By In 2008, Satoshi Nakamoto wrote a paper declaring the intention to launch peer-to-peer electronic cash. The next year, Bitcoin software came to the world and with it the world of cryptocurrencies. For the last decade, cryptocurrency has become a buzzword. Both in commerce and investment circles, there’s a lot of hype around cryptocurrency and for many good reasons. For most people, Bitcoin is the only cryptocurrency worth mention, yet there are thousands of alternative cryptocurrencies ( Altcoins ) available.
If you have an interest in learning about cryptocurrencies, you need to look beyond Bitcoin.
There’s no denying the dominance of Bitcoin among cryptocurrencies. From 2013 to the first quarter of 2019, the Bitcoin market capitalization increased from 1.02 billion U.S. dollars to over 205.40 billion U.S. dollars. However, there are over 1600 other peer-to-peer currencies available online.
Altcoins in Brief
With the demand for Bitcoin growing across the world, it is now harder to buy these units or trade in them. As more advanced technologies evolve, alternative cryptocurrencies to Bitcoin now called altcoins have grown in popularity for several reasons.
They offer the same benefits as Bitcoin, including safer and quicker online transactions, anonymity and security in transactions, reliability, and autonomy from any government.
They are also cheaper, readily available, and have better security features than Bitcoin. Some altcoins also offer faster transactions and allow for larger total amounts of coins.
Most of these new virtual currencies have emerged to solve problems associated with Bitcoin, such as weak security. If you are after investing in cryptocurrencies, altcoins are the best option. They are similar to penny stocks where you invest a small amount and earn high returns over time.
The Top Altcoins on the Market
To help you understand other cryptocurrencies other than Bitcoin, here is a list of the most popular altcoins:
1. Ethereum (ETH)
This digital currency hit the market in 2015. It is the top cryptocurrency after Bitcoin worldwide. Ethereum is a decentralized peer-to-peer network based on the blockchain.
The platform allows for the creation of smart contracts a process which automatically executes a specified action when users meet all conditions.
Ethereum has emerged as a crucial component in crowdfunding by eliminating the middleman. Money transfer with this digital currency is faster than with Bitcoin, and its high market capitalization makes it a great investment.
2. Zcash (ZEC)
In 2016, Zcash (ZEC) hit the cryptocurrency world. This decentralized and open-source cryptocurrency offers an edge in terms of privacy and selective transparency of transactions. With more converts over the security of Bitcoin, the extra security offered by this altcoin is a relief for users.
3. Bitcoin Cash
This Bitcoin spin-off currency has gained popularity since its launch in 2017. After the success of Bitcoin, there were many disagreements between developers and miners. One concern in Bitcoin was the block size limit which many felt was too small.
Such disagreements eventually led to the launch of Bitcoin Cash, which tries to resolve problems that beset Bitcoin. This is the third-largest cryptocurrency in market capitalization.
Bitcoin Cash offers high transaction speeds and boasts a high market capitalization making it a popular investment choice.
4. Litecoin (LTC)
This is one of the earliest cryptocurrencies after Bitcoin. Based on an open-source global payment network, Litecoinuses “scrypt” as proof of work and has no centralized authority. With this digital currency, building blocks is faster than with Bitcoin. This ensures Litecoin offers faster transaction confirmation. It also enjoys high market capitalization.
5. IOTA
With the internet of things (IoT) finally a reality, the need for a medium of exchange that caters for this technology has emerged. IOTA suits the Internet of Things (IoT) and leverages a mathematical system known as Tangle.
This digital currency allows you to avoid transaction fees that still exist even with cryptocurrencies. It is for this reason that the developers chose to avoid the blockchain technology. The system used requires no mining and users can perform unlimited transactions in a short time.
Unlimited scalability is at the core of IOTA as it seeks to ensure as many internet users and electronic objects as possible participate in the network and carries out the transaction. Companies such as Bosch and Microsoft which have an interest in IoT have invested heavily in IOTA.
Other notable altcoins on the market include DASH, Ripple (XRP), Dash (DASH), Monero (XMR), Cardano (ADA) among others.
Conclusion
While Bitcoin still dominates the cryptocurrency market, there’s still room for the emergence of alternatives. Altcoins have come up to remedy the weaknesses that have appeared with Bitcoin.
Industry experts say the cryptocurrencies available today have not even scratched the potential for digital currencies. For instance, there’s no single currency suitable for everyday use.
If you have an interest in cryptocurrencies, you should not limit yourself to the dominant player on the market. Instead, you should look at the alternatives to Bitcoin and their features. As they say, information is power. You will gain crucial insight to help you make an informed choice on the best cryptocurrency to use.
Author
Shariq Toor
toorshariq@gmail.com
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