Cryptocurrencies have taken over the financial world at an unprecedented rate.
While in the genesis of virtual currencies, investors wondered if this alternative to fiat money would survive at all, at present the question marks in the industry are more about the scale of evolution.
Skeptics worry that the new force rising in the world of finance suffers from chronic volatility, is decentralized and is a convenient channel for money laundering.
Although many companies have banned the use of digital currencies, the rapid growth and widespread adoption of technology has provoked large global corporations to look in that direction.
Among the companies involved in blockchain technology are names such as Facebook, JPMorgan, Microsoft, Shopify, Tesla and many others.
But which cryptocurrencies dominate the market?
Here is a list of the largest digital currencies to watch for in 2021 by size of their market capitalization.
Bitcoin – 156.52 billion USD.
Bitcoin became the first cryptocurrency in 2009, and has so far been the face and flagship of the entire market. The technology has eliminated the intermediary in foreign exchange transactions, replacing it with innovative blockchain technology.
About 75% of all bitcoins pledged have already been mined / excavated. This means that the price of the asset should become more stable in the near future and eliminate the biggest irritant for investors – its unprecedented volatility.
Еthereum – 17.50 billion USD
Debuted long after the advent of bitcoin, etherium joined the cryptocurrency market in 2015. While bitcoin offers a currency based on a peer-to-peer system, etherium specializes in so-called smart contracts (where a user can set specific conditions for to start a transaction).
Ethereum has a wide field of application, attracting users who want to use virtual currencies for more than just financial transactions.
XRP – 9.80 billion USD
Ripple is a cryptocurrency that never intended to be an alternative to cash. The system is used by corporate institutions rather than individual investors.
Sending money from one wallet to another takes seconds, but unlike competitors, the XRP currency is much more centralized, as Ripple Labs controls the availability and circulation of XRP.
Bitcoin Cash – 5.76 billion USD
Bitcoin Cash, sometimes called Bcash, is a currency that split from bitcoin in 2017. Then developers provoked the separation of blockchain technology behind bitcoin, which led to the creation of the new currency.
Bitcoin Cash applies lower transfer fees and faster transaction time compared to bitcoin. This makes the virtual currency popular with investors.
Bitcoin SV – 5.51 billion USD
Bitcoin Satoshi Vision is one of the new players on the market. Ironically, the cryptocurrency emerged after splitting the Bitcoin Cash blockchain. The developers behind BitcoinSV have stated a desire to restore the original Bitcoin protocol instead of continuing with the blockchain system of Bitcoin Cash. The key difference between Bitcoin, Bitcoin Cash and BitcoinSV is the block size. While Bitcoin Cash has a block size limit of up to 32 MB, BitcoinSV sets a four times the size limit per block of the blockchain system – 128 MB.