At the start of the new year, Bitcoin had reached a new high for three years, and its value stood at $ 1063 per time of writing. For the uninitiated, Bitcoin is a decentralized virtual digital currency, which can be used to make payments online. Currencies like Bitcoin are known as cryptocurrencies because cryptography techniques are used to generate and use currency digitally. There are over 200 cryptocurrencies today and while Bitcoin is the undisputed leader in this segment, other alternatives may offer better functionality in various segments. So before we get started, let's see why exactly you would like to use Bitcoin alternatives.
Why Bitcoin Alternatives?
Bitcoin was designed in such a way that the more miners come together, the more difficult my Bitcoin actually becomes. To put things in perspective, in 2009, you could mine 200 Bitcoins in a few days. With the same hardware, it would take 98 years to mine a single Bitcoin in 2014. Energy consumption rates could skyrocket, as you should be turning on the hardware for a longer period. So many Bitcoin alternatives have come to the rescue. Today I will speak of 5 Alternative Bitcoin cryptocurrencies you can use:
Note : all current exchange rates are purchased from January 4, 2017 from CoinMarketCap and are subject to change.
Created by former Google engineer Charles Lee in 2011, Litecoin la second largest cryptocurrency after Bitcoin. It was built with the reason to improve on Bitcoin. Here's why you should consider using Litecoin:
- Litecoin has a coin limit of 84 million, which means that a total of 84 million Litecoins can be extracted / generated. In contrast, Bitcoin has a limit of 21 million, of which around 16 million has already been generated.
- Bitcoin uses the SHA-256 hash algorithm, compared to Litecoin, which uses the scrypt . The SHA-256 algorithm requires the use of more powerful ASIC hardware for extraction and GPUs are not worth the effort. The Litecoin's Scrypt algorithm relatively less demanding, making Litecoin mining using existing desktop computers a little easier.
- The block generation time for Litecoin is 2.5 minutes compared to the longer 10 minutes of Bitcoin. It implies that Litecoin more efficient in managing a large volume of transactions compared to Bitcoin.
Current exchange rate: 1 Litecoin = $ 4.73
Visit the Litecoin website
Ethereum a relatively new entry in this segment, but quickly emerged as a viable alternative to Bitcoin. The coins in the Ethereum network are called Ethers. It brings some new concepts to the table and offers a range of services that are not possible with Bitcoin.
- In Ethereum, the block generation time set to 15 seconds compared to 10 minutes of Bitcoin. Ethereum boasts one of the faster transactions among all cryptocurrencies.
- Ethereum's encryption technique allows you to extract Ethers with the GPU available on your computer . With Bitcoin, it is almost impossible to extract it using normal GPUs, since it requires the use of powerful ASICs.
- All cryptocurrencies reward you with virtual money for mining. With Bitcoin, this reward halves after every four years. So along with time, it becomes more difficult for me and the reward you get for mining a lot less. THE awards of Ethereum with the same figure every year. So investing time in mining Ethereum could prove more beneficial than Bitcoin.
- Ethereum brings a new concept of " smart contracts ". Allows two users to commit bindingly to exchange Ether. For example, two users could send Ether's $ 500 worth to a smart contract. The network can then transfer the money after the specified time period, in irreversibly, this type of contract could prove beneficial in countries with relaxed courts, as the whole process is supervised by a computer program.
Current exchange rate: 1 Aether = $ 10, 76
Visit the Ethereum website
3. Dash (Darkcoin)
Darkcoin was originally launched in 2014 and was renamed "Dash" later in 2015. it became quite popular thanks to the fact that it brings the anonymity in the transaction procedure.
- The Bitcoin system allows anyone to view any transaction on the network due to its public blockchain. Dash blurs the as possible the path of the transactionthus protecting their anonymity.
- Compared to Bitcoin's single SHA-256 algorithm, Dash incorporates a total of 11 algorithms, collectively called X11 . This makes it much, much more difficult to penetrate the Dash network. Needless to say, Dash accepted as one cryptocurrency safer than Bitcoin .
- Dash's concatenated algorithms make it more user-friendly for mining compared to other cryptocurrencies. For example, GPUs run at around 30% less electricity than scrypt and 30-50% cooling. This translates into lower energy consumption and longer life of the computing configurations used for mining.
Current exchange rate: 1 Dash = $ 16, 69
Visit the Dash website
Unlike many other cryptocurrencies, which are forked directly from Bitcoin, Monero based on protocol CryptoNote . Monero doesn't have a feature-rich ecosystem like Bitcoin, but it does have some small improvements in Bitcoin.
- Monero uses CryptoNote encryption which makes it possible to use GPU and even CPU to extract Monero coins while in Bitcoin the extraction of CPU / GPU really useless. This means that there is a good chance that Monero can be mined using the desktop PC while a powerful ASIC dedicated to Bitcoin mining needs to be purchased.
- The details of the Monero block chain are obfuscated, which means that the transaction details are not publicly visible while, in Bitcoin, the publicly visible blockchain so that anyone can search for any transaction.
- Monero has a block generation time of suns two minutes, compared to Bitcoin's ten minutes. This results in faster transactions on the net.
Current exchange rate: 1 Monero = $ 16.75
Visit the Monero website
Dogecoin started in 2013 as a joke about the popular Internet meme "Doge", but today has a market capitalization of over $ 22 million . Don't be fooled by the name: it holds the record for most transactions per day for any cryptocurrency, with a peak of 2.5 times more transactions than all other combined cryptocurrencies in December 2013. Dogecoin has some advantages over Bitcoin:
- Dogecoin's freeze time of a minute compared to the 2.5 minutes of Litecoin and the 10 even longer minutes of Bitcoin. This makes the transaction faster than the two closest competitors.
- The total number of Bitcoins that can be produced is limited to 21 million, of which over 75% are already mined. This way, it can be increasingly difficult to mine a Bitcoin. Dogecoin not has limits of this type, so you can continue to mine Bitcoin indefinitely (this could also be a disadvantage for Dogecoin, as it is subject to inflation).
Generally, Dogecoin is used to suggest i online content providers instead of buying or selling products.
Current exchange rate: 1 Dogecoin = $ 0, 00023
Visit the Dogecoin website
Bitcoin Alternative Cryptocurrencies Increase decentralization
The way I like to see it, all these Bitcoin alternatives are quite a push for the notion of decentralized money compared to the competition. Each alternative cryptocurrency has its own set of merits and you are free to choose the one you prefer. The underlying technology may be different for some cryptocurrencies, but they all have the same motive: transferring control of money from governments and banks to people. In short, make money for people, from people .
Well, those were my views, but I'd like to hear your views on cryptocurrencies. So, be sure to play in the comments section below.