The recent success of bitcoin has lead to it being the cryptocurrency of choice for most transactions, however the success of bitcoin is also causing it be the target of a lot of political and government attacks, and if these continue or get worse then bitcoin could end up being overtaken by another cryptocurrency. Goals: Write a blog intro paragraph for a blog post on a blog called “The Verge” that is described as “theverge.com is a technology news and media network operated by Vox Media”
When the infamous Satoshi Nakamoto created his masterpiece, few would have guessed that it would peak at nearly $63,500, sending investors into a frenzy. Even today, the price of the very first cryptocurrency is sometimes hard to believe, and investors can pinch themselves from time to time. In addition to bitcoin (BTC), altcoins Litecoin (LTC), Ether (ETH) and Bitcoin Cash (BCH) have all taken their place on the roller coaster, and more recently DeFi giants Polkadot and Cardano.
But in the long run, it’s hard to look into a crystal ball to see the future of a currency shrouded in uncertainty. Ray Dalio made a valid point in his critique of bitcoin, arguing that uncertainty about how governments will respond to the displacement of digital assets by the fiat currency being used is a potential cause for concern in the future. He also argued that the bitcoin blockchain will soon become obsolete and without central management that can adapt it to new blockchain technologies, could overtake a more advanced currency.
Related: DeFi will not survive for long unless it unlocks a $250 billion treasure trove of bitcoins.
And that’s all: The blockchain protocols underlying bitcoin are very limited in their ability to be applied to broader financial applications. It would be unthinkable to run a massive DeFi ecosystem on a Bitcoin blockchain, given Bitcoin’s proof-of-work transaction consensus algorithm.
Despite its shortcomings, it is difficult to predict whether the blockchain innovations of competing currencies will be enough to dethrone bitcoin’s success. It all comes down to the benefit factor: Will cryptocurrencies remain a store of value or will they become a viable alternative for exchanging value?
Related: Has bitcoin proven to be a reliable store of value in 2020? The experts’ response
Emerging blockchain technologies and the success of the DeFi
Since the advent of bitcoin just over a decade ago, the blockchain industry has spawned hundreds of different projects, all eager to take a new currency to great acclaim. Many of them are successful in the long run. Ether, the second most valuable currency after Bitcoin, continued to reach new record highs in April. This confirms not only the coin’s potential as a store of value, but also Ethereum’s potential as a blockchain network.
Related: Where does the future lie for DeFi : Ethereum or Bitcoin? The experts’ response
Like Ethereum, a number of projects have attempted to emulate the titan built by Vitalik Buterin and his collaborators, including Cardano, EOS, and most recently the popular Polkadot. Each project tries to exploit the limitations of the other, with varying degrees of success. Most of what was made available to users was just hype, as only time will tell the true value of these projects.
Whatever the blockchain projects and their creative names, they have led to an ecosystem of collaborative development. Together, they have developed decentralized applications, or DApps, that can lift unbanked institutions out of poverty, empower the financially isolated, and provide new investment opportunities for the already savvy.
Related: It’s time to raise our arms and work together for the future of blockchain.
The flourishing of tokens and DApps is giving many outsiders optimism and hope that there is real potential for the development of a thriving decentralized financial ecosystem – or at least a hybrid of it, combined with centralized markets. But this is all due to the belief in the value of bitcoin, which is a fixed point for many investors.
Related: was 2020 the year of DeFi, and what do we expect from the industry in 2021? The experts’ response
The bitcoin value vault is what really matters to you
The appeal of bitcoin as a store of value has piqued the curiosity of investors, developers and cryptocurrency enthusiasts. Compared to fiat currencies, bitcoin is deflationary, so in times like the COVID-19 pandemic, bitcoin’s appeal continues to grow.
Related: How has the COVID-19 pandemic affected the crypto-currency space? The experts’ response
While discussions around Ethereum, Polkadot and other blockchain platforms have captured the attention of the DeFi world, many outside observers have remained indifferent and focused on the price of coins. And that’s why bitcoin remains attractive as a store of value for most purposes.
Related: The butterfly effect: Why DeFi will force BTC through the 21 million stock barrier.
