How to compare bitcoin and its current price with other cryptocurrencies
Although it is probably the digital currency that you know the most, or that you have heard the most about, there is a whole universe of “altcoins” or alternative currencies to Bitcoin, which are based on very innovative proposals within the field of technology. Knowing how to compare the value of Bitcoin and the current price of these cryptocurrencies that are presented as an alternative is essential, since the universe of digital currencies is increasingly growing and becoming more complex, and is no longer limited only to the option of acquiring the first coin to hit the market. Below we tell you why they are important, what the main ones are and some examples of the youngest ones.
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FAR FROM BEING SIMPLE CURRENCIES
Bitcoin, like the rest of cryptocurrencies, is not just a currency as we know money; In fact, it has become so famous because it is a movement, a revolution in the world of finance . Its appearance challenged the traditional notion of money and currencies, and proposed a decentralized financial system , totally opposite to that on which fiat currencies are based. But what really sets Bitcoin apart is its community: a global group of enthusiasts, developers and advocates who believe in a financial future without intermediaries, more democratized and accessible to anyone. This community has been instrumental in maintaining Bitcoin’s relevance and the highly coveted current price it enjoys, even as it faces challenges and competition.
THE ART OF VALUING CRYPTOCURRENCIES
Valuing a cryptocurrency is an art rather than a science . While Bitcoin has its legacy and community behind it, other cryptocurrencies offer innovative technical solutions, strategic partnerships or specific market niches. These are just some of the factors that characterize them and that you should keep in mind when evaluating one of them:
- Technological innovation: What problem does a specific cryptocurrency solve? For example, Zcash and Monero offer more private transactions than Bitcoin.
- Ecosystem and Development: A cryptocurrency backed by an active development team and an engaged community has a better chance of thriving above the rest in the world of digital currencies. Ethereum is a good example, since thanks to its vibrant community of developers it has created dApps and solutions never before known.
- Integrations and partnerships: Cryptocurrencies that integrate with other platforms or form strategic partnerships can see an increase in their value and utility. Chainlink, with its oracles, is an example of this.
THE MOST POPULAR ALTCOINS
As you already know, Bitcoin is the best-known cryptocurrency, but there are many ‘altcoins’, also known as alternative currencies, that have gained popularity in recent years and have characteristics that you will not see in other cryptocurrencies:
- Ethereum (ETH): Unlike Bitcoin, which is primarily a digital currency, Ethereum is a platform that allows the creation of decentralized applications. Its token, Ether, is used to operate within this platform.
- Ripple (XRP): Ripple focuses on facilitating cross-border transactions for banks and payment systems. Its token, XRP, acts as a bridge between different currencies.
- Litecoin (LTC) – Often described as Bitcoin’s little brother, Litecoin offers faster transaction times and a different mining algorithm.
- Cardano (ADA) and Litecoin (DOT): Both cryptocurrencies focus on offering more scalable platforms.
EMERGING CRYPTOCURRENCIES: THE NEW KIDS ON THE BLOCK
And although Bitcoin was the pioneer, it is now common to find many emerging cryptocurrency options every day that are at the forefront of the best technology. We highlight the following:
- Tezos (XTZ): With a focus on on-chain governance, Tezos allows you as the holder of its tokens to vote on upgrade proposals, ensuring smooth evolution.
- Cosmos (ATOM): Dubbed “the Internet of blockchains”, Cosmos seeks to solve scalability and interoperability problems between different blockchains.
- Algorand (ALGO): With its pure proof-of-stake consensus, Algorand promises fast transactions and a high level of security.
As you see, the world of cryptocurrencies is much more than Bitcoin or its current value, which is why it is essential that you are able to look beyond the price of digital currencies. The technology, vision, and community behind a coin can be much more valuable indicators of its long-term potential. In this ever-changing landscape, continuing education and curiosity are your best allies.