The best cryptocurrencies may be subjective to opinion. Cryptocoins are hotly debated. Some people love Bitcoin and other’s think it is headed for the graveyard.
In 2009, when Bitcoin launched, people were fast to welcome the benefits it had over common government regulated cash. Because Bitcoin paved the original trail, it suffers from fundamental weak points.
Thousands of bitcoin alternatives and other cryptocurrencies were developed to fix Bitcoin’s weaknesses.
Personal opinions aside, in the midst of thousands of digital currencies, there are some clear giants at play in the cryptoworld.
Best 10 Altcoins To Be Watching
- Bitcoin Cash – A spit was placed in Bitcoin and Bitcoin cash hit the market. Offers advantages such as being cheaper and faster than Bitcoin.
- Ether – a currency used only to power the Ethereum blockchain. Litecoin – Cheaper and faster than Bitcoin.
- XEM – This provides asset creation and a peer-to-peer payments.
- Ripple (XRP) – centered on worldwide payments (for financial institutions) that are fast.
- Monero (XMR) – Said to be the best digital currency for privacy. It offers complete anonymity.
- ADA – Mostly for Asian investors and smart contracts.
- Dash (DASH) – Just like its name implies, used for immediate transactions that are private.
- EOS – Said to be China’s counterpart to Ethereum.
- IOTA – A child of both blockchain technologies and Internet of Things.
At this very moment, more cryptocoins are being created and there’s more opportunity for cryptocoin investing. Most are run on Blockchain technology but their end goal will be different.
People are waiting to see what impact all these new currencies will have on Bitcoin. Will Bitcoin fold or will the founders create the needed changes to help Bitcoin evolve?
Why Are Altcoins Created?
To understand why people even thought to jump in to the race to create the next best Bitcoin, let’s consider the rules or flaws that Bitcoin operates under:
- Bitcoin was not designed to be more than a digital currency. For instance, in some cases, there is a need for greater anonymity.
- 21 million is where Bitcoin tops out.
- Bitcoin and mining eats up a lot of computing energy and power.
- 1MB Block size
- Slow and expensive
Some of these can be real coin killers if the founders and dev team don’t make the necessary changes in time.
Read this page in CryptoReview to learn more about altcoins.
Bitcoin vs Cryptocurrency
As you already learned, the problems Bitcoin is having has forced other dev teams to offer solutions. Most of the most popular solutions offer cheaper and quicker transactions. They generally have large blockchains that are capable of dealing with more use.
The Environmental Impact of Bitcoin
Environmentalists are concerned over the energy hog that Bitcoin has become. The mining of BTC takes a lot of energy. Over time, this will have negative consequences on the environment.
As many places around the world are focusing on becoming more energy efficient and planet friendly, Bitcoin become more harmful.
Is Bitcoin in a bubble? Some people say that it will soon pop and other’s think it will continue to grow. The merchants that are jumping on board to offer Bitcoin as payment continue to grow each month.
It has the longest track record for safety and has not encountered any security issues for the past almost decade it has been around.
Bitcoin attracts small businesses in particular because it offers a larger market to tap into. For instance, James Altucher sold one of his books exclusively with Bitcoin. The book was an instant hit. He also was able to get tons of press about it.
While it may look like Bitcoin may be in a bubble and growing without evolving, I think it is too early to rule out that Bitcoin can stand the test of time.
Cryptocoins like Ethereum are exploding in appeal. Ethereum’s climb has been swift. While it is not without its problems, many people feel it causes instability for Bitcoin because of the fluid nature of Ethereum.
Depending on the Cryptocurrency, some have the potential for greater rewards but will have substantially more risk involved, while others are focused on being more anonymous or faster than Bitcoin.
Other Digital Currency
Dogecoin and Litecoin are very good for smaller businesses. Think small purchases like coffee. Monero can provide untraceable transactions. This would be for country’s governments. Larger payments can be handled by Bitcoin that don’t require instant payment.
ICO Scams And Scamcoins
Not all cryptocoins coming into the marketplace have good intentions. While the idea of cryptocurrency is to put the power back in the hands of the individual, many just want to scam money while it is still an easy target.
Some crypto experts believe that 95% of the Altcoins released are scams. The ICO Scams were intended to make money for the creators. Once money is raised, they flee and the coin drops to zero.
You’ll see someone pop in on a forum talking about a startup coin. The coin is great and the creators are tweaking the shiny object gene people have. The coins will generally have been pre-milled and look like it is a true up and coming coin with value.
The Pump and Dump Scam
When the interest buzzes and people begin to trade the coin, the value begins to rise. People begin to repeat what they were told about the coin, without a lot of real depth behind it.
Once the creators have the amount of money they are satisfied with, they will suddenly sell all of the cryptocoins and disappear. The coin will fade into oblivion.
That’s known as the pump and dump scam.
If you want to know what to look for so you can avoid scamcoins, read this article on Cryptocoin Investing avoid scamcoins and ICO scams..