This year, the value of Bitcoin has skyrocketed, even exceeding one ounce. There are also new cryptocurrencies on the market, which is even more surprising, which makes the value of cryptocurrencies as high as hundreds of billions of dollars. On the other hand, the long-term outlook for cryptocurrencies is a little fuzzy. There are disputes among its core developers, which makes it less attractive as a long-term investment and payment system.
The most popular thing is that Bitcoin is the cryptocurrency that started all Bitcoin. It is currently the largest market capitalization at approximately $41 billion and has been in existence for the past 8 years. Bitcoin has been widely used all over the world. So far, it has not been easy to take advantage of the weaknesses in its working methods. Bitcoin serves both as a payment system and as a stored value, enabling users to easily receive and send Bitcoin. The concept of blockchain is the foundation of Bitcoin. It is necessary to understand the concept of blockchain to understand the full meaning of cryptocurrency.
In short, blockchain is a database distribution that stores each network transaction as a data block called a “block”. Every user has a copy of the blockchain, so when Alice sends 1 Bitcoin to Mark, everyone on the network knows.
Litecoin is an alternative to Bitcoin. It attempts to solve many problems that hinder Bitcoin’s devaluation. Its value is not as flexible as Ethereum, and its value mainly comes from stable users. It is worth mentioning that former Googler Charlie Lee leads Litecoin. He also uses Litecoin for transparency exercises and is very active on Twitter.
Litecoin has been Bitcoin’s second fiddle for quite a while, but things started to change in early 2017. First, Litecoin is adopted by Coinbase as well as Ethereum and Bitcoin. Next, Litecoin solved the Bitcoin problem by using segregated witness technology. This gives it the ability to reduce transaction fees and do more. However, the decisive factor was that when Charlie Lee decided to devote all his energy to Litecoin, he even left Coinbase, where he was the engineering director of Litecoin. Therefore, the price of Litecoin has risen in the past few months, and the strongest factor is that it may be a real substitute for Bitcoin.
Superstar programmer Vitalik Buterin thought of Ethereum, which can do everything that Bitcoin can do. However, its main purpose is to become a platform for building decentralized applications. Blockchain is the difference between the two. Basically, Bitcoin’s blockchain records a type of contract that indicates whether funds have been transferred from one digital address to another. However, because Ethereum has more advanced language scripts and has a more complex and wider range of applications, it has been greatly expanded.
When developers started to notice its better quality, the project began to germinate on top of Ethereum. Through symbolic crowd sales, some people even raised millions of dollars in funds, which is still a continuing trend to this day. The fact that you can build wonderful things on the Ethereum platform makes it almost like the Internet itself. This causes the price to skyrocket, so if you bought one hundred dollars worth of Ethereum earlier this year, it would be worth nearly $3,000.
Monero aims to solve the problem of anonymous transactions. Even if people think that this currency is a method of money laundering, Monero intends to change this situation. Basically, the difference between Monero and Bitcoin is that Bitcoin has a transparent blockchain, and every transaction is public and recorded. With Bitcoin, anyone can see how and where money is transferred. However, the anonymity on Bitcoin is somewhat imperfect. In contrast, Monero has an opaque rather than transparent transaction method. No one can sell well this way, but since some people like privacy for any purpose, Monero will stay.
Like Monero, Zcash is also committed to solving Bitcoin’s problems. The difference is that Monero is not completely transparent, but only partially disclosed in its blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, no one likes to show how much “Star Wars” actually spent on souvenirs. Therefore, the conclusion is that this type of cryptocurrency does have an audience and demand, although it is difficult to point out which cryptocurrency that focuses on privacy will eventually stand out.
Bancor, also known as “smart token”, is a new generation of cryptocurrency standard that can hold multiple tokens. Basically, Bancor tries to simplify the process of trading, managing and creating tokens by increasing its liquidity level and allowing it to have automated market prices. Currently, Bancor’s front-end products include the creation of wallets and smart tokens. There are also some functions in the community, such as statistics, personal information and discussions. In short, the Bancor protocol can discover the built-in price and the liquidity mechanism of smart contract tokens through an innovative reserve mechanism. Through smart contracts, you can immediately liquidate or purchase any tokens in Bancor’s reserves. With Bancor, you can easily create new cryptocurrencies. Who doesn’t want it now?
Another competitor of EOS, EOS promises to solve the expansion problem of Ethereum by providing a set of more powerful tools for running and creating applications on the platform.
Tezos can replace Ethereum and can be upgraded without spending too much effort. This new blockchain is decentralized because it achieves autonomy by establishing a digital real federation. It promotes a mathematical technique called formal verification, and has the security-enhancing function of smart contracts that have the largest financial trade-offs and are the most sensitive. Definitely a huge investment in the coming months.
It is difficult to predict which Bitcoin on the list will become the next superstar. However, when adopting cryptocurrencies, user adoption has always been one of the key factors for success. Both Ethereum and Bitcoin have this feature, and even though early adopters of each cryptocurrency on the list have provided a lot of support, there are still some who have yet to prove its staying power. Nonetheless, these are tools to invest in and beware of in the coming months.