This year, the value of Bitcoin has risen, even after one ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising that it brings cryptocurrencies worth more than one hundred billion. On the other hand, the longer-term outlook for cryptocurrencies is somewhat blurred. There is disagreement due to the lack of progress among major developers, which makes 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 cap with about $ 41 billion and has existed for the past 8 years. Bitcoin is widely used around the world and so far it is not easy to exploit weaknesses in the way it works. Both as a payment system and as a stored value, Bitcoin allows users to easily receive and send bitcoin. The blockchain concept is the foundation on which Bitcoin is based. You need to understand the blockchain concept to get an idea of what cryptocurrencies are all about.
Simply put, a blockchain is a database distribution that stores each network transaction as a block of data called a “block”. Every user has blockchain copies so when Alice Marku sends 1 bitcoin, every person online knows it.
One of the alternatives to Bitcoin, Litecoin is trying to address many of the issues that keep Bitcoin. It’s not quite as resilient as Ethereum with its value stemming mostly from the adoption of solid users. It is worth noting that Charlie Lee, a former Googler, runs Litecoin. He also exercises transparency of what he does with Litecoin and is quite active on Twitter.
Litecoin has been Bitcoin’s second fiddle for a while, but things started to change in early 2017. Litecoin first adopted Coinbase along with Ethereum and Bitcoin. Further, Litecoin fixed the Bitcoin problem by adopting separate witness technology. This gave him the capacity to reduce transaction costs and do more. The deciding factor, however, was when Charlie Lee decided to focus his only focus on Litecoin and even left Coinbase, where he was director of engineering, for Litecoin only. As a result, the price of Litecoin has risen in recent months, and its strongest factor was the fact that it could be a real alternative to Bitcoin.
Vitalik Buterin, a superstar programmer, came up with Ethereum, which can do everything Bitcoin can do. However, its purpose is primarily to be a platform for building decentralized applications. There are differences between the two in the blocks. Basically, a Bitcoin blockchain records a contract type, which specifies whether funds have been moved from one digital address to another. However, there is a significant expansion with Ethereum because it has a more advanced language script and a more complex, wider range of applications.
Projects began to emerge at the top of Ethereum when developers began to notice its better qualities. Through symbolic sales, some have even raised dollars in the millions, and this is still a continuing trend to this day. The fact that you can build wonderful things on the Ethereum platform makes it almost similar to the internet itself. This caused a price jump, so if you bought a hundred dollars worth of Ethereum earlier this year, it wouldn’t be estimated at nearly $ 3,000.
Monero strives to solve the problem of anonymous transactions. Even if this currency was considered a money laundering method, Monero wants to change that. Basically, the difference between Monera and Bitcoin is that Bitcoin contains a transparent blockchain with every transaction public and recorded. With Bitcoin, anyone can see how and where the money is moved. However, there is a somewhat imperfect anonymity of Bitcoin. In contrast, Monero has an opaque rather than a transparent method of transaction. No one is sold by this method, but since some people like privacy for any purpose, Monero is here to stay.
Unlike Monera, Zcash also wants to solve the problems that Bitcoin has. The difference is that Monero, instead of being completely transparent, is only partially public in its blockchain style. Zcash also aims to address the issue of anonymous transactions. After all, no person likes to show how much money they actually spent on Star Wars memorabilia. So, the conclusion is that this type of cryptocoin really has an audience and demand, although it is difficult to point out which cryptocurrency that focuses on privacy will eventually come out on top.
Also known as a “smart token”, Bancor is a new generation cryptocurrency standard that can hold more than one token in reserve. Basically, Bancor seeks to facilitate the trading, management and creation of tokens by increasing their level of liquidity and enabling automatic market pricing. Currently, Bancor has a product on the front that includes a wallet and creating a smart token. There are also functions in the community such as statistics, profiles and discussions. In short, the Bancor protocol enables the detection of the embedded price as well as the liquidity mechanism of smart contract tokens through the innovative reserve mechanism. Through a smart contract you can instantly liquidate or buy any token from the Bancor reserve. With Bancor, you can easily create new cryptocurrencies. Now who wouldn’t want that?
Another Ethereum competitor, EOS, promises to solve the problem of scaling Ethereum 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 upgraded by agreement without too much effort. This new blockchain is decentralized in the sense that it is self-governing by establishing a digital true community. It provides a mathematical technique called formal verification and has features to increase the security of the most financially important, sensitive smart contracts. Definitely a big investment in the coming months.
It’s incredibly hard to predict which Bitcoin will become the next superstar on the list. However, user adoption has always been one of the key success factors when it comes to cryptocurrencies. Both Ethereum and Bitcoin have this, and even if there is strong support from early adopters of each cryptocurrency on the list, some have not yet proven their consistency. However, they should be invested in and monitored in the coming months.