In this article, The Indian Wire talks about the 10 trendiest Cryptocurrencies of the world for the year 2019 , based on various factors i.e. security, instant transaction ability, minuscule transaction fees incurred and infinite scalability (mainly accounting on volatility and market liquidity).
But before that, taking a quick recap on the Cryptocurrency & how it has been a dark horse of sorts for the economy and its surprisingly unignorable growing power. The ever-so evolving and expanding crypto industry sees the release of a new digital token almost every day. The world has come far from the Bitcoin, a pioneer of cryptocurrency. Though the plight of Bitcoin cannot be considered as a benchmark for determining the future of upcoming cryptocurrencies. However, it certainly takes a centre stage when it comes to analyzing the market capitalization value of other cryptocurrencies competing against each other in the market. Apart from BTC, analysts are also adopting other newer methods for evaluating cryptocurrencies as well.
These newer cryptocurrencies or better known as Altcoins, are defined as modified and even improved versions of Bitcoin. Despite of the rise of newer cryptocurrencies, the underlying problems namely- forking done for both technological improvements and self-serving purpose of multiplying the asset, establishing credibility in the market and mismanaged expectations have continued to plague the cryptocurrency market.Because of this social media and IT giants such as Facebook, Google and Microsoft has banned private cryptocurrencies related advertisements on its platform.
Harmoniously decentralized with mainstream?
The biggest example of this red inked reputation was seen during the Libra Cryptocurrency announcement. A virtual currency by Facebook’s co-founded organization, Libra Association that promised a safer and better version of any other cryptocurrencies seen in the market. Facebook chose to impress its users with diligently evaluated features such as Libra Blockchain created to allow moving from permissioned (initially) to permissionless chain (eventually), having stable coin properties & to be able to reach out and include the unbanked in the financial system.
But this didn’t go well as per the expectations since the Libra blockchain is not a blockchain in traditional sense. Instead, it was seen as a blatant attempt to control and dominate the crypto market owing to massive reach out ability. People are growing apprehensive because of the recent scandals courted by Facebook , prominent been Cambridge Analytica episode. And with this new development , people fear their financial data will be misused for targeted advertisements. Although on a brighter note, Zuckerberg plans to earn from Libra’s Facebook advertisements(a gold pot for FB) after its usage sees success with the people.
Meanwhile, Facebook assures in its recently released whitepaper that Calibra, a regulated subsidiary of Libra will ensure separation of financial and social data with operations and network built solely for Libra’s purpose. Calibra will act as a maker of wallet for Libra cryptocurrency’s usage that proposes for authorities to allow regulations to check money laundering and other nefarious activities. With Libra all set to launch in 2020, its reception only will determine the virtual currency’s future in the cryptocurrency market. And if success, it will definitely be a positive for startups and companies. As they see a huge scope of collaboration between government and Facebook for smooth and linear transition. Especially in India, where Facebook has some talks about its plan to launch cryptocurrency for easy money transfer through Whatsapp,with a user base of more than 400 million.
Now, let’s take a look at the virtual currency picks in the list –
In 2009, Satoshi Nakamoto founded Bitcoin with a first peer-to-peer decentralized blockchain network supporting its currency. The currency has the highest number of users, highest amount of trading value, highest liquidity and it is one of the most stable cryptocurrency till date. With a few problematic areas such as very slow transaction speed and all time high transaction fee.
Nevertheless, it still makes Bitcoin the king of cryptocurrencies and a best replacement for the fiat currency. The market cap value for Bitcoin on December 27, 2019 is recorded as $130,748,494,487 USD.
The major project was created by Vitalik Buterin in 2015, an open source decentralised Blockchain network supporting its currency. It is more than a digital currency that enables smart contracts (considered as the next big thing in the cryptocurrency universe) and decentralized applications (DApps) for finance ,organization, management, new market places and applications disrupting their own industry, that are built and run without any downtime, fraud, control or interference from a third party.
The currency has high liquidity, high stability and lesser transaction time required but there are some issues with scalability, which makes it a second fiddle to Bitcoin.The market cap value for Ethereum on December 27, 2019 is recorded as $13,723,346,258 USD .
In 2011, a fork of Bitcoin was released by Charlie Lee that was built on Blockchain itself with a purpose of improving it.This peer-to-peer digital currency is 40 times faster than Bitcoin in transaction time, one of the longest to exist and has a strong market recognition.
