The future of cryptocurrency looks like an exciting one for investors. But will another contender knock Bitcoin off the #1 spot – and if so, which one?
Over the last year or so, investors have been given a real treat. Bitcoin rose steadily in mid-2017, then jumped to a massive all-time-high over the turn of the year, only to dip away in 2018. Now, Dimensions Network asks the question of whether another crypto will grab the top spot – and what investors can do to profit if that happens.
IT ALL COMES DOWN TO ADOPTION
The case for dominance in the cryptocurrency market is a simple one – Bitcoin is a household name, and until it, or another coin enjoys mainstream adoption, no one is going to quite know how the market will shape up.
NUMBER 1 FOR A REASON
Bitcoin will go down in history as the first ever crypto. But as a digital currency – and, more importantly, something that can be used across the world in place of FIAT – it’s perhaps not best placed to succeed. Transaction speed can be relatively slow compared to other cryptocurrencies on the market – however, that could all change when and if its Lightning Network is fully up and running. Faster payments would give it the performance it needs to go global.
THE FIRST CONTENDER: ETHEREUM
Ethereum – the current #2 – is driven by a completely different purpose: to be a platform for the next wave of applications. The vision for these Distributed Applications (dApps) will be that they’re free from fraud, downtime and interference from third parties.
So, how is this vision shaping up? Diehard Ethereum supporters will tell you that the cryptocurrency has only gone from strength to strength – the founders have even forged partnerships with Microsoft and the fruits of their labour took off in terms of global appreciation. It’s undeniable that the impact of "the flippening" would be massive.
THE SECOND CONTENDER: RIPPLE
On paper, Ripple is perfectly placed to make a huge impact on the world. Disrupting cross-border payments, and making the banking world work seamlessly, is something that financial institutions seem to be grateful for. In fact, XRP has seen its popularity and ambition lead to some impressive partnerships too. But, a big question mark still stands over the 55 billion XRP currently sitting in escrow and how that will affect its use.
ANY OTHER CONTENDERS?
If the cryptocurrency market has shown us one thing, it’s that anything can happen. And there’s plenty of smaller cryptocurrencies all vying for that top spot. For example, Litecoin enjoys many of Bitcoin’s benefits, and is cheaper and faster; while IOTA, and its ‘blockless’ distributed ledger, could also have something to say.
PLAN FOR THE FUTURE
It’s clear that whichever cryptocurrency is eventually crowned #1, the market is ripe for intelligent investors to make a profit. Which is where Dimensions Networks’ advanced derivatives will make a huge impact – the standard ‘buy low, sell high’ approach won’t cut it, and features, like Options and Futures, will give investors the kind of versatility that’s currently enjoyed on the stock market. Find out more about Dimensions Network and its advanced trading options today – we’re well on our way to becoming one of the most innovative exchanges on the market.