Since the theft of depositors in Cyprus, Bitcoin has reached amazing
new heights in both popularity and value. Over a $1 billion of Bitcoins
are now in circulation. People all over the world are beginning to
realize the value of financial anonymity and the utility of using
crypto-currencies.
Peer-to-peer digital currencies don’t require a central authority or a
bank account, they have microscopic transaction fees, are quasi
anonymous and can be used to purchase a growing list of real world goods
and services.
However, there is a dilemma to the price of Bitcoin rising too fast.
Some say it’s a bubble, yet as capital controls and the desire for
financial anonymity continue to rise around the world, so will Bitcoin’s
value. If it is a bubble, it’s not likely to burst anytime soon.
The real dilemma is why would anyone spend a currency that doubles in
value every few months? Bitcoin, at this point, is a good investment
but not a great medium of exchange.
The success of Bitcoin has spawned a few emerging competing digital
currencies into the market that seek to correct some of Bitcoin’s
shortcomings. Modeled after Bitcoin’s open-source peer-to-peer format,
these new currencies may not be riding Bitcoin’s coattails much longer
as they gain steam in their own right.
CryptoJunky
writes:
For the past several months Bitcoin has been making headlines as its
massive growth has outpaced any and all traditional investments.
However, the big winner this week in the fledgling crypto currency
market was not Bitcoin but the myriad of young crypto currencies that
now appear poised for growth.
What are these young crypto currencies? Here are 5 new crypto currencies you’ve probably never heard of:
Litecoin
Litecoin (LTC) is quickly becoming the most popular competing digital
currency. Litecoin is a peer-to-peer digital currency like Bitcoin but
with a scrypt hashing system making it is easier to mine. It trades on
multiple exchanges, and a new Silk-Road-like free marketplace called
Atlantis
is being developed exclusively for Litecoin in Tor. Litecoin differs
from Bitcoin in that it’s Scypt is easier to mine and four times as many
Litecoins will be produced (84 million) giving it more room for
expansion and a more stable long-term value. Litecoin has risen from
about $.25 to nearly $.70 in the last few weeks and is expected to
continue climbing as the marketplace for buying goods with Litecoins
expands. Get started with Litecoins
here.
Namecoin
Namecoin (NMC) is the only other major competitor to Bitcoin besides
Litecoin. Namecoin can be merged mined with BTC, but uses an alternative
peer-to-peer domain system. Namecoin differs from Bitcoin in that it
allows users to attach information to any given transaction, but is
similar in that only 21 million coins will be produced. Namecoins are
currently trading at around $.20, or .00226 of a Bitcoin. Get started
with Namecoins
here.
PPcoin
PPcoin (PPC) is a P2P digital currency compatible with Bitcoin
mining, but it uses an innovative proof-of-stake system to provide most
of the network security instead of proof-of-work like Bitcoin. “Security
level of the network is not dependent on energy consumption in the long
term thus providing an energy efficient and more cost-competitive
peer-to-peer crypto-currency,” PPC’s
white paper says.
Up to 2 billion PPcoins are currently allowed to be created. PPcoins
trade on a few exchanges where its current value is just shy of $.02 and
Find out more about PPcoin
here.
Terracoin
Launched in the fall of 2012, Terracoin (TRC) is one of the newest
decentralized, person-to-person digital currencies, also modeled after
Bitcoin’s protocol. Twice as many Terracoins (42 million) will be
produced as Bitcoins which makes them easier to mine. With Terracoin,
only the “longest” blockchain gets used by the network, thus preventing
any malicious nodes making it even more secure. Terracoin trades on
multiple exchanges and it’s current value is around $.092, or .001
Bitcoins. For more info on Terracoin, go
here.
Devcoin
Devcoin (DVC) is a digital crypto-currency that seeks to spur jobs
and innovation. It can be merge mined with Bitcoins, but the reward for
coin generation goes heavily to open-source developers who get 90%,
leaving 10% of the bounty for the miner. Besides developers and
programmers, Devcoin rewards artists and writers who can earn DVCs for
their work innovating the currency. The concept is to provide jobs to
anyone who wants to work, payable in Devcoins. “Devcoins provide an
income for everyone who wants to work, even if they live in an area with
more job seekers than jobs,” it says on their Wiki page. DVC’s
currently trade at a fraction of a penny. Find out more
here.
Sources:
CryptoJunky.com
BTC-E.com
BitcoinTalk
Vircurex.com
J.P. Hicks is an entrepreneur, info-activist, pro blogger, editor of
BlogTips.com and author of
Secrets to Making Money with a Free Blog. Follow @
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www.activistpost.com
