5 Cryptocurrencies to Watch in the Next 5 Years
Facebook’s announcement of the launch of their Libra coin has boosted interest in cryptocurrencies in 2019. Bitcoin, Ethereum, Litecoin, and the technology on which they are based, Blockchain, seem to have a bright future.
There are thousands of cryptocurrencies on the market, some worth only a few cents. Bitcoin’s main rival is Ethereum, which experienced spectacular growth in early January. Bitcoin Cash and Litecoin are other significant players in the crypto money world.
Bitcoin is the star of cryptocurrencies, the first to have attracted the attention of the general public. Created in 2008, it celebrated its tenth anniversary in 2018. Its inventor, Satoshi Nakamoto, remains mysterious. Satoshi Nakamoto represents the underlying philosophy of Bitcoin, namely to provide a decentralized currency, without control by States, a company, nor a person.
Bitcoin, like other cryptocurrencies, is based on blockchain technology. It is a technology for storing and transmitting information, operating without a central control body. Only the two users exchanging the currency have access to the transaction, which is a definite security advantage.
A blockchain can be compared to a public ledger. A permanently accessible account book since all transactions made since the very first block are listed openly.
The number of Bitcoins in circulation is limited. By the end of 2140, the creation of Bitcoin will be stopped, and there will only be 21 million units.
Litecoin is one of the best-known crypto currency based on Bitcoin code. Created in 2011, Litecoin is a crypto money distributed under a free license.
Litecoin improved the Blockchain on which it is based has thus been improved compared to that of the Bitcoin. In particular, this has made it possible to speed up the verification process and thus increase the speed of transactions, which is currently higher than that of its competitors. And transaction costs are much lower than those of Bitcoin. Litecoin is therefore particularly suitable for daily transactions.
Like Bitcoin and most crypto assets, Litecoin production will be in a limited number. The Litecoin emission rate halves every 840,000 blocks, and will eventually reach 84 million Litecoins. There is a halving coming soon this month of July 2019!
The latest in the world of cryptocurrencies, Libra was launched with great buzz on June 18 by Facebook and its boss, Mark Zuckerberg. It is a “stablecoin,” i.e., a crypto money backed by a reserve of currencies and stable values, such as the dollar or the euro. Unlike Bitcoin, which is very volatile, it should not attract speculators.
The Libra is designed to transfer money with a smartphone “as easily and instantly as when you send a message,” or to buy come and service on e-commerce sites or via applications. Uber, eBay, Spotify, and Booking are already part of the project.
Ethereum and its currency, the Ether, is one of the most popular crypto money, behind Bitcoin.
Ethereum was founded in 2013 by a 19-year-old Russian-Canadian computer scientist, Vitalik Buterin. Launched on July 30, 2015, the Ethereum, the platform that supports Ether, has seen a significant increase in its value since then.
The strength of the Ethereum, which is also comparable to Bitcoin, is based on its Blockchain, the technology on which it is based. It can be used as a basis for a multiplicity of applications, unlike the Bitcoin application for transactions only. It is a very powerful tech powered by smart contracts.
Ethereum thus makes it possible to create “smart contracts.” Some believe that this could be even more revolutionary than artificial intelligence, by radically changing and improving the way all transactions are carried out.
Ethereum’s Blockchain could replace notaries, lawyers or others by acting as a “trusted third party” in a transaction, and by setting up flawless contracts in a matter of seconds, much more efficiently than a human being.
Nicknamed “the real Bitcoin” by its followers, Bitcoin Cash was born on August 1, 2017, from a schism (“hard fork”) with Bitcoin. Even if it is based on the same Blockchain, it is faster and guarantees cheaper transactions than Bitcoin. However, the latter should soon see changes that will enable it to catch up on its deficit.