While Bitcoin prices are up to the roof, let's look into the other digital currencies. What are the 5 Most Underrated Cryptocurrency Assets now?
AtoZForex - Bitcoin is a cryptocurrency whose name is ringing in everybody’s ears these days. Back in July 2016, the value of one Bitcoin was around $700 USD. Welcome to July 2017 - Bitcoin is now valued at around $2700 USD! Bitcoin isn’t the only cryptocurrency out there.
Ethereum has also been making waves recently. As of July 26th, 2017, It’s currently valued at around $200. This is up from one unit being valued at less than $1 USD at the beginning of 2017! Although its value isn’t as high as that of Bitcoin, Ethereum is becoming increasingly popular as highlighted by the recently held Ethereal Summit. It was a lavish melting pot of all things cryptocurrency related, with a cultural theme.
Before we get started, it is necessary to first define what a cryptocurrency is. A cryptocurrency is a digital currency that uses various cryptographic techniques to make it more secure. The transactions of conventional currencies are stored on a central server, which poses a privacy threat to users whose personal information can be traced back to them.
This is made easier since information is stored in just a few locations. If a hacker manages to figure out where this data is stored, then it could be possible he/she might be clever enough to pull off a heist of personal banking information such as your credit card information.
While this centralization is great for tracking illegal activity, criminals can maliciously use this characteristic of the conventional currency system to ultimately commit offenses such as identity theft if they are clever enough.
Cryptocurrencies, on the other hand, make use of blockchain technology. With blockchain, the records of transactions are stored on several different computers. These transactions are also cryptographically protected which results in a more secure system.
While Bitcoin and Ethereum seem to be leading the cryptocurrency scene, there are some other underrated cryptocurrencies on the market which you may not have heard of. Let’s highlight some of them!
Before We Begin
Before we begin our discussion about 5 Most Underrated Cryptocurrency Assets, let’s talk about some of the terms you should be familiar with before moving on.
Market capitalization refers to the total dollar value of a company’s outstanding shares. This value is useful for determining a company’s worth or potential.
Cryptography alters data in such a way that it is not readable to person without the correct level of clearance to access the data.
An address in the context of cryptocurrency is an identifier which allows for transactions to be directed between the correct entities.
I think it’s worth pointing out here that while Bitcoin is anonymous to a point, where a transaction can not be traced back to our name, it is not fully anonymous.
Transactions can be traced back to a user’s address (identifier) which means that if someone were able to link that identifier to a particular person, then the anonymity of a group of transactions could be unraveled.
Many of the other cryptocurrencies on the market try to resolve this, as do many on our list below.
A masternode is a component in a cryptocurrency network which carries out a specific function. Hosting a masternode means that you will be rewarded in the particular cryptocurrency the masternode is a part of.
5 Most Underrated Cryptocurrency Assets
Now that we have covered our bases, let’s take a look at the 5 Most Underrated Cryptocurrency Assets.
Currency Code: DASH
End of 2016 Market Capitalization: $70 675 107 USD
Price, end of 2016: $14.42 USD
Dash is opening u the list of 5 Most Underrated Cryptocurrency Assets. This cryptocurrency is an up and coming cryptocurrency with a market capitalization of $70 675 107 at the end of 2016. Dash is held in high esteem due to its masternode architecture and use of Darksend.
Darksend masks transactions, making it more difficult to trace transactions carried out using Dash.
Currency Code: XMR
End of 2016 Market Capitalization: $133 545 372 USD
Price, end of 2016: $13.50 USD
Monero rounded out 2016 with a market capitalization of $133 545 372 USD. Monero makes use of the CryptoNote protocol which some view as being superior for ensuring that transactions using Monero are as protected as possible.
Monero’s addresses are also encrypted which means that it is difficult to do any kind of tracking of the participants in a transaction.
Currency Code: LTC
End of 2016 Market Capitalization: $149 142 004 USD
Price, end of 2016: $5.55 USD
Litecoin ended 2016 with a market capitalization of $149 142 004 USD. Litecoin’s blockchain is capable of handling a higher volume of transactions than Bitcoin which means faster transaction confirmation time for merchants.
Currency Code: XRP
End of 2016 Market Capitalization: $206 189 522 USD
Price, end of 2016: $0.006310 USD
Ripple is geared toward being a means of converting between different currencies. It rounded out 2016 with a market capitalization of $206 189 522 USD. It allows banks to quickly send international payment, allowing for cheaper, faster global payments.
Currency Code: FCT
End of 2016 Market Capitalization: $25 492 787 USD
Price, end of 2016: $2.91 USD
Although Factom’s unit of currency (the factoid) low in value, the Factom network is set up in such a way that it can be extended to other applications. For example, governments and schools can use the Factom blockchain technology for secure, redundant data storage. The system could even be applied to medical records, voting systems, and various legal applications.
Factom places a strong emphasis on providing proof of transactions. Factom ensures that it is made clear that a transaction occurred at a particular moment in time. This is why it would useful for processes such as voting since it would be almost impossible to forge voting records.
Although cryptocurrencies are met with an attitude of distrust by many, they represent a safer, more efficient way of handling payments and will probably continue to gain traction as time passes.
Moreover, blockchain technology has several applications outside of currency. The development of cryptocurrencies will only help to expand the horizons for blockchain technology. This could ultimately benefit several aspects of our lives for the better.
Factom is a great example of this, even though it’s market capitalization is low. Thanks for reading and we hope you have come away with a stronger knowledge of not just some of the other cryptocurrencies out there, but with a stronger knowledge of their potential to make our lives better.
This article about 5 Most Underrated Cryptocurrency Assets was provided by Monika Tudja. Monika is the Head of Business Development at Fried.com, and Co-Founder of Festination.com. She is passionate about business, tech, and music.