After China Ban, Other Cryptocurrencies Get More Attention
Thursday, October 26, 2017, 6:00 AM | Leave Comment
Bitcoin has recovered from losses associated last month with China’s decision to ban initial coin offerings (ICOs) and exchanges, yet it gave pause to many investors looking for alternatives to bitcoin.
While Bitcoin is still king of crypto, many investors worry that fraud, abuse and further bans like China’s could hamper continued growth.
After Bitcoin trading collapsed in China, traders and investors shifted their attention to other cryptocurrencies like Ether, Litecoin, Onecoin and other crypto tokens that are issued through ICO’s and token sales.
Let us take a look at some good alternatives to Bitcoin:
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OneCoin
Strong foundation and management, transparency, and fast processing of payments are some reasons why OneCoin is different from bitcoin. The founder of this cryptocurrency, Dr. Ruja is actively involved in management. It has an audited blockchain that prevents the type of fraud and appeal to online organized crime that has plagued bitcoin. The team behind OneCoin seeks to provide access to cryptocurrency and its use to everyone regardless of their technical expertise.
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Ethereum
This cryptocurrency has been termed as the rising star of the cryptocurrency world. It is second only to bitcoin but has several advantages over it. It allows for blocks, that is, the records of the transactions can be created much more quickly as compared to bitcoin.
The technology of Ethereum enables computer applications to run and not just ether to run on the network. Several applications have been built on Ethereum, and the network is also used by startups to raise funds.
The cryptocurrency which has rocketed to popularity in the last few months was founded by 19-year old, Thiel Fellow, Vitalik Buterin, who unlike the controversial bitcoin founder, has always been there in the open. There are around 5.3 million cryptocurrency wallets which hold ether (individuals can have more than one wallet). There has been a dramatic rise in the number of wallets from 1.6 million in May.
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Litecoin
This is one cryptocurrency which is poised for growth. Brought into the world by former Google engineer, Charles Lee, it has been created to cater peer-to-peer transactions worldwide without any user incurring charges. It creates a new block every 2.5 minutes and uses the blockchain technology more efficiently than bitcoin.
Interestingly, after China imposed a ban on bitcoin exchange and ICOs, Litecoin not only suffered a marginal loss but also skyrocketed to a new price of $92. It fell by about 50 percent then by 25 percent, and the net market capitalization rose to $4.1 billion. Litecoin has been growing steadily, and this can be attributed to the enthusiasm of Chinese traders.
With the rise of other cryptocurrencies, there arises a question about bitcoin’s success in the coming years. Experts across the world claim that it has failed already. Let us look at some of the reasons which made them think of bitcoin as a failure.
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Unknown CEO and Founder
This is one of the biggest mysteries in the tech world. Cryptocurrency users, traders, investors, and journalists have tried their best to unmask the creator of bitcoin who exists under the pseudonym, Satoshi Nakamoto.
As the identity of the inventor remains elusive, many experts say that bitcoin will eventually reach its fate. Unlike the founders of other cryptocurrencies who are always there in the open to support the management in key strategic decisions, bitcoin lacks that support.
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Involvement in Criminal Activity
Experts who have been watching the market say that bitcoin is being used in illegal activities since it is untraceable. Researchers at Grant Thornton claim that more than half of businesses which faced extortion after a recent cyber-attack were asked to shell out bitcoins as ransom. Regulators in China banned ICOs claiming that they assist in illegal fundraising.
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Other Cryptocurrencies Have Filled in the Gaps
Bitcoin was the first cryptocurrency and many others that followed improved on it. For instance, Litecoin’s script hashing algorithm has made it easy for miners to access the currency.
Also, bitcoin is limited in number which means it will have to be broken down into decimals if a user has to make payments. People like to pay in rounded numbers. Cryptos like OneCoin and Litecoin will make it easier to make payments.
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Article by Tom Crypto, blogger and cryptocurrency enthusiast.
