Here at BitLeague, we’ve got a theme: there’s no such thing as bad blockchain. As blockchain-related services begin to take the world by storm, cryptocurrencies– especially bitcoin– are becoming more and more popular among investors looking for smarter ways to diversify their portfolios. Of course, as bitcoin’s user base has grown, alternative cryptocurrencies have arrived and begun to make their own cases for why they should be considered the investor’s best friend as well.
Getting to the bottom of the “best cryptocurrency” debate isn’t an exact science. Certain cryptocurrencies work better for certain users, and there’s not really a one-size-fits-all solution that’s a hands-down winner. Our team and platform are both bitcoin-specific– always have been, and always will be. But while bitcoin may be the most popular and most valuable of all cryptocurrencies, it’s worth understanding just how the other options stack up.
Bitcoin at a glance
Bitcoin is not the only cryptocurrency. It’s simply the name of the most popular cryptocurrency. Founded by Satoshi Nakamoto around 2009, it controls over half of the cryptocurrency market cap, and is known worldwide as the frontrunner in most things involving cryptocurrency. It operates on a peer to peer system, and a decentralized network– in short, users control and regulate it through a system of checks and balances, not any one government. Because of its decentralized nature, bitcoin’s value is the same anywhere and everywhere in the world, making it the first true global currency. Over the years, bitcoin has seen adoption rates climb substantially, catapulting its price from a mere $300 to as high as $20K per BTC, with all signs indicating continued growth.
With $19B of the market cap, ethereum is arguably the second most popular cryptocurrency. It, too, operates on a decentralized network, but employs a system of smart contracts for users. The best way to think of ethereum is as a more computer-based reflection of the blockchain. Ethereum transactions are programmable, and work best on agreements and algorithms, where bitcoin is almost exactly like cash. You can send 1 bitcoin to someone in about 10 minutes. Alternatively, you can program 1 ETH to send whenever a certain condition is met. Ethereum eliminates the need for middle men, but works differently than bitcoin in that it doesn’t operate like cash. Think of ETH like fuel — it has significant value and can be traded, but its real power is in what and how it operates.
Ripple is the name of the company that created XRP. While it possesses a significantly smaller share of the market cap than BTC or ETH, it operates most similarly to bitcoin. It’s a digital currency that is verified via consensus by members of a digital community, and can be used to buy and sell. The key difference between Ripple and bitcoin is that it is significantly cheaper than BTC and takes much less time to perform a transaction. It is also already used by many banks to perform quick, secure transactions. The best way to understand Ripple is to think of it as a process that allows you to receive money from someone else instantly, with little to no transaction fees, and without having to wait for days.
While there’s no right or wrong cryptocurrency, bitcoin has been around the longest, and is poised to stay. If you’re looking to maximize your bitcoin holdings, BitLeague is the platform for you. Explore our guaranteed interest-earning options today!