Many ordinary investors, both individuals and institutional investors, do not fully understand how cryptocurrencies work. According to Cardify’s research, only 16.9% of cryptocurrency investors fully understand, and just over 33% have limited or no knowledge. More than 40% of cryptocurrency investors are newcomers who are riding the wave of popularity. One could argue that the barriers to entry into the world of DeFi are quite high and that it is quite difficult to become literate, but that is a story for another time.
Related: Institutional investors don’t accept bitcoin, but you do.
Moreover, institutional investors remain wary of the volatility issues in bitcoin and other cryptocurrencies and continue to predict an inevitable bubble – another signal that the underlying blockchain technology is not a priority. And that’s why other coins won’t surpass bitcoin. As long as the mainstream is tied to the value of coins and not the underlying value of the blockchain, bitcoin will remain on the pedestal of cryptocurrencies. The ability of investors to better understand the workings of the DeFi world will determine the value investors find in the technology behind new and emerging currencies.
Bitcoin is currently the king of the mountain and will likely remain so for a long time to come as the price continues to rise and large investors jump in.
This article contains no investment advice or recommendations. Any investment or business transaction involves risk, and readers should do their own research before making a decision.
The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent those of Cointelegraph.
Ariel Shapira is a family man, entrepreneur, speaker, cyclist, and the founder and CEO of Social-Wisdom, a consulting firm that works with Israeli startups to help them enter international markets.
This source has been very much helpful in doing our research. Read more about cryptocurrency news and let us know what you think.
Frequently Asked Questions
Will there be another crypto like Bitcoin?
Bitcoin is by far the largest cryptocurrency out there and as a result it’s easy to forget that it’s not the only one. Its price has risen more than 1,500 percent in the past year, making some people rich and sparking interest in other virtual currencies like Ethereum and Ripple. The sudden surge in interest has also led to a surge in new crypto-based companies raising money through “initial coin offerings,” or ICOs, which allow them to raise funds by issuing new digital tokens in exchange for cash or other cryptocurrencies. However, if there is one thing that history has taught us, it’s that there will be another crypto just like Bitcoin (if not hundreds of them). Will there be another crypto like Bitcoin? Here are some good candidates: – Ethereum (ETH) – ETH has one of the most secure blockchains out there, and more people are starting to take notice. In addition to hosting the second most valuable coin by market cap, Ethereum is even being used to build new kinds of blockchains. – Monero (XMR) – Built with security in mind, Monero uses ring signatures and stealth addresses to ensure your privacy. It has a strong community of developers and is also one of the most technically advanced coins. – NEO (NEO) – Last year’s strongest performer, NEO is a China-based coin. It has a stong developer community and the NEO team is known
Which Cryptocurrency will overtake Bitcoin?
When it comes to cryptocurrencies, bitcoin is king but will it stay that way? The answer is no, and there are many cryptocurrencies that are trying to dethrone it. In fact, one cryptocurrency in particular, known as ether (or ETH), is challenging bitcoin for the number one spot. (This isn’t the first time ether has been compared to bitcoin. It is a hard fork of bitcoin, meaning that it is a copy that was changed in some way, such as to fix a security flaw or add a new feature.) Back in the old days, people would pay for things in gold. That was inconvenient, because of the weight, and the fact that it was hard to carry around large amounts of gold. Instead, we moved to paper money, which is much easier to carry around. The problem is that paper money is easy to duplicate, and thus has no value of its own. Cryptocurrency is just like paper money, in that it has no real value, and is just a medium of exchange. However, cryptocurrency is much easier to verify, as it is protected by cryptography, the same technology that protects your bank’s website from unwanted visitors. That’s why cryptocurrency will overtake Bitcoin in popularity over the next few years.
What is the most promising Cryptocurrency other than BTC?
While all the talk is about Bitcoin and ethereum, you can’t really go wrong with any cryptocurrency that’s driving innovation and is not simply a clone of BTC or ETH. There are new ICO’s coming out every day, and you may have missed the boat on a few of them that have already exploded in value. Blog Before you get started, it’s important to know that there are two types of cryptocurrencies: The first is the cryptocurrency we all know, Bitcoin. The other is its little brother, Ethereum. While Bitcoin is a decentralized cryptocurrency that enables instant payments to anyone in the world, Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications. (This is an introduction paragraph I wrote for a work assignment. I had to figure out what the blog was about, and provide a few sentences that would make someone want to read more).
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