The asset is very liquid and more reliable of hold.That makes it silver to the Bitcoin’s gold status. Owing to its abysmally small nominal base value, it has a massive potential which is yet to be realized. The market cap value for Litecoin on December 27, 2019 is recorded as $2,560,705,788 USD .
Ripple was launched in 2012 with its mining process being centralized by Ripple Labs Inc.The currency’s structure is unique from others as it requires no mining, making it fast & very economical due to its minimized network latency and reduced usage of computing power. It has a real time gross settlement system (RTGS) that offers instant, real-time, end-to-end transparency and lower transaction fee which makes it a favourite for global payments across borders, hence making it infinitely scalable.
It has found credibility for usage from financial institutions like American Express and Santander. The only problem it encounters is of the centralized model , which is due to more than half of its coin owned by the company against the typical decentralized model of cryptocurrency. The market cap value for Ripple on December 27, 2019 is recorded as $8,211,065,054 USD.
Founded in 2014 by Jed McCaleb, a hard fork of Ripple was created to make cross-border payments more efficient.The currency’s structure is designed to be more decentralized that offers quick and secure payments. And what sets it apart is the micropayments viability and sustainability which results in economic maximization, which is currently absent in the traditional bank systems due to a humongous cost incurred. If well implemented, it is predicted to inspire a paradigm shift.
The top organizations such as IBM and Deloitte are using Stellar blockchain. The market cap value for Stellar (now known as Lumens) on December 27, 2019 is recorded as $898,322,099 USD.
Tether was launched in July 2014 by Tether Ltd. with a rebranding done a few months later. This is a hybrid crypto-fiat stablecoin, which offers cheaper transaction fee, quick transit time, converts real cash into digital money, has transparency and 100 percent backing of all the Tether units by cash equivalent. The cryptocurrency operates on the Bitcoin blockchain and nearly 80 percent of its trading is done in Tether.
It is a major source of liquidity for the cryptocurrency market. The market cap value of Tether on December 27, 2019 is recorded as $4,108,325,667 USD.
In 2016, Bitcoin was hard forked to create Bitcoin Cash. Regarded as one of the earliest and most successful altcoin to Bitcoin. This cryptocurrency was created to address the issues of scalability, transaction fees, transiting speed and security. Though it is still regarded as a shadow of Bitcoin because of its technical similarities with each other.
The only issue with BCash ( better known as) is availability, which makes it difficult to get hold of in the cryptocurrency exchange. The market cap value of Bitcoin Cash on December 27, 2019 is recorded as $3,436,659,102 USD.
Created by Dan Larimer, this cryptocurrency was launched in 2017 through ICO. Built to provide decentralized application and smart contracts with a better technology used than previous cryptocurrencies. It is designed to be more scalable, flexible and faster than ethereum (its direct competitor) and other cryptocurrencies.
Its platform is yet to be launched and at present is a conceptual initiative.The market cap value of EOS on December 27, 2019 is recorded as $2,390,472,606 USD.
In 2017, Charles Hoskinson launched Cardano cryptocurrency with Ethereum and NEO as its direct competitors. The cryptocurrency offers a platform for DApps and Smart Contracts with improvements done in technology.It offers advanced features of interoperability and scalability. And tackles the issues of international payments with lesser transit time and cost incurred.The platform used is considered as the 3rd and most advanced generation of blockchain technology.
The cryptocurrency is moderately volatile and has a high trading volume. Even though some developments are getting made in the final product, it is yet to be received in the market.The market cap value of Cardano on December 27, 2019 is recorded as $879,156,286 USD.
Binance Coin came into being in 2017, was created by Chanpeng Zhao. Considered as a utility token which makes it different from other cryptocurrencies, means it’s value is based on the demand in terms of utility and its usefulness in the Binance ecosystem.The utility token has one of the highest liquidity amongst the available in the market.This utility token is highly volatile but with consistent growth (over 300% in last five months in 2019). This has clearly secured its position as one of the fastest growing in the cryptocurrency market along with Binance Crypto Exchange.
It is regarded as one of the best cryptocurrency, used in Binance Crypto Exchange as native currency and for Peer-to-Peer (P2P) transactions. The market cap value of Binance Coin on December 27, 2019 is recorded as $2,044,102,828 USD.