There are several types of cryptocurrency. However, some may have more potential for growth. Let’s get a feel of which cryptocurrencies have a future.
Bitcoin is the original Crypto, launched in 2009. It was when bitcoin came out that the whole cryptocurrency movement began. Its initial goal was to function as an alternative to the fiat system. The founder Satoshi Nakamoto argued that the fiat monetary system controlled by banks and financial institutions leads to social and economic difficulty and that Bitcoin solves this problem. The peer-to-peer blockchain technology of Bitcoin doesn’t require financial institutions to function.
Ethereum is the second most popular cryptocurrency. Even though it’s second in line after Bitcoin, they stand alone and have their differences. We shouldn’t confuse the two names people use for Ethereum. Ethereum is the name of the blockchain system, and Ether is the name of the cryptocurrency. Ethereum is the blockchain platform that processes smart contracts. As discussed earlier, Bitcoin came about as an alternative to fiat currencies. However, the purpose of Ether is to pay for the use of the platform, Ethereum and as an asset. It is a utility cryptocurrency.
Ripple, similar to Ethereum, is another utility coin. The blockchain platform can efficiently perform cross-border transfers of fiat currency. Several banks support it, and this form of Crypto is the ‘establishment’ cryptocurrency. Many transfer services have used the Ripples platform, which has only grown bigger since its launch. The chances of becoming part of the traditional financial system are possible at its success rate.
Litecoin serves as another fiat alternative and a leading rival for Bitcoin. The creators of Litecoin are hoping it’ll eventually be an everyday payment method. It is a more practical option compared to Bitcoin. Being that transactions are completed significantly faster than on the Bitcoin platform. In theory, this can lead to Litecoin becoming the more attractive Crypto for merchants. However, with ‘real-world’ cryptocurrency transactions still highly restricted, Bitcoin’s better established ‘brand’ maintains it well ahead of the pack. It is the fiat alternative cryptocurrency of choice.
NEO is similar to Ethereum because it is a smart contract. Once it was out for public use in 2014, it aimed to improve Ethereum by providing services through more sophisticated blockchain technology. Although people believe NEO is a more technically advanced platform than Ethereum, like Litecoin and Bitcoin. The latter’s more established position has helped it maintain a bigger following.
IOTA is a unique cryptocurrency built on the Directed Acrylic Graph structure. It works with the Internet of Things devices (IoT). IoT performs transactions without a cost by the use of connected devices, and this helps maintain data integrity. However, it has climbed to the top of the list of most used cryptocurrencies in recent years and seems to be only going upwards.
Tether is a cryptocurrency with tokens issued by Tether Limited, owned by Bitfinex. It is under the category of a stablecoin because it is built to always be worth $1.00, with $1.00 in reserves for every Tether minted.
A public blockchain platform working under a proof of stake network. Cardano is a peer-to-peer transaction platform established by Ethereum co-founder Charles Hoskinson in 2015.
Dogecoin is a cryptocurrency created by two software engineers, Billy Markus and Jackson Palmer. It started as a joke at the time, mocking cryptocurrencies. However, today people use it as a legitimate investment prospect.
Binance Exchange issued Binance Coin. Initially run on the Ethereum blockchain, it has become the native coin representing the Binance chain.
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