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5 bitcoin alternatives you need to watch
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5 bitcoin alternatives you need to watch

You might believe that there was only one digital coin and only one way to invest. In fact, the technology that underpins bitcoin was always meant to be open source. The blockchain concept has now been replicated and is being used to power hundreds of different altcoins that can all be bought and sold on digital exchanges.

That creates a bunch of new opportunities. You might have missed out on bitcoin’s sudden rise but there’s no shortage of other cryptocurrencies that might just be about to rocket to the top. Once you’ve done a bit of research, you might well find that there are some valuable opportunities currently overlooked by the press. Here are five you should keep a close eye on in 2018.

 

Ripple

Ripple is an unusual cryptocurrency. Unlike bitcoin, it’s centralized, with a small group of developers setting the rules and determining availability. It also has a specific use: the coin was created to enable transfers between financial institutions. While that should give it a certain degree of security the lack of community control has made it a controversial and unreliable investment vehicle. In 2017, Ripple’s dollar value rose by 36,000 percent. It’s since come back down significantly.

 

Ethereum

With a market capitalization of more than $130 billion, ethereum is the second largest cryptocurrency after bitcoin. Like ripple, it was created for a specific purpose, this time to power smart contracts. That makes the coin valuable to developers. As long as they continue to build on ethereum and find uses for it, there could be demand.

 

Litecoin

Litecoin is often described as the silver to bitcoin’s gold. It’s been around since 2011 and has been helped by not having any of bitcoin’s transaction speed limits. Despite these advantages however, it has much smaller trading volumes which means even more volatility than bitcoin. Its faster transaction speed could also be negated by a smart bitcoin reform.

 

Bitcoin Cash

Bitcoin Cash was created as a variant of bitcoin that doesn’t have bitcoin’s scaling problems. Block sizes are eight times larger than bitcoin’s enabling more transactions to be grouped together. It also doesn’t use replace-by-fee, a way of speeding up the confirmation of transactions by raising the fee which also creates a potential for double spending. The bitcoin community is divided on whether or not this fork of bitcoin’s blockchain is a good thing.

 

Monero

One of the benefits that bitcoin promised was anonymity. No one could trace the direction of the funds or their owners. It’s a feature that made it popular with black market traders. In fact, bitcoin was never completely secure. The blockchain can track individual payments and can link them to individuals as soon as they’re converted into fiat. Monero promises greater security. As long as there’s a demand for confidential transactions, there should be a demand for monero.

 

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