Top 6 competitors of Bitcoin

What is Bitcoin?

This is a question most people new to the concept struggle to bind around their heads.

Bitcoin is a form on currency known as cryptocurrency and is also referred to as digital currency and is not seen traditionally.

Cryptocurrencies are not valued by any government, asset or bank, however, they are currencies all similar to the traditional currencies, since they can be used to buy and sell products and services online.

Aside from bitcoin, there are many other cryptocurrencies on the web.

Though they are not as popular or valuable, they are easier to mine and are a bit more stable.

Today we will look at some of the other popular cryptocurrencies of the digital currency market.

There are well over one thousand cryptocurrencies aside from Bitcoin.

Most are inconsequential; however, today we will have a look at some of the major competitors of the Bitcoin, they are as follows:

  • Ethereum (also known as ETH)
  • Litecoin (also known as LTC)
  • Bitcoin Cash (also known as BCH)
  • Ripple (also known as XRP)
  • Dash (also known as DASH)
  • Monero (also known as XMR)

Ethereum:

Ethereum currency that is based on decentralized cloud computing so that applications can process through computer clusters across the world. The demand for Ethereum has grown significantly over the years, that it can even bring challenge to the Bitcoin’s market capitalization.

Litecoin:

It is the second cryptocurrency of the world after Bitcoin, and started back at 2011. The transactions of Litecoin are more efficient relative to Bitcoin. It’s a solid and more stable alternative to Bitcoin, with team(s) who are continuously working to bring improvements over time.

Bitcoin Cash:

It was developed to have a larger block chain volume for transactions to process more efficiently and effectively. Bitcoin Cash has the potential to, someday, overtake Bitcoin.

Ripple:

Ripple’s focus is to collaborate with financial institutions and businesses around the world that are trying to achieve faster and more cost-effective ways for currency exchange. Transactions are marginally faster to process than any other cryptocurrencies, and only negligible percentage are paid as fees for the block chain transactions.

Dash:

It is meant to focus only on privacy and anonymous digital currency transactions. It runs decentralized networks that are configured to ensure that the transactions are next to impossible to trace.

Monero:

It is a highly secure and private cryptocurrency specialized in clearing any tractability, which uses a special technique where groups of signature are generate where only one is real and the other ones are decoy.

People are looking for the next cryptocurrency that will have higher value, but how do you evaluate alternative cryptocurrencies that may rival the Bitcoin?

Market capitalization is the main measure that analysts currently use to assign value to digital currencies.

This is a potentially good way to evaluate the interest there is in a particular cryptocurrency at any given time and how it compares to the Bitcoin’s market capitalization.

It is only a matter of time when they compete vigorously with each other and eventually exceed even the great Bitcoin itself.

Author:

MagForex has been actively trading Forex since 2008 and up until today, he is still very active in Forex and added Bitcoin and other Cryptocurrency pairs in his trading portfolio.