Cryptocurrencies are the latest way in which tech is revolutionizing personal finance. Each unit of cryptocurrency is essentially a unique block of code which allows the exchange and verification of a given currency without the need for centralization in the form of a bank or other institution. Starting with the humble beginnings of Bitcoin, cryptocurrencies have evolved into an actual economic force as more people and businesses adopt them and exchange them like any other currency. Below are the three most promising cryptocurrencies for potential investors or those who wish to take part in the future of money itself.
Created in 2008 by Satoshi Nakamoto, Bitcoin is the standard of cryptocurrencies. Since its inception, Bitcoin has grown to a price of over $4,000 for a single unit, a considerable leap from its early days when 10,000 of them were famously used to buy two pizzas. Over its relatively short lifespan Bitcoin has experienced many bubbles and subsequent bursts, but its incredible resiliency over time, as well as its position as the most accessible cryptocurrency, make it a solid investment.
Vitalik Buterin, a programmer and cryptocurrency writer, created Ethereum after realizing the potential of cryptocurrency infrastructure while working with Bitcoin. Ethereum is more than a currency and, instead, acts as a distributed computing platform. The way it works is by having the code that makes up the currency also be executable code in which one can create their scripts and apps, all of which would be available under a public license. The potential for Ethereum to revolutionize not only currency but the internet and computing in general have driven, and continue to drive, up the price of the individual units at a rapid pace.
Litecoin was created as somewhat of a partner currency to Bitcoin with the intent of taking the model of the standard cryptocurrency and improving upon it to facilitate faster and less costly transactions. Litecoin has achieved its goal of doing so and, due to quick adoption by the cryptocurrency community, has reached a current market cap of nearly $2.4 billion since its creation in 2011.
Although there are many options for investment when it comes to cryptocurrencies, these three, in particular, have shown a unique potential for growth as well as application. The market is met with the arrival of new currencies seemingly every day, many of which are merely a proof of concept or an attempt to line the pockets of their respective founders. Bitcoin, Litecoin, and Ethereum, however, have risen above the current chaos of the cryptocurrency market and make for a strong choice for both long and short-term investors.