Bitcoin is disrupting fintech
Stephen Walker takes a look at some of the newer cryptocurrencies disrupting the market as investors look for alternatives to Bitcoin...
Bitcoin investors have a right to be concerned after the virtual currency recently fell under $8,000 (£5,700). It hasn’t sunk below that mark since November. Since its highest-ever $19,511 (£13,900) on 18 December , Bitcoin has managed to wipe over 50% of its value.
It’s suffered a number of setbacks in that time, including Facebook’s cryptocurrency ads ban, concerns over price manipulation, a highest-ever $500mn (£354.8mn) heist at Japanese exchange Coincheck Inc, and threats from authorities all over the world, such as the U.S., China, South Korea, and India.
Some investors may be deterred by Bitcoin’s hefty price tag and looking for the next big digital currency. In fact, many such investors are already looking at such alternative currencies as Ethereum and Litecoin, as they are already proven as active projections that can better handle transactional issues that were previously handled poorly by Bitcoin.
Thankfully, for investors new and old, innovative cryptocurrencies are appearing all the time. Let’s take a closer look at some of the most promising cryptocurrency out there.
One of the more popular alternatives is GDAX (Global digital Assets Exchange), the Coinbox-owned exchange that enables investors to trade different pairs by country. The main benefit of using GDAX is that, unlike when investors trade with other cryptocurrencies through the Coinbase platform, they aren’t subject to transaction fees. Those fees can mount up through frequent trading.
Neo Coin, which can be traded on such sites as Etoro.com, is the largest cryptocurrency in China and has now gone global. It’s a new method of spending money that powers the worldwide economy. It enables its user to publicly trade virtual assets via a public smart contract enabled ledger. Once certain platform criteria are met, the user can move their money around. After Neo Coin reached $59.94 in December, it achieved a 128% growth by late January to £135.75, creating a lot of excitement about the digital currency. The coin now ranks in the world’s top 10 in terms of market capitalisation.
Kathleen Breitman is banking that her own Tezos will resolve issues with extant blockchains. More specifically, Breitman, along with her team of developers, will see that Tezos pushes software updates out to its network, which should theoretically avoid any squabbling over upgrades that have harmed such currencies as Bitcoin over the last few years.
On October 1, 2017, a cryptocurrency called Cardano began turning up on crypto-tracking websites with a market cap of approximately $6000mn (£425mn). It was unusual at the time to see a new cryptocurrency with such a large market cap. It now ranks as the sixth largest cryptocurrency.
Bitcoin’s recent struggles have given strength to a theory that it could go on to become one of the most famous bubbles in history, right up there with the dot-com craze and tulip mania. The good news for investors is that there are other cryptocurrencies waiting in the wings and ready to learn from the mistakes of the first virtual currency. Aside from the above, these coins include Litecoin, Bitcoin Cash, Ripple, and Ethereum.
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