Bitcoin is a success especially this 2017. Despite plunging by as much as 30% after reaching its all-time high near $20,000, Bitcoin is a testament to people’s interest in cryptocurrencies. However, it is also important to take a closer look at competitors that could potentially dethrone Bitcoin as the number one virtual currency that we have today.
Ethereum is a considered by many as the digital currency that has the strongest chance to become the next Bitcoin. It is currently trading at around $770 while it has a market capitalization of $74 billion.
One of the questions that people ask is if there really is a Bitcoin bubble. Many have likened Bitcoin to the Dot-Com bubble. Tech-related stocks during the dotcom crash were worth $2.9 trillion before it collapsed in 2000.
Though cryptocurrencies, in general, are considered speculative investment at this point, Bitcoin has been getting the attention of many experts. One of the primary concerns is that a currency that has no intrinsic value is being hyped by its community of owners. Oliver White of Fathom Financial Consulting mentioned that Bitcoin “certainly fits the criterion” as a bubble.
However, there are those who argue that the price will rise further and volatility is nothing but a bump and we can expect higher valuation from Bitcoin in the near future.
Aside from the fact that many fear of a Bitcoin bubble, there are several issues concerning Bitcoin. For instance, it now takes hours before a Bitcoin transaction can be processed.
Oliver Isaacs, a tech investor mentioned that he believes Ethereum could be as successful and profitable as Bitcoin.
He said that “Bitcoin certainly is still the market leader in terms of value per coin as it is the most well-known cryptocurrency, so is the most widely used. However, I predict Ethereum will have the best long-term potential of any cryptocurrency though due to flexibility and smart contracts”.
There are also thousands of apps running on it while Ethereum’s transactions have recently surpassed one million per day. So does it really mean that Ethereum is the next big thing? You also have to take a closer look at the problems that Ethereum encountered. In fact, Ethereum is not really problem-free. It has also experienced network congestion as well as slowdowns.
Next, it is also important to note that Ethereum isn’t the only digital currency that is looking to take market leadership role from Bitcoin. For instance, you have the likes of Ripple that is gaining momentum recently. On December 10, its market capitalization has reached $9 billion and it has even doubled to $18.1 billion.
Ripple has been adopted by banks and other financial institutions. This cryptocurrency provides better price and can even be more secure than its competitors. But what makes Ripple interesting today is its liquidity.
2018 will be an interesting year for cryptocurrencies. Is it possible to see other virtual currencies such as Ethereum to take market leadership position from Bitcoin? Or will Bitcoin be able to solve its problems? Though everything is guesswork, the coming 12 months is definitely going to be interesting for the world of digital currencies.
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