Cryptocurrency guideline: promising altcoins 2018
Over the last year, Bitcoin price grew by more than 14 times, surpassing the mark of $20 thousand on December 17. As a result, the total market capitalization of Bitcoin has exceeded $336 billion. This figure outperforms even the GDP of Ireland and South Africa.
Success of Bitcoin inspired developers to inflate the market with various cryptocurrencies, hoping to repeat its destiny. That’s how altcoins emerged. What are altcoins? They are all other cryptocurrencies except Bitcoin.
How do altcoins differ from Bitcoins?
Bitcoin, some altcoins are traded on online exchanges and used to pay for goods and services. However, many of them offer users different technological innovations capable of solving specific issues, which Bitcoin lacks.
For instance, Bitcoin Cash allows processing a big number of transactions at a time, saving time and money.
Ethereum provides unlimited opportunities for work with smart contracts. Developers offer to use Ether not only as a monetary means but also for exchange of resources or registration of deals involving assets.
Ripple was designed for use by banks and other institutions, to increase the speed and reduce the cost of international money transfers. Such banks as Mitsubishi UFJ Financial Group, Bank of America, and Credit Agricole are implementing the technology; American Express has also announced partnership with RippleNet.
Such altcoins as Monero or Dash provide users with advanced level of anonymity when running transactions. While operations involving ordinary cryptocurrencies can be tracked in blockchain, here one can see only the initial and final balance in accounts, with no data on the movement of funds available.
The first after Bitcoin
According to CoinMarketCap.com, there were 1574 altcoins as for April 19. Their total market capitalization exceeds $339 billion.
The first altcoin Namecoin appeared in 2011. Its mission is the decentralization of the registration of domain names, which would complicate the state censorship on the Internet. Namecoin price depends on demand, and issuance is controlled by users that store the transaction database on PC. Currently, its capitalization equals to $25 million.
Namecoin network is almost impossible to crack. Hackers would have to outstrip its computational capabilities, which would cost them billions of dollars. Hackers could also shut down the work of Internet providers, but as the coin is used in many countries, the task is hardly possible to fulfil.
Main rivals of Bitcoin
Bitcoin is still the gold standard of cryptocurrencies, but a growing number of altcoins are gradually establishing themselves in the cashless world.
The main rivals of Bitcoin and the most promising altcoins in 2018 are coins with the highest market capitalization: Ethereum ($52 billion), Ripple ($28 billion), Bitcoin Cash ($15 billion), and Litecoin ($7 billion).
Experts explain their popularity mainly with trust in the crypto community. Each of these projects has a big team of developers and enthusiasts and is presented on most of crypto exchanges.
The main factors that make altcoins attractive for investors are their low price and reduced transaction costs as compared to Bitcoin. Most of users, that cannot afford buying Bitcoin ($8 thousand), consider investing in altcoins as a better alternative to increase their capital. For instance, the current price of Ethereum is $533, Bitcoin Cash – $887, Litecoin – $140.
Investment in altcoins depends on their application area. Crypto enthusiasts often opt for projects that work on the infrastructure of distributed ledgers and improve the transaction quality.
NEO is one of the currencies that support the infrastructure of the crypto economy. Three elements are realized in the project’s technology: a platform intended for smart contract execution, digital assets, and digital identity.
The NEM network can run 4 thousand transactions per second. The main peculiarity of the platform is blockchain integration in the existing corporate networks.