Cryptocurrencies are digital assets that are developed, designed, and managed by using high-level encryption methods, known as cryptography. Years ago, cryptocurrency was just a mere academic concept and today it has become a reality. This concept became a reality in the year 2099 when Bitcoin came into being. To receive more extensive information on bitcoin trading, go to https://thequantumai.app/
Bitcoin attracted thousands of people itself and gained a huge fan following within no time, though there were people who did not trust and rely on Bitcoin back then the majority was astonished due to this development in the financial world. Bitcoin was highly successful in attracting a huge number of investors and potential users in April of 2013 when this platform peaked at a record of $266 per bitcoin after rolling 10-fold in the previous two months.
Bitcoin was luckily able to sport a market value of more than $2 billion highest but due to some reasons it, later on, sparked an intense debate about the next generation of cryptocurrency and particularly Bitcoin.
Cryptocurrencies Bringing Alternatives to Bitcoins
Though bitcoin has its issues and is still unresolved but despite all the issues and obstacles this crypto asset grew and launched a new range of alternative cryptocurrencies. Some of the major and most prominent alternative cryptocurrencies are given below:
Litecoin
It will not be wrong to say that Litecoin is the biggest rival of Bitcoin at present. This crypto platform was first designed for making smaller transactions more quickly. This cryptocurrency was established in the year 2011, right after 2-3 years of Bitcoin’s launch. Litecoin also earned the title of a coin that is silver to Bitcoin’s gold.
Litecoin does not require heavy computing or horsepower machinery as it can easily be used in a normal desktop computer. The highest limit of supply for Litecoin is around 84 million which is four times more than that of Bitcoin’s limit. But it lacks the transaction time which is 2.5 minutes which is almost one-fourth of Bitcoin.
Ripple
Ripple cryptocurrency was launched by a platform known as OpenCoin. This company was established by Chris Larsen, known in the market as a technology entrepreneur. Ripple was launched in 2012 right after Litecoin. This currency is also known as the alternative coin as it was launched after Bitcoin.
Ripple is both a currency as well as a payment system. Its token is XRP and owns a mathematical base just like Bitcoin. The payment system in this currency allows the transfer of funds in all currencies to another user on the Ripple ecosystem within a matter of seconds while on the other hand, the transactions of Bitcoin can be very lengthy and time-consuming.
MintChip
MintChip is an invention of government authorities which is rare as most cryptocurrencies are related to any government sector. MintChip is a type of smartcard that owns electronic value and allows transferring it safely from one chip to a new one.
Just like the Bitcoin cryptocurrency, MintChip does not require any sort of personal identification and is collateralized by a physical or fiat currency, the Canadian dollar.
Is Investing In Cryptocurrencies A Safe Decision?
People who are thinking about investing in these digital assets will need to treat your investment in a way you would treat other highly academic risks. In simpler words, investing in digital coins and platforms is highly risky and you can lose all your investments.
It is known that a cryptocurrency does not have any fundamental value other than what a purchaser is ready to pay for it anytime in life. This act makes it very open to huge price fluctuations which lead to higher risks and losses for investors.
Though cryptocurrencies are a great investment but come with high risks and if you cannot stomach that kind of volatility you might have to look somewhere else to make investments. The opinions about investing in cryptocurrencies are still not constant but thousands of people all around the world are going crazy after this innovation.
Conclusion
The emergence of these cryptocurrencies has sparked a debate among the digital as well as actual world finances. The opponents are not in favor of crypto assets but the people in favor are increasing in number with every passing day. Before investing in any crypto asset know about the challenges you will have to go through with the platform.