This year the value of Bitcoin has skyrocketed, despite last ounce of gold. There are also new cryptocurrencies on the market, more surprisingly bringing in the value of cryptocoins up to over a hundred billion. On the other hand, the longer-term cryptocurrency-outlook is somewhat negative. There are shortcomings in the lack of growth among the chief developers 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. It now has the largest market cap of nearly $ 41 billion and has been in the last 8 years. Worldwide, Bitcoin is widely used and to this day there is nothing wrong with exploiting the vulnerability of the way it operates. Both as a payment system and as a savings account, Bitcoin allows users to easily receive and send bitcoin. The blockchain concept is the basis on which Bitcoin is based. It is necessary to understand the concept of blockchain to know what part of cryptocurrencies is.
Simply put, a blockchain is a distribution of databases that stores every transaction in the network as a piece of data called a “block.” Each user has copies of the block so if Alice sends 1 bitcoin to Marcos, everyone on the network knows it.
An alternative to Bitcoin, Litecoin is trying to solve many issues that hinder Bitcoin. It is not as robust as Ethereum with the amount gained mostly from adopting solid users. Paid note that Charlie Lee, ex-Googler leads Litecoin. He also practices transparency in what he does with Litecoin and is active on Twitter.
Litecoin has been Bitcoin’s second currency for a long time but things started to change in the first year of 2017. First, Litecoin was adopted by Coinbase along with Ethereum and Bitcoin. Next, Litecoin corrected the Bitcoin issue by adopting Segregated Witness technology. It is given the capacity to reduce transaction fees and much more to do. The fact of the matter, however, was that Charlie Lee decided to devote his full attention to Litecoin and even left Coinbase, of which he was the Engineering Director, for Litecoin. As a result, the price of Litecoin rose in the last single month with the strongest reason that this is why it can be a real alternative to Bitcoin.
Vitalik Buterin, superstar programmer thinks Ethereum, can do everything Bitcoin can. Despite its purpose, primarily, it can serve as a platform to build decentralized applications. Blockchains where the differences between the two lie. Basically, the Bitcoin blockchain records a class of contracts, one that tells when funds are transferred from one digital address to another address. However, Ethereum has significant expansion because it has more advanced written language and has a more complex, broader scope of applications.
Projects began to thrive on Ethereum when developers began noticing better quality. Through the token crowd sellers, some have even raised millions of dollars and this trend continues to this day. The fact that you can build weird things on the Ethereum platform makes it almost like the internet. This caused a price increase so if you bought a one hundred dollar worth of Ethereum last year, it would not be worth nearly $ 3000.
Monero aims to address the issue of anonymous transactions. Even if money is considered a way to wash money, Monero intends to change it. Basically, the difference between Monero and Bitcoin is that Bitcoin has a transparent block on every transaction that is public and recorded. With Bitcoin, anyone can see how and where money is transferred. There are some imperfections that do not fully introduce Bitcoin, though. In contrast, Monero has an opaque rather than transparent transaction method. No one is sold this way but since some people want privacy for any purpose, here Monero will stay.
Unlike Monero, Zcash also aims to address the issues facing Bitcoin. The difference is that instead of being completely transparent, Monero is just one part of the public blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, not everyone who loves shows how much money they spend on Star Wars memorabilia. Thus, the conclusion is that this type of cryptocoin actually has an audience and a need, even if it is difficult to focus on what cryptocurrency is focusing on privacy will eventually come out on top of the pile.
Also known as a “smart token,” Bancor is the new generation of cryptocurrencies that can have more than one token provided. Basically, Bancor is trying to make it easier to sell, manage and make tokens by increasing their liquid level and allowing them to have a market price automatically. Currently, Bancor has a front-end product that comes with a wallet and a smart token. There are also community features such as statistics, profiles and discussions. In short, the Bancor protocol allows for the discovery of an internal interface as well as a melting mechanism for intelligent contractual tokens through a newly provided mechanism. With a smart contract, you can immediately liquidate or purchase any tokens within the Bancor reserve. With Bancor, you can easily create new cryptocoins. Now who doesn’t like that?
Another competitor to Ethereum, EOS promises to solve the Ethereum scaling issue by providing a set of tools that are more powerful in running and creating platform applications.
An alternative to Ethereum, Tezos can be upgraded consensually without much effort. This new blockchain has been centralized in the sense that it is self-governing by building a digital real Commonwealth. It speeds up the mathematical process called formal authentication and has features that enhance the security of the heaviest financial, sensitive contract wise. Definitely a good investment in the coming months.
It is not surprising that it is difficult to predict which Bitcoin on the list will be the next superstar. However, user acceptance has always been a key factor in the success of cryptocurrency. Both Ethereum and Bitcoin have it and although there is a lot of support from the first adopters of every cryptocurrency on the list, some have yet to prove their sustainability. However, these will be invested and monitored in the coming months.