What a time for early Bitcoin traders! Did anyone foresee this blooming outcome in 2009? Is this a sign that we should invest in other prospective cryptocurrencies and wait for their golden days? No single answer is convincing enough as this is the first time for a blockchain-based asset to conquer the investment community.
Based on the current events, only two things can be taken for granted: first, the world is permanently moving towards the digital ecosystem; and second, there’s room for new digital currencies to rock the world’s economy.
In this article, we’ll start off with a brief history of Bitcoin and its way to the throne. With its rise in mind, we will discuss what criteria signal a “big” cryptocurrency. In the end, we’ll list the top three potential Bitcoin successors you should take into consideration.
The History of Bitcoin’s Price
Although we still call Bitcoin “the new currency,” its history dates back to 2009, when the mysterious Satoshi Nakamoto introduced the world to a new trading concept by posting a link to a white paper called “Bitcoin: A Peer-to-Peer Electronic Cash System.”
Bitcoin’s first price increase was noted in 2010 when a single Bitcoin reached the price of $0.08. Following a rough road, early Bitcoin traders faced an exhaustingly volatile market with daily fluctuations and a series of scams and frauds resulting from the lack of regulations. In April 2011, the Bitcoin price jumped by 3,200% reaching an amount of $32 only to sink to a $2 bottom price by November that same year.
In the following years, the price of Bitcoin continued to oscillate with rapid jumps in the range between $4 to $1,200. By that time, the innovative digital market had caught the eye of many enthusiasts, experienced traders, and regular folks who wanted a fresh field to invest their capital in.
In November 2017, Bitcoin hit an amazing price of $20,000, followed by a drastic price drop to $7,000 the very same year. The pandemic outbreak in early 2020 was the reason for the skyrocketing of Bitcoin’s value as the mainstream economy faced devastating losses. At the moment of writing this article, one Bitcoin is worth over $50k.
However, the golden era of Bitcoin isn’t over yet. At this point, we can’t predict its further development even though financial experts try to “sell” diametrically opposite opinions. Meanwhile, it’s time we considered other promising altcoins. How can we know they’re worthy of our attention?
What Are the Features of the New Bitcoin?
Bitcoin is the pioneer but it isn’t alone on the digital frontier. There are over 8,000 active altcoins with an aggregate value of approximately $1.5 trillion, which is 40% of the total crypto trading volume.
However, a great number of the upcoming cryptocurrencies have a short life-cycle and despite the first-class marketing and management behind them, they don’t succeed in maintaining the image of reputable cryptocurrency, so they fade out soon.
On the other hand, we have a handful of success stories about cryptocurrencies on their way to becoming credible competitors to Bitcoin. Let’s outline what factors make the difference, apart from the inevitable market volatility.
Usefulness and Purpose
It’s an unmistakable rule that the demand for a particular altcoin will rise if people find it useful and believe in its purpose. At this point, there are a great number of cryptocurrencies on the market that meet all criteria for a valuable coin, but they lack a certain purpose. If users can’t find the purchase of a particular coin meaningful enough, that’s a clear sign the altcoin won’t last long.
The blockchain industry is based on a predefined maximum supply of coins and this is a solid test of whether a certain coin will have a bright future. If traders haven’t lost interest by the time the maximum or near-maximum has been reached, there’s a good chance that the cryptocurrency’s price will rise.
Current Price and Trading Volume
The price and other relevant information about each cryptocurrency are easily accessible online today. A deep analysis and research on its current market position can be the key factor in deciding on your next investment. Nonetheless, as you already know, there is no guarantee that the market won’t change direction tomorrow.
Easy and Fast Access
An appealing feature of a promising cryptocurrency is easy and fast access. This doesn’t mean that the cryptocurrency is cheap. Rather, a cryptocurrency that’s easy to reach should be available on the most reputable exchanges and other popular crypto trading services. This is a sign that it’s being managed effectively and seriously considered by experienced traders.
The Top 3 Cryptocurrencies Which Could Be the Next Bitcoin
Ethereum, Litecoin, and Stellar make up our top 3 cryptocurrencies that could be the next Bitcoin. Let’s take a deeper look into their basic traits.
We mentioned that the purpose behind each cryptocurrency is what attracts potential traders most. Ethereum is based on a strong one: decentralizing the internet by substituting the existing servers with “one computer for the entire world,” accessible everywhere to everyone.
Ethereum is, in fact, an open-source blockchain software that supports Ether, a coin placed right behind Bitcoin, worth over $139 billion. In simpler words, all Ethereum-linked programs require a certain amount of computing power. Ether is the asset you pay for this power. A remarkable number of 730k active traders see long-term potential in this innovative blockchain concept as it tends to offer its users greater control over funds and online data since Ethereum began in 2015.
Litecoin is one of the cryptocurrencies with the longest tradition, founded in 2011 by former Google engineer Charles Lee. It seems to be an upgraded Bitcoin version in all aspects: lower costs, fast payments on its network, higher supply of coins, etc. Unlike Bitcoin and Ethereum, Litecoin didn’t reach a price spike in 2020 despite its exceptional technical strengths. However, it has achieved remarkable credibility and trust among experienced crypto-traders, which makes Litecoin one of the most serious candidates for the title of “the next Bitcoin.”
Stellar is an open blockchain network with a clear and meaningful vision. It provides practical and efficient business solutions to institutions and individuals. The most distinguishing feature of Stellar is its fascinating payment network speed for processing large transactions.
One of the biggest drawbacks of traditional banking networks is the amount of time they take to process, approve, and settle high-net international transactions. Stellar does the same in no time. Their only condition is its native Lumens (XLM) coin to be supported on the respected network.
Stellar’s platform is intuitive and easy to navigate. It is similar to modern payment processors like PayPal – the transaction process can be immediately initiated once you deposit funds on the network. To be clear, Stellar’s goal is to become the future of international payments, not necessarily Bitcoin’s successor. However, it’s worth taking XLM into account as your potential investment since its innovative approach is yet to be fully recognized. And since anything is possible in the crypto space, Stellar can also possibly be the next Bitcoin.
We hope that our blog post broadened your knowledge beyond Bitcoin as a single source for investing in digital assets. If you’ve decided to take action before another cryptocurrency makes headlines worldwide, get started by contacting Coin IRA. Their experienced cryptocurrency sales specialist will show you detailed crypto opportunities and the best practices for investing your savings wisely.