Virtual currencies are very popular among both individual and institutional clients. The topic generates a lot of excitement and interest in the media. Which cryptocurrencies are currently on top?
Most popular cryptocurrencies
In just seven years, cryptocurrencies have multiplied to 4 times more than the amount of traditional currencies. Since these currencies do not require authorisation, anyone can theoretically create their own cryptocurrency. Many projects have achieved success, however, many fail.
The success of bitcoin triggered substantial interest in the virtual world of cryptocurrencies. BTC debuted in 2009, based on blockchain technology, namely dispersed database. It is the most recognisable cryptocurrency and the symbol of the virtual currency market. Although many new products have been developed since then, bitcoin remains at the forefront. It is still unknown who the creator is. It is widely believed that Satoshi Nakamoto is the father of bitcoin. However, it is undetermined whether there is only one author behind this pseudonym or if others were involved.
The history of this cryptocurrency began in mid-2015. Like bitcoin, it uses blockchain technology. Both ethereum and bitcoin transmit the cryptocurrency itself, but only ethereum enables the creation of so-called Smart Contracts, algorithms designed to perform specific tasks. This includes the distribution of funds among shareholders during the accumulation stage for a given project in a process called Initial Coin Offering. As a result, ethereum can facilitate investment or crowdfunding.
The company Ripple, which created every unit of this cryptocurrency and is its sole distributor, opted for a technology other than blockchain. In addition, it aims to cooperate with banks and financial institutions. In the case of Bitcoin or Ethereum, we are dealing with mining, a process that can be done by both companies and individual users. Full Ripple resources have been set at 100 billion units.