Love it or hate it, cryptocurrencies are here to stay. Over the last few years, they have soared in popularity, with Bitcoin being the cryptocurrency people are most familiar with. But what are some of the cryptocurrencies which are rivalling Bitcoin?
Launched in 2014 by a former Bitcoin Monthly writer, Ethereum is a global, decentralised platform for money. As of 7th December 2020, it’s trading at a rate of $593 and has a market cap of about $67.48 billion. This certainly doesn’t come close to Bitcoins $19,207 trading price and $67.48 billion market cap, but it is currently the second-largest digital currency by market cap. However, the fact that Ethereum provides more uses than Bitcoin and utilises superior technology, could see Ethereum eventually close the gap on Bitcoin.
Launched back in 2012 by former Bitcoin developers, Ripple is considered by some industry experts to be Bitcoin’s next successor. Many banks are already using it as a worldwide payment and remittance system. Despite only trading at $0.60 and having a market cap of $60.15B, it has huge room for growth due to its continued disruption to the cross-border payments industry and its ever-growing partnerships with banks and financial institutions.
Monero was formed in 2014. It is also a digital currency like Bitcoin, but when it comes to privacy, it beats Bitcoin hands down. Monero uses various techniques to ensure privacy, including sender and recipient identities, and transaction amounts. This focus on privacy has seen it gain support from some of the biggest players in the crypto industry.
In 2020, Monero’s price has risen rapidly, rising from a yearly low in March of $32 to currently trading at $132. These huge gains mean Monero is currently outperforming Bitcoin so far this year!
Litecoin, launched in 2011, was of the first cryptocurrencies to follow in the footsteps of Bitcoin. Created by former Google engineer, Charlie Lee, this cryptocurrency is similar to Bitcoin in many ways – they even share the same code and price movements. As of 7th December 2020, Litecoin has a price of $85 and a market cap of $5.68 billion, making it the sixth-largest cryptocurrency in the world.
Although it’s not technically a cryptocurrency like Bitcoin, due to the fact it’s being issued and controlled by the People’s Bank of China, it still looks set to become a global currency. China’s digital currency has been in the making since 2014, and this means China is well-positioned to take a leading position in one of the key asset classes of the future. The digital currency is still yet to be released, but it appears it will have the makings to become a force.
When investors are considering investing in cryptocurrencies, they are often drawn purely towards Bitcoin. However, some of the cryptocurrencies listed above have real potential, and investors must consider diversifying into other digital assets like these, in order to maximise their potential returns and gain exposure to other digital assets.