World’s Top 5 Virtual Currencies
- Bitcoin
- Ripple
- Ethereum
- Litecoin
- Zcash
A few years back, finance experts speculated on the survival of cryptocurrencies. Now, there are over 5,000 cryptocurrencies in the world with a collective market cap of over $150 billion. The debate now is on the extent of the evolution and adoption of this fintech invention. Despite concerns by industry skeptics and ‘bans’ by governments and companies, demand for virtual currencies soars, and with it, their prices. Here is a list of the five top virtual currencies whose futures look brighter than the rest.
Bitcoin
As expected, Bitcoin comes first on our list. It enjoys the first-mover advantage as the globe’s premier decentralized digital currency. As such, it is the most recognized and accepted peer-to-peer virtual currency in the world. Although it is the most expensive cryptocurrency on the market, it allows investors to buy in small fractions known as Satoshi (named after the inventor). Bitcoin boasts a proven security protocol and more liquidity than its younger counterparts. With more software and implementations, Bitcoin also claims a larger developer ecosystem than the rest. It is also the most accessible cryptocurrency with trusted merchants such as:
- Coinbase (a popular wallet and a Bitcoin vendor)
- Xapo (a respected vendor and a renowned Bitcoin cold-storage vault)
Ripple
Ripple debuted in 2012 with the desire to revolutionize the “slow, limited in transparency, and expensive” banking systems. It managed to deliver on their promises. As of January 2018, it became the world’s second largest cryptocurrency. Ripple includes a Global Payment System dubbed Ripplenet. It is a system that creates a global network of banks enabling them to settle cross-border payments in real time. Unlike Bitcoin and other Altcoins, its method of conformation does not require mining – a feature that minimizes network latency. Ripple’s success story started when they managed to get a huge number of major banks and financial institutions, and the list grows by the day.
Ethereum
Ethereum came into existence in 2013. It is a decentralized system that provides a virtual machine which executes scripts using a network of public nodes. It is a platform built for smart contracts and features programmable applications that run without any chance of:
- censorship
- fraud
- third-party interference
The Ethereum Wallet gives users access to the Ethereum blockchain. It does this by allowing them to use, write, and deploy smart contracts, as well as hold and secure ether and other Euthereum-based crypto-assets. Although its growth was negligible in the past few years, recent developments and improvements are igniting new interest in the product.
Litecoin
Launched in 2011, Litecoin is among the initial cryptocurrencies, and was often referred to as the ‘silver to Bitcoin’s gold.’ Finance aficionados, such as the Business Insider, consider Litecoin as one of the alternatives to Bitcoin – collectively called Altcoins. Litecoin says that it is a worthy complement to the industry leader. All in all, there is no disputing that Litecoin gives most cryptocurrencies a run for their money. It has a faster block generation rate which makes for a faster transaction confirmation and a higher transaction volume. It also enjoys:
- substantial industry support
- liquidity
- trade volume
It is as independent as a virtual currency can get with a proven open source payment software. Its biggest selling point is that it provides near-zero payment fees to anyone in any part of the world.
Zcash (ZEC)
Zcash advertises itself as the ‘permissionless’ cryptocurrency that uses zero-knowledge cryptography. It uses a zk-SNARK, a zero-knowledge proof construction, to maintain absolute anonymity behind any transaction. That means that it is not possible to decipher the amount or the parties involved in any given transaction. The only thing disclosed or published on the blockchain is that a transaction happened at a specific point in time. Its advanced cryptographic technique completely ‘shields’ Zcash owners from prying eyes. Perhaps, that is why the company claims that “if Bitcoin is HTTP for money, then Zcash is https.”
Concluding Thoughts
As much as Bitcoin continues to dominate the industry, newer cryptocurrencies are slowing taking huge bites from its market shares. Its surging price is also a limiting factor for most investors who opt for the more affordable weaning products. Ripple and Ethereum are are also making a name for their effort to provide enterprise solutions. They are, therefore, curving a totally different path for themselves. Zcash has a promising future in a world of paranoid shoppers. Litecoin’s speed and huge transaction volume give it an advantage over the rest. However, one thing is clear: cryptocurrencies are here to stay.
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