This year, the value of Bitcoin has skyrocketed, even past one gold ounce. There are also new cryptocurrencies on the market, which is even more surprising bringing the value of cryptocurrencies to over one hundred billion. On the other hand, the long-term outlook for cryptocurrency is somewhat bleak. There is controversy over lack of progress among its core developers that makes it less attractive as a long-term investment and as a payment system.
Still the most popular, Bitcoin is the crypto-currency that started it all. It is currently the largest market capitalization of about $ 41 billion and has been in existence for the past 8 years. Bitcoin has been widely used around the world and so far it has not been easy to exploit weakness in the method it works. Both as a payment system and as a stored value, Bitcoin enables users to easily receive and send bitcoins. The concept of the blockchain is the basis on which Bitcoin is based. It is necessary to understand the blockchain concept to get an idea of what the cryptocurrencies are all about.
cheap plane tickets
To put it simply, blockchain is a database distribution that stores every network transaction as a piece of data called a “block”. Every user has blockchain copies, so when Alice sends 1 bitcoin to Mark, every person on the network knows it.
One alternative to Bitcoin, Litecoin tries to solve many of the problems that repress Bitcoin. It’s not quite as resilient as Ethereum, with its value coming mainly from the acceptance of solid users. It’s worth noting that Charlie Lee, former Googler Litecoin leads. He also exercises transparency with what he does with Litecoin and is quite active on Twitter.
Litecoin has been Bitcoin’s second fiddle for some time, but things started to change early in the year of 2017. First, Litecoin was adopted by Coinbase along with Ethereum and Bitcoin. Litecoin then resolved the Bitcoin issue by adopting the technology of Segregated Witness. This gave him the ability to lower transaction fees and do more. The deciding factor, however, was when Charlie Lee decided to place his only focus on Litecoin and even left Coinbase, where he was the Engineering Director, just for Litecoin. As a result, the price of Litecoin has risen over the past few months, with the strongest factor being that it could be a real alternative to Bitcoin.
Vitalik Buterin, superstar programmer, invented Ethereum, which can do everything Bitcoin can do. However, its purpose is primarily to be a platform for building decentralized applications. The blockchains are where the differences between the two lie. Basically, the Bitcoin blockchain records a type of contract, one that indicates whether funds have been moved from one digital address to another. However, there is significant expansion with Ethereum, as it has a more advanced language script and a more complex, broader scope.
Projects started popping up on top of Ethereum when developers started noticing its better features. Through signs of crowd sales, some have even raised millions of dollars and this is still a continuing trend to this day. The fact that you can build amazing things on the Ethereum platform makes it almost like the internet itself. This caused a price increase, so if you bought a hundred dollar Ethereum earlier this year, it would not be worth nearly $ 3000.
Monero seeks to resolve the issue of anonymous transactions. Even if this currency is considered a method of laundering money, Monero intends to change it. Basically, the difference between Monero and Bitcoin is that Bitcoin has a transparent blockchain with every transaction that is public and recorded. With Bitcoin, anyone can see how and where the money has been moved. However, there is somewhat imperfect anonymity on Bitcoin. In contrast, Monero has an opaque rather than transparent transaction method. No one is completely sold on this method, but since some people like privacy for whatever purpose, Monero is here to stay.
Unlike Monero, Zcash also seeks to solve the problems that Bitcoin has. The difference is that rather than being completely transparent, Monero is only partially public in its blockchain style. Zcash also seeks to address the issue of anonymous transactions. After all, not every person likes to show how much money they actually spent on memorabilia by Star Wars. The conclusion is therefore that this type of cryptocurrency really has an audience and a 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 the new generation standard of cryptocurrencies that can hold more than one token in reserve. Basically, Bancor aims to make it easy to trade, manage and create tokens by increasing their level of liquidity and giving them a market price that is automated. Right now, Bancor has a product up front that includes a wallet and the creation of a smart token. There are also features in the community such as statistics, profiles and discussions. In a nutshell, Bancor’s protocol enables the discovery of a built-in price as well as a liquidity mechanism for smart contractual tokens through an innovative reserve mechanism. By smart contract, you can liquidate or buy any of the tokens immediately in the Bancor reserve. With Bancor, you can easily create new cryptocurrencies. Now who does not want it?
Another competitor of Ethereum, EOS promises to solve the scale issue of Ethereum by providing a set of tools that are more robust to run and create applications on the platform.
An alternative to Ethereum, Tezos can be upgraded with consent without too much effort. This new blockchain has been decentralized in the sense that it is self-governing through the establishment of a digital true community. It facilitates the mathematical technique called formal verification and has security-enhancing features of the most financially weighted, sensitive smart contract. Definitely a great investment in the months to come.
It’s incredibly difficult to predict which Bitcoin will be the next superstar on the list. However, user adoption has always been one key success factor when it comes to cryptocurrencies. Both Ethereum and Bitcoin have it and even though there is a lot of support from early adopters of every cryptocurrency in the list, some still need to prove their endurance. Nevertheless, these are the ones to invest in and pay attention to in the coming months.