This year, the value of bitcoin has risen, even by an ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising, as cryptocurrencies are worth more than a hundred billion. On the other hand, the long-term cryptocurrency outlook is somewhat vague. There is controversy among its main developers about the lack of progress, which makes it less attractive as a long-term investment and payment system.
Bitcoin, which is still the most popular, is the cryptocurrency that started it all. It currently has the largest market capitalization of 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 take advantage of the weakness of the method it works. As both a payment system and a stored value, Bitcoin allows users to easily receive and send bitcoins. The blockchain concept is the basis on which Bitcoin is based. To understand what cryptocurrencies are, you need to understand the concept of blockchain.
Simply put, a blockchain is a database distribution that stores each network operation as a set of data called a “block.” Every user has a blockchain copy, so everyone on the network knows when Alice Marka sends 1 bitcoin.
Litecoin, an alternative to Bitcoin, seeks to solve many of the problems that keep Bitcoin going. It is not as durable as Ethereum, mainly due to the value gained from the acceptance of solid users. It should be noted that Charlie Lee, a former Google employee, heads Litecoin. He is also transparent in his dealings with Litecoin and is very active on Twitter.
Litecoin was Bitcoin’s second violin for a while, but in early 2017, things started to change. First, Litecoin was adopted by Coinbase along with Ethereum and Bitcoin. Later, Litecoin solved the Bitcoin problem by adopting Segregated Witness technology. This allowed him to reduce operating fees and do more. However, the decisive factor came when Charlie Lee decided to focus all his attention on Litecoin and even left Coinbase, where he was the Director of Engineering, only for Litecoin. Because of this, the price of Litecoin has risen in the last few months, and its strongest factor is the fact that it can be a real alternative to Bitcoin.
Vitalik Buterin, a superstar programmer, thought of Ethereum, which can do everything Bitcoin can. However, its goal is primarily to be a platform for creating decentralized applications. Blockchains are where the differences between the two come into play. Basically, Bitcoin’s blockchain indicates the type of contract that indicates whether funds have been transferred from one digital address to another. However, there is a significant extension with Ethereum because it has a more advanced language script and a more complex, wider scope of application.
As developers began to see its better qualities, projects began to sprout on Ethereum. Some have even raised millions of dollars through token crowd sales, and this is still a trend that continues to this day. Being able to build beautiful things on the Ethereum platform makes it almost like the internet itself. This has led to a sharp rise in prices, so if you buy Ethereum for a hundred dollars earlier this year, it will not cost about $ 3,000.
Monero aims to address the issue of anonymous transactions. Even if the currency is seen as a way to launder money, Monero aims to change it. Basically, the difference between Monero and Bitcoin is that each Bitcoin transaction has the feature of an open and registered transparent blockchain. With Bitcoin, anyone can see how and where money is transferred. However, Bitcoin has some imperfect anonymity. In contrast, Monero has a non-transparent, non-transparent method of operation. No one is completely sold this way, but Monero is here to stay because some people love privacy for any purpose.
Unlike Monero, Zcash also aims to solve the problems that Bitcoin has. The difference is that Monero is only partially public in blockchain style, rather than completely transparent. Zcash also aims to solve the problem of anonymous transactions. After all, not everyone likes to show how much money Star Wars spend on souvenirs. So the bottom line is that this type of cryptocurrency really has an audience and demand, although it’s hard to say which cryptocurrency, which focuses on privacy, will end up on top of the stack.
Also known as a smart token, Bancor is a new generation standard for cryptocurrencies that can store multiple tokens in reserve. In particular, Bancor seeks to facilitate the trading, management and creation of tokens by increasing their liquidity and allowing them to have an automated market value. Currently, Bancor has a product on the 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 short, the Bancor protocol allows the discovery of an internal price and liquidity mechanism for smart contract labels through an innovative reserve mechanism. Through a smart contract, you can immediately cancel or purchase any tokens that Bancor has in stock. With Bancor, you can easily create new cryptocurrencies. Who doesn’t want that now?
Ethereum’s other competitor, EOS, promises to solve Ethereum’s scale problem with a more robust set of tools to create and run applications on the platform.
An alternative to Ethereum, Tezos can be consensually improved without much effort. This new blockchain is decentralized in the sense that it is self-governing by creating a digital real union. It simplifies a mathematical technique called formal verification and has the security-enhancing properties of the most financially sensitive, sensitive contract. Definitely a big investment in the coming months.
It is very difficult to predict which Bitcoin will be the next superstar on the list. However, when it comes to cryptocurrencies, user acceptance has always been one of the key success factors. Both Ethereum and Bitcoin have this, and although there is a lot of support from those who adopted each of the cryptocurrencies on the list early on, some have yet to prove their resilience. However, these are the ones that need to be invested and focused on in the coming months.