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Cryptocurrencies Comparison

Your capital may be at risk. This material is not investment advice.

Since the arrival of Bitcoin in 2009, several other cryptocurrencies have launched because of technological advances, expanded applications and rising demand. While Bitcoin has dominated the market for many years, there are 1,300 plus currencies today some of which are giving it a run for its money and fame.
In this article, we compare the three most popular crypto’s in terms of their value, market capitalization and overall performance.

Bitcoin

By value, Bitcoin is the largest cryptocurrency. It is also a pioneer in the market having been started in 2009. Its market cap is $275.1 and runs on a digital ledger technology known as blockchain. According to Satoshi Nakamoto, the founder of bitcoin, this currency was developed to enable direct online cash movement through electronic cash that works independently from financial institutions. Lack of a central governing authority and a network of ‘miners’ have made it a highly volatile cryptocurrency. Nonetheless, there are already retailers and even real estate firms in Japan and other parts of the world that are already accepting Bitcoin as payment.

Pros for Bitcoins

· It is has greater liquidity compared to other cryptocurrencies.
· It has a wide ecosystem of developers and more software and projects being implemented.
· It has the widest receivership with more software/hardware support systems, more exchanges and more merchants.
· It leads in terms of market value.

Cons of Bitcoin

· It is highly volatile with ‘miners’ pushing the value to the edge

Trading Area
The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

Ethereum

Ethereum is run on a decentralized virtual machine called Ethereum Virtual Machine (EVM) that is programmed to execute tasks with no interference from a third party or censorship. This cryptocurrency was started in 2013. A lot of blockchains have been birthed from this cryptocurrency whose market cap is $71.1 billion. The technology used here is called the smart contract which involves both a digital and paper deal. The smart contract is written in a code that is then fed into the blockchain. Companies like JPMorgan and Microsoft are already developing uses for this cryptocurrency.

Pros for Ethereum

· It has enabled the creation of other currencies like Ether that allow users to develop their unique applications (dapps).
· It has fast transaction speeds
· It can be more useful than just being a cryptocurrency on the Ethereum network.
· The Ethereum network is safe from spams by hackers since there is an amount of ether destroyed during the transaction process.

Cons

· It can easily be inflationary if not closely monitored.

Litecoin

This is the cryptocurrency that gives Bitcoin nightmares in terms of popularity. Charlie Lee, its founder, has claimed many times that it is faster than bitcoin and this can be used for payments. It has a market capital of $16.5 billion and a transaction takes just a little over two minutes as opposed to transactions on Bitcoin that take over 300 minutes. LTC also supplies over four times what Bitcoin supplies, which makes it the silver of Bitcoins gold.

· It has fast transaction speeds
· It is supplied in high amount

Cons

· It has a low market capitalization

Conclusion

There are some controversial cryptocurrencies like Ripple (XPR), Bitcoin gold (BTG), Bitcoin cash (BCH) which are together called Altcoins (alternative coins) that were all launched after bitcoin became successful.