What cryptocurrencies are the most popular today and what will be the most promising in the future?
What cryptocurrencies are the most popular today and what will be the most promising in the future?
Bitcoin is the most popular, most expensive and the biggest by market capitalization, followed by Ethereum, Bitcoin Cash, Litecoin, and a total of about two hundred cryptocurrencies. The most promising are the coins produced by projects that solve important tasks online, or even better – in the real world. The Monero coin went up a while ago due to the built-in function that increases the anonymity of transactions; the Ethereum network was recognized through the ability to create smart contracts: the most popular was the opportunity to make ICO (in fact, crowdfunding). The most popular among home-based miners are Zcash and Ethereum.
Why is the total volume of cryptocurrency limited?
The volume of emission is encrypted by a special algorithm, in the case of bitcoin it is limited to 21 million. Controlled supply has become a certain response to the policy of the printing press pursued by many central banks around the world.
What "stands" behind cryptocurrencies, is their stability guaranteed?
The market of cryptocurrency is, in fact, backed by controlled supply, anonymity and decentralization. In the recent years, these properties have been in great demand, but since cryptocurrencies are now more of a "phenomenon" than traditional "currencies" – the fluctuations are huge, and any, even verbal intervention, can lead to either a drop or a huge surge.
How does financial market react to cryptocurrency?
The market was divided into 3 camps: diehard supporters, irreconcilable opponents and observers, one thing is certain: there is no indifference to this sphere. All have their reasons to adhere to the chosen position, but still it is hardly possible to compare cryptocurrencies with tulip mania or a pyramid. The technical community is actively using the new technology, however it even has no official status on the government level: in China they are trying to ban, in Malaysia they want to legalize, the Russian State Duma is trying to conduct at least an expert assessment. In the end, the fate of this sphere will depend on many factors.
How does the price of a commodity sold for cryptocurrency correlate with its value?
The price of the product does not depend on cryptocurrency, since it is fixed by the seller in local currency, however the exchange rate of the cryptocurrency itself can make the purchase either more profitable or vice versa. If we are talking about a service that connects a debit card with a bitcoin wallet, then all calculations take place within the system, and if BTC/USD rate has grown significantly, then the purchase becomes more profitable.
How does blockchain technology in general, and cryptocurrencies in particular, affect the financial systems of different countries?
Bitcoin is unlikely to be officially admitted to the financial system of Russia. So far, mostly negative assessments are expressed, if the worst-case scenario: exchange trading is likely to be banned. Now you can order a card from abroad, tied to your bitcoin wallet. You can use it to withdraw money from ATMs, or pay for goods/services as with usual card. Officially, the authorities can prohibit the use of cryptocurrency due to a probable criminal-terrorist threat, but in fact the market will live by its own rules.
The reaction of the US Securities and Exchange Commission will be very important. At the moment the officials do not give an open negative or positive assessment of this sector. One thing is clear: America does not want to miss this opportunity. Practical implementation of blockchain is most actively mastered in Asia. After the ban on ICO and exchange activities in China, the market moved towards Japan, which is very loyal to the cryptocurrencies and exchanges, moreover, the country's central bank develops industry regulation. Singapore is also one of the main financial and technical hubs.
In the future, blockchain will be used most actively in interbank transactions, logistics, where the new technology is already being tested by such giants as IBM and WalMart, as well as in payments and money transfers. Now a big spread of blockchain takes place in India, which is moving toward unprecedented digitization of the economy. The number of crypto-payment terminals has been increasing across the world. It is quite obvious: this process is very difficult to stop, techno society becomes an independent force capable of solving problems and self-organizing.