by Evie Harrison, blogger by choice. Find her on Twitter:@iamevieharrison
Most of us are aware of the incredible growth of Bitcoin in 2017. The success and hype around the currency was undeniable. To this day, Bitcoin stand to be the best-known currency in the market even though it is currently hovering at barely a quarter of its highest rate, i.e., $20, 000 in December 2017. The term “altcoins,” on the other hand, means all the alternative currencies that are not Bitcoins. And hundreds of altcoins were launched after the success of Bitcoin. Many different peer-to-peer currencies emerged in an attempt to replicate a similar rates of success.
To further understand the future of altcoins, it is fundamental to fathom the underlying features of cryptocurrencies. These are the digital assets that are designed to function as an exchange medium which makes use of strong cryptography to protect the financial transactions, transfers the asset certification and to keep a hold on the creation of supplementary units. It is a decentralized system and works by blockchain which is a distributed ledger technology. In layman terms, this technology keeps track of the location of each coin. Forgery is close to impossible, and it also prevents people spending the same coins more than once.
The blockchain became popular for its feature of economy-sharing. The ledger that keeps track of the flow of digital coins is also able to follow the usage of items that are shared such as the cars or real-estate assets. For instance, The AutoBlock that stands out in the digital market for their services in automotive exchange. Car enthusiasts negotiate on this portal and carry out their automobile transactions using its official currency.
The slow momentum of Bitcoins
Many pbservers believe that the boom of bitcoin was a once in a lifetime event and other currencies are going to suffer from prevalent skepticism around crypto-markets. Nonetheless, industry expert Tom Lee states that he expects altcoins to upsurge this year. According to him, these hold the potential to win against Bitcoin. This claim tends to become more believable as we notice the momentum of Bitcoins. Bitcoin has fallen around 70% since its high record of 20,000 dollars. It is surely going to prove of benefit to the alternative coins. There are different statements as to what currency will take the place of Bitcoins? Could Litecoin move to the top or will Ethereum replace Bitcoin with improvised use of blockchain technology?
Reliance on Bitcoin values
Different altcoins are plunging in such as the Ethereum, Ripple, Monero, and Dash. The value of these at present is close to the value of Bitcoin, but in future, it has the potential to increase as more people have started to invest in the alternative coins. They are more reliable and less prone to fluctuations, according to the evaluation of some market experts. However, due to the initial boom of Bitcoin, other altcoins are depending on its value. The digital market has to use Bitcoins for trading currencies owing to its compulsive influence in the market.
Is it decentralized?
One question that punches up now and then is whether the system is centralized in reality? Many existing companies such as Ripple, Block. One and Coinbase appear to be more centralized than decentralized. They operate like a regular business than a part of the movement to usurp any space.
Integration with the Internet
The objective that underpins all alternative coins is to integrate with the internet and make operations more smooth. Such an underlying role of the internet contributes fairly to the value of the altcoins. No wonder those who are still trading with Bitcoins show hesitation and some people are exchanging them in trusts such as the Bitcoin Investment Trust.
David Andolfatto, a researcher in the Federal Reserve Bank of St Louis, suggested the idea of the government launching its cryptocurrency. It will lead to an easy collection of taxes and also in the conception of a policy on disbursement with negligible risk of fraud or theft. A few other companies, like Facebook, can also rise to be a threat against Bitcoins. It facilitates 2.2 billion users across the globe, and it can easily launch its official currency. The example of Telegram raising 850 million dollars through its aggressive campaign is a proof that online garnering of money is possible for such portals.
Cryptocurrencies are subject to random fluctuations. Although for now, they depend on the values of Bitcoin, it is also true that Bitcoin has shown a history of abrupt fluctuations in the past. Those who know the industry can easily ride through waves. There are zero predictions in this field, and all information comes from mere speculations. Given this nature, we cannot presume that Bitcoin is soon going out of the picture. There is a chance that it will skyrocket once more. A wise move is to keep a close watch over the changing trends of this industry.
Above 800 cryptocurrencies are dead now and they hold worth less than one cent. On the whole, over 1600 altcoins took part in the digital industry. Some aspects of the industry make it increasingly dubious for certain investors and the fear of failure scares many business entities. The debate about decentralization and privacy of Bitcoin can affect its future. In the meantime, it is also true that the adoption rate of blockchain technology is also accelerating at a faster pace. The fact that companies have been able to collect up to 11.9 billion dollars is proof that we are heading towards a world where digital currencies will become an intensive part of transactions.
It looks like the future may hold some positive avenues for the altcoins due to their feasibility and stable values.