Technology

What Is the Next Big Cryptocurrency?

When an individual or a group of people under the name Satoshi Nakamoto released the paper called Bitcoin: A Peer-to-Peer Electronic Cash System back in 2008, the world was introduced to the concept of cryptocurrency. In 2009, the very first cryptocurrency, also known as Bitcoin was released as the open source software alongside the blockchain technology it was based on.

However, no one really knew what cryptocurrency was all about or what kind of potential it had until 2013. That’s when all the hype began. Ever since then, the cryptocurrency market had its share of glory and controversy.

Today, there are thousands of different cryptocurrencies on the market with Bitcoin still reigning supreme with 40% of total market share, even though the “oldest” cryptocurrency had its ups and downs, to put it mildly. Bitcoin made some people very rich while it also made a lot of people lose a lot of money. Now, investors are more vigilant when it comes to investing in cryptocurrencies and are patiently waiting for the next big thing. With that in mind, what is the next cryptocurrency? Let’s find out.

A brief history of the cryptocurrencies

As mentioned before, Bitcoin and blockchain technology were introduced back in 2009. The idea behind them was to create a decentralized public ledger designed to make peer-to-peer transactions over the Internet seamless, fast and without any regulations by governments or central banks.

This made a lot of people interested in the idea itself. After Bitcoin, thousands of new cryptocurrencies have entered the market, with some providing new blockchain technology developments, such as Ethereum with its smart contracts or Ripple with its fast transactions. Still, numerous other cryptocurrencies haven’t been able to hold investors’ interest or perform well on the market.

In any event, the crypto market was flourishing at a rapid pace. However, the lack of governance and regulation quickly turned out to be a major factor in the market’s instability. If you can single out one disadvantage that made the cryptocurrency market infamous, it would be the extreme volatility that is still more or less omnipresent on the market.  

How to spot the next cryptocurrency?

People are more interested in the blockchain technology behind cryptocurrencies than the currencies themselves. So far, new blockchain technologies have proven to have vast potential but are still being developed.

Many ICOs (Initial Coin Offerings) only have a whitepaper on what they plan to do and are looking for investor support, in order to get started. If you’re interested in investing in the next cryptocurrency, you should take the time to research the people behind the project. As an example, the next cryptocurrency may not be a revolutionizing new technology but a solution to the existing problem on the cryptocurrency market.

Companies such as Anchor AG are striving towards developing such a solution that will stabilize the market, tone down the volatility and help the cryptocurrency market win back the trust from investors and businesses alike by using a two-token system that will improve security and stability of holdings. What’s more, they have taken a step further to propose a solution for systemic issues in financial markets in general by designing a monetary value measurement standard based on a proprietary mathematical algorithm called the Monetary Measurement Unit (MMU).

As mentioned before, the idea behind Bitcoin is what made it popular, in the first place. Therefore, it’s difficult to say what will make the next cryptocurrency stand out, but you shouldn’t underestimate the idea behind the concept.

Why the lack of trust, to begin with?

Instability and high volatility are not the only factors that made people lose their trust in cryptocurrencies. Lack of regulations makes the market prone to scams, hacks and other security issues. Even though the blockchain technology was designed so that it couldn’t be tampered with once the transaction is finalized, it turned out to be a double-edged sword in some cases.

For instance, if someone was to hack your e-wallet and transfer your currencies to their wallet, the transaction is finalized and can no longer be altered. Without anyone to regulate these transactions, there’s no one to turn to and thus nothing you can do about it. Another reason why people lost their trust in cryptocurrencies is that a cryptocurrency can simply stop working and you’d lose your entire investment.

If you decide to invest in a project but the project never gets off the ground, you have only yourself to blame. In addition, exchange sites that allow users to buy or sell cryptocurrencies also hold information about their wallets and private keys. Running away with that information can prove to be quite lucrative, especially since there are no regulations to stand in the way.  

So far, the cryptocurrency market is experiencing its ups and down. However, just because things seem difficult at the moment, it doesn’t mean that the market will remain in such a state forever. Cryptocurrencies, in general, have the potential to change the world and the blockchain technology already promises to revolutionize countless systems. It only remains to be seen how the market will continue to progress further.

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