Cryptocurrency is gaining attention more than ever. When we think about cryptocurrency, Bitcoin is the first thing that comes to our mind. There are more than thousands of other cryptocurrencies. This blog gives a brief overview of Bitcoin and other cryptocurrencies.
Bitcoin and other cryptocurrencies:
Bitcoin:
Developed by someone or a group of people under the pseudonym Satoshi Nakamoto, Bitcoin is the most popular cryptocurrency. Ever since its inception Bitcoin has been the main driving force of the crypto market. Bitcoin is, in fact, one of the first digital currencies to use the peer-to-peer technology. Developed in 2009, Bitcoin has been in the spotlight for investment. Bitcoin is that cryptocurrency which everyone wants to invest in. With a cap of 21 million coins, Bitcoins are protected from inflation and deflation. Bitcoin is the most sought-after cryptocurrency for having the highest market capitalization.
Ethereum:
Following Bitcoin, Ethereum is the second largest cryptocurrency in the market. Ethereum also runs on a unique technology which sets it apart from the rest of the cryptocurrencies. Ethereum’s network was the first one to set in motion smart contracts. There are other altcoins present in the cryptocurrency market which are built based on the Ethereum network. Being used by DeFi applications is also adding to Ethereum’s importance. All of these factors as well as with its market value, Ethereum is grabbing investors’ attention.
Dogecoin:
Although Dogecoin was created as a joke in the year 2013, it has become a potential investment choice now. Dogecoin was created by Jackson Palmer and Billy Markus. A meme coin initially created to mock the cryptocurrency system has now become one of the popular cryptocurrency investment options. Dogecoin can be exchanged for other cryptocurrencies and used to buy products and services online. Being one of the cheapest cryptocurrencies, Dogecoin is a viable investment option for many. Elon Musk’s enthusiasm for Dogecoin has also made the meme coin a talking point.
Tether:
Tether being pegged to the US dollars makes it a stablecoin. A pegged cryptocurrency is a crypto who’s value has been linked to some other medium of exchange such as gold or traditional currency. Stablecoins are special cryptocurrencies and Tether is the best stablecoin. A stablecoin’s value fluctuates marginally. From the investors’ perspective stablecoins are the best investment option since they have advantages of both blockchain and native currencies. Tether’s consistency in value is the reason for its high demand. As a stable investment option Tether is the best choice. Tether is one such cryptocurrency which has been built based on the Ethereum network.
Binance Coin:
Binance Coin was launched by Binance exchange in 2017. Binance exchange is the largest and most reputed cryptocurrency exchange. Investors have great hopes for Binance Coin. Since it will maintain its value and importance as long as Binance exchange is active. Binance Coin has gained market value over time. So, it has been of profit for those who had invested early and had held onto it patiently.
Cardano:
Founded by Ethereum’s co-founder Charles Hoskinson, Cardano was released in the year 2017. Cardano seems to be one of the best performing cryptocurrencies and is comparatively stable in the unstable crypto market. Cardano’s platform has been built for real world applications which gives it an edge over other cryptocurrencies in the market. Its platform can be of use to healthcare, retail, finance and education sector. Cardano’s company declared that Cardano’s blockchain technology will be used to revolutionize Ethiopia’s education system. Its technology will be used to create a secure system for storing information about millions of students in the region. This is one such potential application of Cardano’s platform. These applications contribute to the market value of Cardano.
XRP:
XRP has been created by and is the cryptocurrency of a company called Ripple. Ripple is a blockchain-based digital payment network for financial transactions. Ripple as a platform is used for money transfer between any traditional currency or cryptocurrency. As a global payment network, Ripple uses its own crypto XRP for rapid conversion between different currencies. With the fastest speed for global transactions, XRP is known as the fastest digital asset. Ripple does not use the blockchain mining to verify transactions. Instead, it uses a consensus mechanism via a group of bank-owned servers to verify transactions. Ripple transactions are confirmed in seconds and use lesser energy and time compared to Bitcoin’s transactions. XRP is one of the most in-demand cryptocurrencies by market capitalization.
Polkadot:
Ever since 2020, Polkadot has come into the limelight and seems to be a promising cryptocurrency for investment. Polkadot as a platform connects multiple specialized blockchain into one network to utilize their special features while merging their security. The central chain is responsible for the security while the side chains work to increase the capacity of the network. The different blockchains function in perfect synchronization. A next-gen blockchain network with several advantages over the previous ones. By giving its user all the control, Polkadot targets at complete decentralization. The market value of Polkadot is increasing and is expected to grow further, making it a lucrative investment option.
USD coin:
USD coin, built on the Ethereum blockchain, is also a stablecoin. Like Tether, USD coin is pegged to the US dollars. The purpose of USD coin is to allow the use of US dollars over the public blockchains. Compared to other cryptocurrencies stablecoin’s value fluctuates very little. Being a stablecoin USD coin has the advantage of both cryptocurrency and traditional currency. USD coin is traded at the value of 1 US dollar. USD coin can be changed back to the US dollar at any moment.
Bitcoin Cash:
Created in 2017, Bitcoin Cash is the fork of Bitcoin. The purpose of creating Bitcoin Cash was to fit in more transactions into a single block. In order to overcome the scalability problem of Bitcoin, the block size of Bitcoin Cash was increased. Thus, ensuring processing of more transactions per block. Bitcoin Cash is cheaper than Bitcoin and is faster to use. Both Bitcoin and Bitcoin Cash are capped at 21 million coins. Bitcoin Cash can probably be a good investment option. It is crucial to remember that Bitcoin Cash has all the market volatility of a cryptocurrency associated with it.