After a rapid flight of fancy, the value of the bitcoin has fallen in the meantime. Slow transactions, exorbitant power consumption and the threat of regulation are raising increasing doubts about the future of the best-known crypto currency. But even central banks are interested in the technology behind it. One hopes for a great benefit, said the head of the European Central Bank (ECB), Mario Draghi. At the same time, new bitcoin alternatives with different properties are constantly being developed – now there are well over 1,000. If you would like to know more about other services that can analyse these currencies, you can check out our Cryptosuite Reviews articles and other tools that we talk about.
Six examples that are currently popular in the community:
Number two: Ether is the second largest crypto currency after Bitcoin. At present, all the Ethereum “coins” in circulation weigh around 99 billion US dollars. Ether is particularly well suited for so-called smart contracts. Contractually agreed payments flow automatically. For example, the holder of flight cancellation insurance can automatically receive a payout if a cancellation is registered in the air traffic database. The customer no longer needs to file a claim for damages and the insurance company no longer needs to examine the case. The principle is currently being tested in many industries.
The environmentally friendly one: Peercoins are considered a climate-friendly alternative to bitcoin, whose operation consumes more and more computer power – and thus electricity. The seriousness of the problem is illustrated by the example of Iceland: according to the energy company HS Orka, Bitcoin producers based there are likely to consume more electricity this year than all Icelandic private households combined. With peercoins, the ecological problem does not exist. Here the security of the network does not depend on the computing power of the participants. Peercoin, however, has not yet arrived in width. The environmentally friendly cyber currency is just 159th of the 1,500 or so crypto currencies with a market capitalization of around 125 million US dollars.
The favourite of banks: Ripple is already regarded by some crypto fans as a possible replacement of the so-called Swift system, which is usually used for payments between financial institutions. According to the Californian inventors, Ripple can handle an average of 1,500 transactions per second, with a single payment process taking about four seconds. Some large financial institutions such as the Spanish Santander Bank and the Swiss UBS are now taking advantage of this. The total value of all Ripple Coins was about 50 billion US dollars.
The machine currency: Thanks to digital networking, household appliances and industrial machines can increasingly act independently. For example, if the domestic refrigerator registers that milk is becoming scarce, it automatically reorders. Iota can come into play for the payment, because the crypto currency is particularly well suited for a large number of transactions with small sums. In addition, there are no costs for the transfers. With a total value of around five billion US dollars, Iota currently ranks tenth among the most important cyber-coins.
The Anonyms: The crypto currency Dash offers its users special discretion. Due to a special disguising technique, transactions in the blockchain cannot be tracked publicly – a welcome advantage for many. But critics warn Dash attracts criminals. Furthermore, the Dash developers were sceptical that the algorithm was programmed in such a way that a large amount of the cyber-coins initially flowed into their own pockets. The currency has already been renamed twice, partly because of criticism. With a total value of over six billion US dollars, it is nevertheless one of the most important currencies in the crypto universe today.
Law-abiding: The still very young crypto currency Cardano is regarded by many crypto fans as a source of hope, because their inventors claim to be able to react particularly flexibly to state regulatory regulations and to adapt. The issue of regulation has recently come to the fore. China, Japan and South Korea in particular are now taking restrictive measures against crypto currencies. But in Europe, too, they are increasingly coming into focus. This may be one of the reasons why Cardano has risen to the top 5 crypto currencies.