In mid-August 2021, the total market value of all cryptocurrencies exceeded $2 trillion, with Bitcoin alone making up 44%. While the currency has climbed from humble beginnings to sky-high values, it has also experienced many bumps along the way. The ‘HODL’ (hold on to it for dear life) philosophy has gained popularity with people with faith in the currency’s future. This approach to cryptocurrency investing allows investors to see their investments grow without losing hope.
Bitcoin
Whether you have heard of Bitcoin or are just interested in how it works, the financial world has been buzzing about the new currency. The price of Bitcoin and other cryptocurrencies is extremely volatile and some experts call it speculation. As more people buy and sell these cryptocurrencies, the price is rising. However, the recent price crash has seen many people sell their coins, driving the price even lower. Even NFL star Odell Beckham Jr. has had his salary cut in half due to the recent price plunge.
The technology behind Bitcoin is decentralized, and the currency is part of a database called the blockchain. This blockchain is made up of blocks of information pertaining to each Bitcoin. Each Bitcoin has a unique digital code, making fraud nearly impossible. Besides being decentralized, this technology allows users to transfer money without third-party involvement. Ultimately, these currencies are used to make online transactions safe and fast. And since the first cryptocurrency was introduced in 2009, there have been several innovations and new uses for them.
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Zcash
The ECC, or Electric Coin Company, intends to make radical changes to the Zcash cryptography to improve its security and privacy. This may require a new blockchain and protocol, and the effort required to maintain ZEC’s value may be worth it in the long run. If it is successful, this new blockchain will solve a fundamental issue: the fact that too few transactions can be made in private. While these changes are unavoidable, they will help the Zcash cryptocurrency remain valuable.
The co-founder of Zcash, Zooko Wilcox, is one of the most controversial issues surrounding cryptocurrency. Its “founders’ reward” is valued at almost $300,000 a month. Wilcox’s disclosure of Zcash’s financials at the Zcon0 cryptocurrency conference in Montreal brought this controversy to light. Wilcox earns approximately 2,033 ZEC per month, which amounts to $3.6 million in a single year.
Litecoin
Litecoin was released as an open-source client for GitHub on October 7, 2011, and its network went live five days later. During the past year, it has rapidly increased in popularity and merchant acceptance and has consistently been in the top ten cryptocurrencies by market capitalization. The Litecoin network is constantly upgraded, and its creator Charlie Lee has dedicated his time to developing it. Litecoin was designed to be faster than Bitcoin, and its Lightning Network sped up transactions.
Litecoin uses blockchain technology to operate a decentralized payment system free of government control. This makes transactions between two Litecoins much cheaper. Its finite supply means that its price will rise and fall around supply reductions. In periods of high appreciation, Litecoin has kept up with Bitcoin. Litecoin is also widely used as a means of payment and is traded on major cryptocurrency exchanges such as Kraken.
Litecoin Cash
The latest Litecoin Cash fork is causing quite a stir in the crypto space. This cryptocurrency utilizes the SHA256 Proof-of-Work blockchain algorithm and offers a variety of tools for mining. As of this writing, the cryptocurrency wallet is available for Linux and Windows users. The fork is also causing an uptick in the price of Litecoin. Those who have invested in this new coin should be cautious about attempting to mine it on their own.
On Jun 20, 2022, Litecoin Cash was mentioned in eight out of the first 1,871,720 social media posts. It was mentioned by 1 unique individual. It was ranked #1,838 in terms of most mentions and activity. According to Coinbase, Litecoin Cash is the 1279th largest cryptocurrency by market cap and trades only on YoBit and TradeSatoshi exchanges.
Ripple
Besides being a cryptocurrency, Ripple is also a real-time gross settlement system and a currency exchange network. Founded by US-based technology firm Ripple Labs, the Ripple network is designed to eliminate the need for intermediaries and facilitate instantaneous payments. The currency is now used for remittance, payments, and trades among financial institutions. Interested in learning more?
The Ripple system works in a similar fashion to a blockchain, but instead of having one central network, it utilizes multiple nodes for processing transactions. A transaction is created in ripple and is sent to a shared public database, where it is verified by validating servers. The network then enables the recipient to receive and send the currency. The recipients of the transaction are not required to have the Ripple cryptocurrency.