of Bitcoin has increased, even an ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising as it brings cryptocurrency values up to more than a hundred billion. On the other hand, the long-term perspective of cryptocurrency is somewhat unclear. There are quarrels of lack of progress among its major developers that make it less attractive as a long-term investment and as a payment system.
Even more popular, Bitcoin is the cryptocurrency that started it all. It is currently the largest market cap with about $ 41 billion and has existed for the last 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 that works. As a payment system and as a stored value, Bitcoin allows users to easily receive and send bitcoin. The concept of blockchain is the basis on which Bitcoin is based. It is necessary to understand the concept of blockchain to get an understanding of what cryptocurrencies are all about.
Simply put, blockchain is a database distribution that stores each network transaction as a piece of data called a “blockchain”. Every user has a copy of the blockchain so when Alice sends 1 bitcoin to Mark, every person on the network knows it.
An alternative to Bitcoin, Litecoin tries to resolve many of the issues that hold down Bitcoin. It is not as resilient as Ethereum with its value derived mainly from the adoption of rigid users. It is worth noting that Charlie Lee, former Googler leads Litecoin. He is also practicing transparency with what he is doing with Litecoin and is quite active on Twitter.
Litecoin was Bitcoin’s second thing for quite some time, but things started to change in early 2017. First, Litecoin was approved by Coinbase along with Ethereum and Bitcoin. Next, Litecoin settled the Bitcoin issue by adopting Separate Witness technology. This gave her the ability to lower transaction fees and do more. The crucial factor, however, was when Charlie Lee decided to focus on Litecoin and even left Coinbase, where he was Director of Engineering, just for Litecoin. Because of this, the price of Litecoin has risen in the last two months with its strongest factor being the fact that it could be a real alternative to Bitcoin.
Vitalik Buterin, the superstar programmer thought of Ethereum, which can do everything Bitcoin is able to do. However, its main purpose is to be a platform to build decentralized applications. Blockchains are where the differences between the two lie. Basically, Bitcoin blocking registers a kind of contract, one that says if the funds have been moved from one digital address to another. However, there is a noticeable expansion with Ethereum as it has a more advanced language script and has a more complex, wider range of applications.
Projects began to sprout on top of Ethereum when developers began to notice its best qualities. Through sign crowd sales, some have even amassed millions of dollars and this is still an ongoing trend to this day. The fact that you can build great things on the Ethereum platform makes it almost like the internet itself. This caused a high price increase, so if you buy an Ethereum worth a hundred dollars earlier this year, it would not be valued at nearly $ 3000.
Monero intends to resolve the issue of anonymous transactions. Even if this currency is perceived to be a money laundering method, Monero intends to change that. Basically, the difference between Monero and Bitcoin is that Bitcoin contains a transparent blockchain with every public and registered transaction. With Bitcoin, anyone can see how and where the money has moved. However, there is a somewhat imperfect anonymity in Bitcoin. In contrast, Monero has a transparent and non-transparent method of transaction. No one has sold enough on this method, but since some people love privacy for whatever purpose, Monero is here to stay.
Unlike Monero, Zcash also aims to resolve issues that Bitcoin has. The difference is that instead of being completely transparent, Monero is only partially public in his blocking 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 say which cryptocurrency that focuses on privacy will eventually come out on top of the pile.
Also known as a “smart token”, Bancor is the standard of the new generation of cryptocurrencies that can hold more than one backup token. Essentially, Bancor strives to make trading easier, managing and creating arguments by increasing their liquidity level and letting them have an automated market price. At the moment, Bancor has a product on the front that includes a portfolio and the creation of an intelligent token. There are also features in the community such as statistics, profiles and discussions. In short, the Bancor protocol enables the discovery of an integrated pricing as well as a liquidity mechanism for smart contractual signs through an innovative backup mechanism. Through the smart contract, you can immediately liquidate or buy any of the tokens within the Bancor reserve. With Bancor, you can easily create new cryptocurrencies. Now who wouldn’t want it?
Another Ethereum competitor, EOS promises to address the issue of Ethereum scaling by providing a range of tools that are more powerful to run and build applications on the platform.
An alternative to Ethereum, Tezos can be updated consensually without much effort. This new blockade is decentralized in the sense that it is self-governing through the creation of a true digital commune. It facilitates the mathematical technique called formal verification and has features that increase the security of the most financially weighted, sensitive intelligence contract. Definitely an excellent investment in the coming months.
It’s incredibly difficult to predict which Bitcoin on the list will become the next super star. 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 early adopters of every cryptocurrency on the list, some have yet to prove their resilience. However, these are the ones to invest in and see in the coming months.