As blockchain technology has developed over the past few years, cryptocurrencies have appeared on the scene and become a very interesting prospect for those involved in IT. They are a digital currency that is not tied to a country or a central bank, it is peer-to-peer, payments are instant and fees are minimal in most cases.
The idea of cryptocurrency was first proposed in 1998 by Wei Dai and since then, many different types have come into existence with Bitcoins being the most popular. There are actually hundreds of cryptocurrencies available now and more are introduced every day.
What cryptocurrencies will survive and thrive in the future? This is an informational blog about which technology will survive and thrive in the future. The main focus of this article is to answer that question because it is an important one for everyone interested in the world of cryptocurrencies to know about.
The first thing we need to know about these new technologies is what their purpose is. Cryptocurrencies were made as a way for people to transfer money without having any government involvement or banks involved at all. The currencies can be used anywhere in the world where there is access to internet because they work over networks called “blockchains”. This means that if someone wants send money from one country another, they don’t need any type of middleman
In order to make a judgement on which technologies will survive in the future, we have to look at where cryptocurrencies stand today. There are 2,000-2,500 cryptocurrencies online today with a total market cap of approximately $200 billion.
If you were to remove Bitcoin from the equation, the rest of the market cap would be around $80 billion. The entire cryptocurrency industry is still very small relative to its potential.
In order to understand what has changed since the last cryptocurrency bubble in 2017-2018 and why this industry is here to stay, we must first understand that there are three types of cryptocurrencies: utility tokens, security tokens and stable coins:
Utility Tokens: These are tokens that give users access to digital goods or services on a blockchain. An example is KIN (Kik) or Brave Browser’s BAT token.
Security Tokens: These are tokens backed by assets in the real world such as real estate or equity in a company. This can also include tokenized debt. RealT is an example of a security token backed by real estate.
Stable Coins: These are coins that are pegged to fiat currencies such as the US dollar, Euro or Yen. Tether (USDT) is one of the most well known stable coins
Today, there are over 1,500 cryptocurrencies on the market and at least 50 coins with a market cap of $1 billion. In terms of tech, the most prominent application of blockchain technology is in the cryptocurrency market. The top ten cryptocurrencies by market cap are:
Bitcoin Cash (BCH)
Binance Coin (BNB)
Bitcoin SV (BSV)
Bitcoin is the most well-known cryptocurrency in the world today. It was created in 2009 by a developer or group of developers who used the pseudonym Satoshi Nakamoto. It is an electronic payment system that uses cryptography to control its creation and transactions, rather than relying on central authorities. There is a cap on the total number of 21 million bitcoins that can be mined and so far, more than 18 million bitcoins have been mined. The last bitcoin will be mined in approximately 2140. Bitcoin has seen a massive surge in value of over 900% since January 2017 when it was trading at around $800 to now over $7,600 per coin today. Ethereum is a decentralized platform that allows for smart contracts
Bitcoin, Ethereum, Litecoin and other cryptocurrencies have been a hot topic in the media lately. The question is: what do you need to know before buying your first cryptocurrency? I’m going to explain all kinds of things you need to know before buying your first cryptocurrency. This is the ultimate guide to understanding cryptocurrencies.
The cryptocurrency industry is extremely young, and it’s hard to see what will happen in the next several years. But there are some cryptocurrencies that have shown a lot of success and potential, and there are others that have been less successful or just flat-out failed. I’ll get into each one below.
One of the most important things to note before we get started is that this article is not an endorsement or instruction to buy any one cryptocurrency. The decision to invest in any crypto asset is up to you.
Bitcoin was the first cryptocurrency, and it remains dominant; in fact, at the time of writing (April 2018), bitcoin’s market cap was over $100 billion USD with a price per coin of more than $6,500! It has pretty much everything going for it:
First-mover advantage – Bitcoin was the first cryptocurrency ever made, so it has all of the advantages that come with being “first.”
The most trusted – There are many large companies and governments around the world that accept bitcoin payments. This gives bitcoin legitimacy as a payment method and makes it more attractive to investors.
The largest network effect – Bitcoin has a huge network of miners and users, which grows every year. This makes it harder for someone to overthrow or
Then, in the 17th Century, tulips were introduced from Turkey. The Dutch fell in love with this flower and it became a status symbol to plant them in your garden. It was a sign of wealth and affluence.
In 1634 the first speculative commodity bubble occurred in history when the price of tulips sky-rocketed to incredibly high levels for no fundamental reason.
The Dutch had created a derivatives market for tulips where people could trade futures on bulbs as well as options on those futures. Forward contracts were also traded where people would agree on a certain price to be paid at some point in the future. These financial instruments were used to speculate heavily on the tulip market.
At its peak, people would sell everything they owned just to buy one single tulip bulb because they expected the price to keep going up forever. Just like hundreds of years later during the dotcom bubble in 1999, people believed that money could be made without any effort by just buying stocks and expecting their prices to rise indefinitely. People thought that everybody was going to get rich overnight and become millionaires just by owning shares of internet companies. It didn’t matter if those companies had any revenue or profit because it was clear that there was going to be “a paradigm shift” and ”
“There are three kinds of lies: lies, damned lies, and statistics.”
– Benjamin Disraeli
Cryptocurrencies have been all the rage for quite some time now. Bitcoin has been around for more than 10 years and has become so popular that there’s even a TV show about it now – ‘Silicon Valley.’ Other crypto tokens like Ethereum, Ripple and Litecoin have also picked up steam in terms of awareness and popularity. But what exactly are these cryptocurrencies? What is their value proposition? And how can we tell which coin is going to be king?
Well, there’s no simple answer to that question. There are lots of factors at play here, not the least of which is speculation on the part of the investors who prop up these alt coins. There are also things like hype and FOMO (fear of missing out) that drive the market. But if you look at the fundamentals, some coins are simply better designed than others.
And sometimes a coin will have a tonne of speculative value but when you look at its underlying technology, it’s clear that it’ll never survive long term. Let’s take a look at some examples…