Four Cryptocurrencies to Buy If You Missed the Boat on Bitcoin, InvestorPlace
With bitcoin prices cracking $Ten,000, investors who were late to the spel should seek out alternative cryptocurrencies
By Josh Enomoto, InvestorPlace Contributor
Not known for providing conventional trading dynamics, bitcoin prices again shocked the world, this time exceeding $8,000. At this juncture, wij may be standing on a critical inflection point. For those that believe that cryptocurrencies are te a bubble, the present bitcoin prices are a flawless argument. But to crypto volgers, the dramatic rise only proves the viability of the digital markets.
I&rsquo,ve written extensively about cryptocurrencies, and I&rsquo,ve traded them spil well.
But even I have to admit that the meteoric skyrocketing of bitcoin prices is a shocker. I&rsquo,m not so astonished ter terms of nominal targets: a few months back, I wrote about the not-so-crazy case for $Ten,000 bitcoin. My InvestorPlace colleague, Will Ashworth, did the same. Rather, the speed at which bitcoin prices accelerated caught mij flatfooted.
Obviously, I stand with virtual currency volgers. My private view is that if cryptocurrencies were a bubble, it would have popped by now. While I get why investors are hesitant to leap onboard what emerges to many spil internet tokens, wij shouldn&rsquo,t underestimate how much information wij have available today.
If Google wasgoed around during the tulip-mania era, I doubt that so many people would have lost their life savings. And te the same logic, wij hear so many stories about bitcoin prices being unsustainable. This is a bull market that has had every chance to collapse.
Still, bitcoin prices today represent a considerable risk. Not too many can afford to plop down more than eight grand for a single coin. But if you feel that you missed the boat, don&rsquo,t worry! The following cryptocurrencies are much more reasonably priced, and have greater come back potential.
Cryptocurrencies to Buy: Bitcoin Specie
On Aug. 1, 2018, virtual-currency investors learned firsthand the strange beauty of a &ldquo,hard fork.&rdquo, Yes, I&rsquo,m sure the granular programming details are sublime for tech geeks. However, most folks recognize this date spil the day when they received &ldquo,free money.&rdquo,
Bitcoin Specie wasgoed born spil an offshoot currency from Bitcoin. Ter latest years, the enormous popularity surrounding cryptocurrencies meant that the original digital token could not satisfactorily treat transaction volumes. Bitcoin had to be upgraded, but spil a decentralized podium, this would require overeenstemming. That overeenstemming never came, resulting te a fresh toneel: Bitcoin Specie.
For Bitcoin holders prior to the hard fork date, they received an omschrijving unit of Bitcoin Contant. At very first, the offshoot currency soared to the moon, and then crashing down. Now, it&rsquo,s back up to the moon, or almost $1,200.
But more so than free money, Bitcoin Specie does indeed solve Bitcoin&rsquo,s onerous and costly transactions. One of the individual oddities that I&rsquo,ve experienced is that the original token doesn&rsquo,t scale its transaction cost. It doesn&rsquo,t matter if you want to send $1 or $1,000 of value &mdash, the cost is the same.
The other problem is that Bitcoin&rsquo,s transaction speeds are deathly slow. Several years ago, transactions were almost instantaneous. Now, it&rsquo,s not unusual to wait days for your payments to go through. It&rsquo,s maddening, which is why Bitcoin Contant could indeed be the next Bitcoin.
Cryptocurrencies to Buy: Ethereum
When Bitcoin very first emerged, early adopters viewed it spil an alternative payment mechanism. That obviously caught the attention of unscrupulous characters, who used the medium for illicit purposes, outside of prying government eyes. But what if a cryptocurrency could do more than just transfer value from one party to another? This is where Ethereum comes into play.
Underlining Ethereum is the &ldquo,clever contract&rdquo, concept. This is similar to all other contracts except for one significant difference: no intermediary party, such spil an attorney, exists. The terms of the contract are stored te a distributed ledger that is immutable. Furthermore, any contractually-bound payouts won&rsquo,t occur until the agreed-to terms are fulfilled. Artificial intelligence essentially governs this process, which ironically, people trust more than human intelligence.
Because Ethereum has a much broader scope than Bitcoin, it arguably has greater potential. Financial institutions and big banks are analyzing how the Ethereum blockchain can reduce risks with dealings involving untrustworthy parties. Others are exploring its use spil a supply-chain efficiency solution.
But the real reason why people are looking at Ethereum is the attractive entry point. Presently ranked at number two ter terms of market capitalization, Ethereum&rsquo,s total value is $35.Trio billion. A $100 billion market cap isn&rsquo,t unreasonable, considering this blockchain&rsquo,s potential. If so, this valuation would imply a $1,000 price tag.
Cryptocurrencies to Buy: Litecoin
If you check its official webstek, you&rsquo,ll detect that Litecoin is a &ldquo,peer-to-peer&rdquo, internet currency. Ter other words, Litecoin is just like Bitcoin, but without the toneelstuk or the scrutiny. And while it may sound dismissive to call Litecoin the silver to Bitcoin&rsquo,s gold, the programmers have no issues. Ter fact, their webpagina describes their cryptocurrency spil a complement, not a competitor, to the original digital token.
Don&rsquo,t get mij wrong: Litecoin has a number of awesome features aside from being relatively &ldquo,cheap&rdquo, at $70. Primarily, the transaction speeds are much swifter than its older brother, which is a massive overeenkomst. Reminisce, slow transactions were the primary catalyst for the Bitcoin Specie hardfork. Moreover, Litecoin has very reasonable transaction costs and purchasing costs from exchanges such spil Coinbase.
Still, I think the largest Litecoin driver is the price point. With Bitcoin prices going ballistic, Litecoin provides a psychologically lighter path to public integration. Would you rather pay one Litecoin to pay your utility bills, or 0.00853 Bitcoin?
More importantly, spil the Gen-Z demographic comes in the workforce, they&rsquo,re going to be interested ter virtual currencies. They&rsquo,ll consider Bitcoin prices way too onerous. But Litecoin at under $100 may be a overeenkomst too sweet to pass up!
Cryptocurrencies to Buy: Ripple
I don&rsquo,t think it&rsquo,s too much of a spread to say that most people bought cryptocurrencies to avoid the banks. Why on Earth, then, would it make sense to buy a virtual currency possessed by the banks?
The digital toke ter question, Ripple, is a harsh nuttigheid to crack. Not only is Ripple an utterly speculative voertuig (presently priced at 23 cents), it&rsquo,s &ldquo,theologically&rdquo, controversial. On one forearm, major financial institutions supporting the coin provides significant confidence and credibility. On the other forearm, it could be an Illuminati trapje, or something to that effect.
I personally view Ripple spil a fatter, &ldquo,badder&rdquo, SWIFT network. A decently scaled blockchain podium has proved effective te transacting value quickly and efficiently. Ripple is exactly that &mdash, a toneel that can meet the requests of tomorrow. Furthermore, banking institutions can&rsquo,t afford to sit back and let the blockchain technology overcome them. Ripple is their response.
At the same time, wij have to acknowledge the risks. A good portion of the crypto community will not trust Ripple, so integration is a problem. More critically, almost 39 billion of thesis coins are ter circulation. If Ripple hits $1, its market capitalization would exceed Bitcoin&rsquo,s by a broad margin.
It&rsquo,s a crapshoot, but one worth taking with your speculative money fund.
Josh Enomoto wields all the cryptocurrencies mentioned te this article.