The rapid growth of Bitcoin’s value and popularity has sparked the emergence of many new cryptocurrency systems that claim to be better alternatives for Bitcoin. There are currently over a thousand of cryptocurrencies available and each offers unique mechanism that distinguishes itself from Bitcoin. In this article, we will show you three Bitcoin alternatives and how they compare with Bitcoin so that you make a good decision of what to invest in the highly competitive world of cryptocurrencies.
Launched just two years after the launch of Bitcoin, Litecoin is among the earliest forms of cryptocurrency that attempt to compete with Bitcoin. Litecoin offers similar features to those offered by Bitcoin, except that it claims to be friendlier to new players than Bitcoin. The emergence of Bitcoins in a network is triggered by miners’ activities; however, as time goes by, miners get more and more powerful, leaving new players with weaker machines unable to gain significant profit. Litecoin claims that its system is more ASIC-resistant, so both seasoned and new players can enjoy fairer share of the profit.
Ethereum, launched in 2015, is considered one of the biggest competitors for Bitcoin. This cryptocurrency system also experiences significant growth in terms of value and popularity. Each of these two systems use different currency, with bitcoin for Bitcoin and ether for Etherium. The differences between both systems are mostly technical, with Ethereum involving faster processing time (and rewarding orphaned block) and the use of Smart Contracts, which are virtual tokens representing agreements between two people. Ethereum’s reward system is also different from that of Bitcoin. With Bitcoin, the reward is halved every four year. Now in 2017, the reward that can be mined is 12.5 bitcoins. In 2020, this value will be down to 6.25. Ethereum, on the other hand, rewards a fixed amount of 5 ether for every processed block.
Dash is another innovative cryptocurrency system that gives significant influence to the realm of cryptocurrency by offering features that enhance security, stability and anonymity. In Bitcoin system, transactions are open to public. In Dash system, transactions are anonymous, thanks to the implementation of PrivateSend mechanism of Dash’s unique MasterNode system. MasterNode system also offers two other mechanisms that attempt to make Dash better than Bitcoin and other cryptocurrency system. The first is called InstantSend mechanism that ensures instant transaction and the second is called Decentralized Governance, which established a governance mechanism in certain area in Dash system to ensure stability and fair share of profit.
Just like Bitcoin, all of those three cryptocurrency systems are still in developing stage, with Bitcoin still in the front in terms of value and popularity. You can look deeper into each of those cryptocurrency systems to see which one is the most suitable for you.