Despite being the subject of a third decline in value last October, Bitcoin has managed to climb its way up to nearly $14 000. This has caused a frenzy on all levels. Although it is one of the most popular crypto-currencies, it is not the only one out there.
What other crypto-currencies are available? How are they evolving in comparison? And if this is a real revolution to embrace for some, for others this is only a bubble that is bound to pop.
The 6 Dominant Crypto-Currencies
This is the most popular type of crypto-currency and is even sometimes compared to gold in terms of its value. It was created in 2008 by Satoshi Nakamoto and saw its actual advent in 2009. Like most crypto currencies, its operation is based on a secure coding technology called blockchain. This technology ensures the security of encrypted currency transactions, much like a conventional account book. It should also be noted that there is a limited number of Bitcoins in circulation and after 2140, no more Bitcoin will be created. At that moment, there is estimated to be about 21 million units of Bitcoins in circulation.
If Bitcoin is compared to gold, this encrypted currency is often equated with money. It was developed by Vitalik Buterin, a young Russian-Canadian computer scientist at the age 19 and was launched in July 2015. His idea is to offer the possibility of creating “smart contracts”. In fact, the blockchain of Ether, due to its coding, can act as a notary or a lawyer, amongst others. It acts kind of like a “trusted third party” in a transaction by quickly establishing, within just seconds, a contract without any margin for error, which is much more effective than any human being.
Litecoin was developped by Charles Lee, a former Google employee, who created this crypto-currency based on the open source code of Bitcoin. However, it has made an improvement to the blockchain by making transactions with Litecoin ultra-fast. Making this encrypted currency perfect to be used for daily transactions.
This crypto-currency was developed in 2015 and is not based on blockchain technology. It is used in the realm of the “Internet of Things” for instant transactions. There are no costs and no security. This was made possible thanks to Tangle. Its fully decentralized technology can be used in data transfer, the implementation of electronic votes or to encrypt e-mails.
This encrypted currency is also not based on the blockchain, but relies on “cryptonote” technology which allows it to offer anonymity to its users. Created in 2014, this cryptocurrency is best known for being adaptable, which means that it is designed to adapt to a future increase in transactions.
Developed by a Chinese named Da Hongfei, it is considered the alter ego of Ether. Its founder hopes that it can be used “… in different scenarios including a user interface just like with digital asset portfolios, forums, voting systems, profile management and mobile applications …”.
The 6 Dominant Crypto-Currencies
Amongst all these different types of crypto-currency, Bitcoin is the biggest, latest news. It has been oscillating around $14 000 and has nearly crested 117 000 Euros. Meanwhile, Ether sits at around $500, the Monero is at about $274, Litecoin about $100 and a single unit of NEO is only worth about $37.
As for the IOTA, within the last 24 hours, it has risen to more than 45% and then dropped back down to 30%.
Note that these values are in constant fluctuation. This is precisely the very volatile character of these crypto-currencies. Bitcoin is currently causing a lot of debate over the “bubble”, Some experts are saying that neither the general public or investors should rely on crypto prices because they run the risk of potentially massive losses.
For most critics, these digital currencies do not constitute a safe of stable investment since there is no control or regulatory organization to supervise them.
However, despite the experts who advocate caution, the public is open to the enticing promise of a trending crypto-currency.
“I invested a bit of money in bitcoin three months ago. I just wanted to see how it worked. And now I have multiplied my investment threefold. It’s crazy!” Says a sensible and cautious lawyer to a family that he works for and who are also looking forward to the recent $14 000 rise of Bitcoin.
This family made a gain of $ 2,500 thanks to this recent fluctuation of the crypto-currency. So much so, according to the Wall Street Journal, that “even grandmothers get into it”
Alexandre Hovette, Advisor for Financial Institutions, recognizes that Bitcoin is not a real currency, and makes the following statement: “It’s something new that’s hard to value.” However, according to him, Bitcoin has a real future.
According to Georges Ugueux, manager of an investment firm, “The bitcoin is a scam, it is based on wind and will cost fortunes to thousands of investors.”
He also states that a distinction must be made “Between blockchain technology which is a secure coding to which banks adhere, and Bitcoin, a virtual counterfeit, which is actually a vast fraud. “