The value of bitcoin has risen this year, even exceeding one ounce of gold. There are also new cryptocurrencies on the market, which is even more amazing, with the value of cryptocurrencies reaching over one hundred billion. On the other hand, the long-term outlook for cryptocurrency is somewhat vague. There are disputes over the lack of progress among its core developers, which make it less attractive as a long-term investment as a payment system.
Still, the most popular bitcoin is the cryptocurrency that started it all. It is currently the largest market capitalization – about $ 41 billion – has existed for the last 8 years. Bitcoin is widely used all over the world, and it is still not easy to use the weakness in its current method. Both as a payment system and as a stored value, Bitcoin allows users to easily receive, send and receive bitcoins. The concept of blockchain is the basis on which bitcoin is based. You need to understand the concept of blockchain to understand what cryptocurrencies are all about.
In simple terms, a blockchain is a database distribution that holds each transaction on the network as a piece of data called a “blockchain”. Every user has copies of the blockchain, so when Alice sends 1 bitcoin to Mark, everyone on the network knows it.
One of the alternatives to Bitcoin, Litecoin tries to solve many problems that keep Bitcoin. It is not as flexible as Ethereum in terms of value, which is largely due to strong user acceptance. It should be noted that Charlie Lee, a former employee of Google, runs Litecoin. He is transparent with everything he does with Litecoin, he is quite active on Twitter.
Litecoin has long been Bitcoin’s second violin, but things started to change in early 2017. First, Litecoin was adopted by Coinbase along with Ethereum և Bitcoin. Next, Litecoin fixed the Bitcoin issue by adopting Segregated Witness technology. This allowed him to reduce transaction fees and do more. However, the deciding factor was when Charlie Lee decided to focus solely on Litecoin, even leaving Coinbase, where he was chief engineering officer, for Litecoin only. As a result, the price of Litecoin has risen in recent months, with the strongest factor being that it could be a real alternative to bitcoin.
Superstar developer Vitalik Buterin has thought of Ethereum, which can do everything Bitcoin can. However, its purpose is primarily to be a platform for creating decentralized applications. Blockchains are where the differences between the two are. Basically, a Bitcoin blockchain records a type of contract that indicates whether funds have been transferred from one digital address to another. However, there is a significant extension to Ethereum as it has a more advanced language script և a more sophisticated, wider range of applications.
Projects began to sprout on top of Ethereum as developers began to notice its better qualities. Some have even raised millions of dollars through the sale of the token crowd, a trend that continues to this day. The fact that you can build great things on the Ethereum platform makes it almost the same as the Internet. This led to a sharp rise in prices, so if you had bought Ethereum for a hundred dollars earlier this year, it would not have been valued at almost $ 3000.
Monero aims to resolve the issue of anonymous transactions. Even if this currency was perceived as a method of money laundering, Monero intends to change it. In essence, the difference between Monero and Bitcoin’s is that Bitcoin stands out with a transparent blockchain for each publicly registered transaction. With Bitcoin, anyone can see where the money went. However, there are some imperfect anonymities about bitcoin. In contrast, Monero has a non-transparent, non-transparent transaction method. No one sells this method very well, but since some people love privacy for any purpose, Monero will stay here.
Unlike Monero, Zcash also aims to solve the problems that Bitcoin has. The difference is that instead of being completely transparent, Monero is only partially public with its blockchain style. Zcash aims to solve the problem of anonymous transactions. After all, not everyone likes to show how much money they actually spent on Star Wars souvenirs. So the bottom line is that this type of cryptocurrency really has an audience, a demand, and it’s hard to say which cryptocurrency that focuses on privacy will eventually come out on top of the pile.
Known as the “smart sign”, Bancor is the standard for a new generation of cryptocurrencies that can hold more than one token in reserve. Bancor mainly tries to facilitate trading, manage, create tokens by increasing their liquidity, allowing them to have an automated market price. Bancor currently has a product that includes wallet և smart sign creation. There are also features in the community, such as statistics, profiles, and discussions. In short, the Bancor protocol makes it possible to discover built-in prices, such as the liquidity mechanism of smart contracts, through the innovative backup mechanism. With a smart contract, you can instantly liquidate or buy any token in Bankor’s reserve. With Bancor you can easily create new cryptocurrencies. Who would not want that now?
Another competitor to Ethereum, EOS, promises to address the scale of Ethereum by providing a range of tools that will run more powerfully to build applications on the platform.
As an alternative to Ethereum, Tezos can be updated by mutual agreement without much effort. This new blockchain is decentralized in the sense that it is self-governing through the creation of real digital collaboration. It simplifies a mathematical technique called formal verification; it has security-enhancing features for a more financially sound, sensitive smart contract. Definitely a big investment in the coming months.
It is incredibly difficult to predict which Bitcoin will become the next superstar in the list. However, user acceptance has always been a 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 on the list, some still have to prove their worth. However, these are the ones to invest in and beware of in the coming months.