Valuations with cryptocurrencies have become pompous which explains why investors are investing in millions.
Prices have plummeted and even the cryptocurrencies which once had no intrinsic value are now worth hundreds of millions.
The major player, Bitcoin, hailed as the “king of cryptocurrencies” has a market cap now amounting to $65 billion. This has set the bar and ushered everyone into the bitcoin rush that is built on blockchains or a decentralized platform working on peer-to-peer networks. While critics would argue that it is a financial asset merely based on media or people’s perception, experts on cryptocurrency would state as-a-matter-of-factly that it’s actually a property. Bitcoin is in many ways like gold. Although gold is a physical asset it is also a property and behaves like a financial asset
Bitcoin has become the benchmark for all other established and emerging cryptocurrencies in the market. Other cryptocurencies are relatively easier to mine than bitcoin but pose greater risks due to it having lesser liquidity as well as low value and acceptance.
Most Used and Top Cryptocurrencies Online
- Bitcoin (BTC). Being the “cryptocurrency that started it all”, this comes first on the list. The king of cryptpocurrency certainly holds the highest post in the value chain. This was founded in 2009 by an individual under the alias of Satoshi Nakamoto. Bitcoins are used to purchase goods and services anonymously without middle men or banks. It’s still pending regulation so it’s cheaper or has zero fees. Bitcoin prices have also surged high and is almost as valuable as gold at the current value of $1,242.
- Ethereum (ETH). This is coined as the “king of blockchains” and is the most popular digital currency secondary to bitcoin. Started in 2015, this decentralized electronic cash system allows Smart Contracts as well as Distributed Applications. Ethereum can redefine the world as it is known today with the endless possibilities that the blockchain technology has to offer.
- Referred as XCoin or Darkcoin, this digital cash is said to be user-friendly and fast. This is a decentralized peer-to-peer system that offers security and anonymity in transactions because it works with Masternodes that makes transactions speedy, private, and decentralized. This was introduced in January 2014 and had a huge following that made it really popular with traders and miners.
- Launched in 2016, this decentralized cryptocurrency offers selective transparency, security, and privacy in every transaction. Everything is recorded on a blockchain with the recipient, sender, and amount left anonymous. This provided users with shielded transactions and higher levels or layers of protection and privacy.
- Ripple (XRP). Released in 2012, this cryptocurrency also functions as a digital payment protocol also known as XRP. The system operates on a chain of trust as exchanges can be done in any currency. This provides low-cost and instant international payments. Ripples operate on a consensus ledger which doesn’t require mining. Ripple is more focused on the importance of incentivizing those who distribute and add to the value chain. This currently has a total value of $26 billion.
Is there a bubble in the way cryptocurrencies are behaving today? With the huge increase in the combined market cap of bitcoin and ether plus all other cryptocurrencies going up, this definitely suggests a boom than a bubble.