There are thousands of cryptocurrencies already and more of them are entering the scene. Yet, most will end up failing, not able to meet competition and offer unique solutions. But why did those few that do make a big success become so influential? Let’s find out what are the features of the most popular coins on the cryptocurrency market.
Bitcoin
Nine years ago, when Bitcoin just appeared, it was not even worth a dollar. Last year, the price of BTC surpassed $19,000 at its peak. Meanwhile, digital currency is attracting new users by the dozen. There are several conditions that have helped Bitcoin become this successful. The hype around it definitely influenced Bitcoin’s magnificent growth in 2017. People didn’t want to miss out on the next big thing and Bitcoin was a natural choice for a lot of investors. No other cryptocurrency has had the same level of media attention as Bitcoin. There are tons of stories out there about random people finding success after investing in Bitcoin. These stories motivate people to buy Bitcoin more and more.
Speculation has also contributed significantly to Bitcoin’s success. Many people still expect Bitcoin to be worth a lot more money down the road. While no one actually knows what will happen to the price of BTC in the upcoming years, investors are willing to take the risk because they believe their predictions are going to come true. Various governments have openly embraced Bitcoin, which also has driven the price of BTC up. For instance, Japan officially legitimized Bitcoin exchanges a few months back.
Ethereum
Ethereum’s success lies in its ability to set itself apart from Bitcoin and other cryptocurrencies. The blockchain behind Ethereum has a lot more utility. While some only have one area of use, developers can build potentially thousands of applications powered by Ethereum. The usefulness of smart contracts has been at the heart of Ethereum’s success. It has been the go-to currency for businesses and startups in the finance and technology space who want a decentralized network to operate on. This functionality enabled Ethereum to grow exponentially in 2017. That growth has now slowed down, but Ethereum remains the second most popular cryptocurrency on the market and still shows a lot of potentials.
Some areas have problems with their central banks or have struggled with the fiat currency. In these areas, people need cryptocurrencies like Ethereum. India is a prime example: interest in Ethereum there has been even higher than interest in Bitcoin, largely due to the state of the central banking system in the country. ICOs have also had huge support in India recently, which has helped Ethereum become the cryptocurrency of choice in the region.
XRP
By the market cap, XRP is the third most important cryptocurrency. The developers understood that traditional financial institutions were costly, non-transparent, and slow. XRP stands out because it solves these issues. Part of Ripple’s success is that the company did what it set out to do, and now it manages to live up to its promises – something most cryptocurrencies fail to deliver. It has also made some significant partnerships with big-name banks, which has helped reinforce investors’ confidence in the company. One major partnership it has made is with SBI Holdings. There are also rumors that Ripple is about to partner up with Apple. Such suggestions increase the interest in the currency and help spike the price.
Ripple’s payment system is far-reaching and can be used worldwide. This has made XRP attractive to people all over the world. Other digital currencies are more narrow in who they target.
Bitcoin Cash
This Bitcoin fork had tremendous success over the course of the past year. Bitcoin Cash has the advantage of having the Bitcoin name attached to it. New investors are more likely to risk money on the coin that has this brand name.
Bitcoin Cash has an improved block size of 32 MB, which means it can handle a higher volume of transactions, process transactions faster and at a lower rate. Apart from that, the biggest advantage of Bitcoin Cash is its accessibility. Bitcoin Cash is available for trading at a bunch of major exchanges. It is designed to be widely acceptable, so all types of investors can trade it easily.
EOS
EOS started with an ambitious promise, claiming it could carry out smart contracts more quickly than Ethereum. It also promised to be a less expensive alternative. Despite the skepticism, EOS has experienced steady growth this year and is starting to find its place in the crypto space.
Part of the recent success of EOS is related to the drop in Ethereum’s value. In addition, China’s government has recently ranked EOS the top blockchain. As the world’s most populous country, China can influence the disposition, especially since it has been so tough on Bitcoin this year.
Conclusion
The world of crypto is rapidly changing, with new coins emerging from time to time. Among the hundreds of different cryptos, there are only a few that really stand out and offer game-changing solutions for money transfers. The biggest coins not only influence the crypto market but also have some unique features that can help different industries improve their services and become more secure.
Photo Credit: Pixabay
