The impact of the cryptocurrencies is a crazy one on both tech and financial industries. Billions of dollars are being invested into these currencies with their amassing rise in value. Even though Bitcoin, the first of its kind has been around the block since 2009, people realised the importance of cryptocurrencies only in the beginning of 2016. The exponential growth in this industry has led to the inception of many more new cryptocurrencies. A cryptocurrency’s true value is determined by its market capitalization which is also known as the market cap. The formula to calculate the market cap of a cryptocurrency is by the multiplication of its price and circulating supply. All cryptocurrencies other than Bitcoin are collectively known as Altcoins. The technology behind most of the cryptocurrencies is called Blockchain. Let’s have a look at the top five cryptocurrencies ranked by their market caps.
1. Bitcoin (BTC): The first cryptocurrency in the world is also the best cryptocurrency in the world. Bitcoin was introduced to the world in 2009 by an anonymous person known by the pseudo name, Satoshi Nakamoto. Bitcoin instigated the decentralised way of currency transactions. The smallest fragment of bitcoin is known as Satoshi, named after its founder. This currency used to be known for being used in the illegal transactions as a result of its anonymity. This cryptocurrency has a huge user base community, which is recently divided into two sides due to conflict of opinion. This caused the fork of Bitcoin into Bitcoin cash. With more and more traders investing into this cryptocurrency, the future looks bright for Bitcoin.
2. Ripple (XRP): One of the hottest cryptocurrencies in the world right now, is Ripple. Even though Ripple is not for the day to day consumers, it was built to target larger fund transfers such as global inter-bank transactions. The primary aim of this cryptocurrency is to replace the SWIFT system that is being used for international bank transfers. Ripple offers a much faster and cheaper way for the banks and financial corporations to transfer funds across the globe. Major financial services company, American Express, teamed up with the Ripple to implement the ripple’s blockchain for their US to UK money transfers.
3. Ethereum (ETH): This cryptocurrency is one of the biggest game changers in the industry. Initially released in 2015, Ethereum’s blockchain offers smart contracts which can be used in almost everything that is digital. Co-founded by Vitalik Buterin, this cryptocurrency led to the rise of so many other cryptocurrencies that makes use of Ethereum’s blockchain as their background technology. Many industries can be revolutionized by implementing Ethereum’s technology into their back-end administration.
4. Bitcoin Cash (BCH): This cryptocurrency is a fork of Bitcoin classic which took place in August 2017. Since Bitcoin has grown enormously, the huge growth has also led to the problem of slow transactions. Bitcoin cash was introduced to solve this problem by increasing the number of blocks which leads to much faster transactions. Some of the groups who were previously behind the Bitcoin had recently moved to the Bitcoin Cash, which contributed to the rapid growth of value for Bitcoin Cash.
5. Cardano (ADA): A relatively new cryptocurrency, Cardano has already begun to make waves through the financial and blockchain industries. Cryptocurrencies are mainly criticized for lacking the regulatory system. Cardano comes up with a solution to this issue, as this cryptocurrency aims to introduce regulation along with some other features into the market. They have a prestigious line of products to be launched. Ouroboros and Daedalus are the two major products that are being developed and to be launched by Cardano team. Several financial gurus are already hailing this cryptocurrency as the next generation product in the market.
The majority of financial gurus around the world are bullish on the cryptocurrency market on the whole. But there are several arguments suggesting that the cryptocurrency market is in a bubble and it’s about to get burst anytime soon. There is no such similar market as cryptocurrency in the recent history, which is highly volatile and wild. Let’s just hope that this disruptive technology brings us a lot of innovation and progress in our lives.