One of the cryptocurrencies that are making waves in the digital currency space at the moment is Ethereum. Its creator Vitalik Buterin has said that in its current state, it can handle 25 transactions per second (TPS).
This figure will likely increase as time passes, but it’s still significantly lower than Bitcoin’s 7 TPS and Ripple’s 1,500 TPS. Yet even with this potential speed limit, many crypto-enthusiasts invest heavily in Ethereum because of its native Ether (ETH) asset.
The Bitcoin Market Appearance
The Bitcoin market price is about $16k, slowly lowering. To make it worse, Bitcoin’s mining rewards also decrease by half every four years. One major issue with cryptocurrencies is that any central bank does not back them.
These factors and many more have led to a drop in price from its all-time high of $20k. Ethereum has been challenging Bitcoin as the cryptocurrency with the second-most market capitalization for quite some time now.
The top trending cryptos are also challenging traditional cryptos everywhere, and we can see some ups and downs in their prices. For example, Litecoin is one of the best examples. Litecoin, at this moment, is priced at $121, while it was worth around $220 just three months ago, in June 2019.
Litecoin’s rise may be due to an influx of Bitcoin into the currency when it became clear people were turning away from BTC. Other experts claim that Litecoin’s momentum may have had to do with the release of LTC Pay and the launch of Litepay across Europe.
Despite these possibilities, Litecoin may face more pressure, given its dependence on Bitcoin. In addition to the reasons, as mentioned earlier, why investors may be choosing Etherium over other crypto assets, ETH’s lower transaction fees could give them an advantage over other currencies.
Keep A Keen Eye
All eyes will continue to watch how crypto markets develop to understand how these changes affect global economies. Some experts believe that regulators should ban cryptocurrencies altogether to avoid potential problems in the future.
Others believe that regulators should implement regulations so that institutional money won’t be scared off and instead will pour billions into these markets, creating trillions of dollars worth of investment opportunities.
Some government agencies, such as China, have already banned ICOs (Initial Coin Offerings), which may only slow things down if they fix everything. It is because companies like Telegram launched their token sales through private channels after being blocked out by China’s authorities.
Enforcement Of Policies
Governments like France have enforced policies against ICOs. However, France still seems open-minded enough towards blockchain technologies to let startups experiment with the technology without consequences, unlike China which might impose fines of up to 10% on all investments made using Bitcoin or other coins.
Bitcoin investors are worried about its evanescent price. It is now in mainstream news clips. Ethereum is the closest competitor to Bitcoin. However, top trending cryptos are challenging the financial aspects of crypto assets everywhere. For example, Ripple offers a settlement system for traditional fiat currencies with built-in currency exchange and liquidity support. In this way, Ripple can process transactions much faster than Bitcoin because it doesn’t have the same limitations on block size and scalability.
The increased demand for transactions has led many people to turn to Litecoin. Litecoin provides an alternative payment option that may be more attractive than Bitcoin as transaction fees go up and mining becomes more expensive. Furthermore, Litecoin’s blocks are generated four times faster than Bitcoin’s, which means that transaction confirmations happen quicker on the network.
Investors should watch out for Ethereum, NEO, and IOTA. It will not be surprising if they challenge Bitcoin’s financial dominance soon.
Experts who use a Trading Bot believe that Ethereum will soon be Bitcoin’s most formidable rival. The Ethereum currency is quickly catching up to Bitcoin. The price of the Ethereum cryptocurrency has increased from USD 13.00 per ETH in January 2016 to an average of USD 303.00 per ETH as of October 16th, 2017. Of course, these numbers fluctuate constantly, and there are some days when the price spikes or dips significantly. For example, on October 17th, the price of one ETH was down to USD 307.00, and by the next day, it had rebounded to USD 310.00.
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