Which is the second currency after bitcoin?

Started by Donna D. Phillips, Aug 08, 2022, 12:43 PM

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Donna D. PhillipsTopic starter

Comparing different cryptocurrencies with each other, what is the second after bitcoin? I still don't know which currency is second in value and popularity compared to bitcoin.
Bitcoin is growing quickly, but some alternative cryptocurrencies are showing many times greater growth. True, investing in altcoins is even more risky than in bitcoin.


Ethereum is the second-largest cryptocurrency by volume, but its many uses can create a much larger learning curve for new investors than Bitcoin. ETH could end 2022 between $6,500 and $7,500 if the same bullish upswing that started in mid 2021 were to continue. However, 2022 brought a bearish downturn in the crypto market, making it clear that ethereum's price is not going to rise from sentiment alone.


There is a popular belief that bitcoin is the only real coin, and all the rest are real shitcoins. I, in principle, agree with that, but still I think that the Litecoin and the Great Dane also have the right to life. Ethereum shows itself from the bad side in terms of stability. Although the same cast and dog, too. Bitcoin is really the only less volatile coin.

Bitcoin cash is now popular, that is, the second cryptocurrency that separated from the main bitcoin. Zcash is also up quite well now, up almost 40% in the last few days.

Ethereum is in pretty good positions, but in fact it is difficult to determine because all currencies are not stable at the rate and go up and down, it is difficult to keep up with them.
Litecoin is the second more important and oldest cryptocoin, it appeared several years later than bitcoin.
It was once called digital silver.


It all depends on how to look at your question. If you mean the trading volume, then the 2nd cryptocurrency is of course ETH. But both ethereum and bitcoin have been around for more than 10 years. They are far from perfect, because commissions sometimes reach several tens of dollars, and transactions can take almost half an hour. Every year, more and more perfect blockchains are being created, with instant transaction processing and practical free gas. An example is NEAR. Who knows, maybe someday these advantages will make these blockchains the second after bitcoin))


Altcoins are an alternative to Bitcoin 

Most altcoins (alternative digital currencies) are just a variation of bitcoin.
The creators of new currencies take the existing bitcoin code and improve it at their discretion. It turns out a branching of cryptocurrencies, with a single "start" in the form of bitcoin. This process is called a "hard fork". A hard fork occurs when currency users cannot come to one decision about the operation of digital money.

Cryptocurrency Bitcoin Cryptocurrency Bitcoin
Cryptocurrency Bitcoin Photo: Reuters/B. Tessier
For example, this happened with Bitcoin in August. A distinctive feature of bitcoin is the speed and cheapness of transactions. However, the cryptocurrency has become so popular that the system has stopped coping with the amount of work. As a result, bitcoin users could wait for several hours, or even days, for the operation to take place.

Bitcoin users have decided that it's time to improve the system. But the cryptocurrency does not have a single owner who could make new changes. To change a decentralized cryptocurrency, a majority decision is not enough.
It is necessary that 98 percent of users agree with the new rules and begin to comply with them. And although the decision to change the bitcoin system was made, users could not come to a common plan of action. As a result, bitcoin split into Bitcoin and Bitcoin Cash, and there was one more cryptocurrency on the market. In addition to Bitcoin Cash, among the alternative digital money to bitcoin, 5 more types are popular.

Ethereum (Ethereum, ether) - the currency of "smart contracts"

It is unknown why the creator of "Ether" - a Canadian programmer of Russian origin, Vitaly Buterin, called him so. Perhaps because, unlike bitcoin, the amount of ether is unlimited. And perhaps because ether is the first cryptocurrency that uses the technology of "smart contracts", which means it can "take the form" of any object.

How do these "smart contracts" work? For example, you made a bet with a friend that Russia will win the upcoming Russia-South Korea football match. Your friend wholeheartedly supports the South Korean team. You prescribe the terms of your bet.

Ether is the currency of smart contracts Photo: picture-alliance/NurPhoto/M. Romano
The smart contract removes the amount of the bet from the accounts and holds it until the terms of the contract are fulfilled - until one of the teams wins. This approach allows you to reduce human intervention and make the machine do the work. In the future, "smart contracts" can be used in accounting, logistics, and law.

The currency appeared in 2015, with the funds collected by Buterin, through crowdfunding - a voluntary donation of money via the Internet. By the way, donations were collected in bitcoins. Ethereum appeared in 2014.

If bitcoin occupies 40 percent of the cryptocurrency market, then Ethereum occupies 18 percent, thereby taking an honorable second place in the list of popular cryptocurrencies. The value of all issued Ethereum reaches $ 26 billion. At the time of writing, one "ether" cost $ 279 per unit, which is much cheaper than bitcoin.

Ethereum works almost the same way as bitcoin, because the basic code of the "ether" is borrowed. There are also miners (cryptocurrency miners. - Ed.), which "calculate" cryptocurrency, blockchains, in which information about transactions is stored. Just like in the bitcoin system, Ethereum blockchains are stored on each user's computer. Therefore, it is impossible to forge records - then it would be necessary to forge records on all computers.

There are many differences between bitcoin and Ether. For example, there cannot be more than 21 million bitcoins, while the amount of "ether" is unlimited. Blocks for storing information in the Ethereum system appear every 10-20 seconds, unlike bitcoin, which takes 10 minutes for a new block to appear.

Ripple is the fastest cryptocurrency 

Most of the new cryptocurrencies appear due to small changes in the bitcoin code. Like, for example, Ethereum. But in the case of Ripple, the code is written from scratch, under the order of venture funds (an investment fund focused on working with innovative enterprises and projects, investing in securities or shares of high-risk enterprises in anticipation of extremely high profits. - Ed.)

Ripple was created to increase the speed of banking operations and save money on them. The calculator on the official Ripple website shows that if the bank's turnover is $ 5 million, and the number of transactions is 300 thousand units per year, then you can save $ 3.4 per transaction. A bank can save more than a million dollars a year.

One of the admirers of the Litecoin currency is one of the admirers of the Litecoin currency
Many people prefer the Litecoin currency Photo: litecoin.org/de
Ripple technology is already used by Bank of America, HSBC. Unlike bitcoin and ether, the Ripple cryptocurrency cannot be "mined" (mined). This is a centralized system where all digital money already exists and belongs to one company - Ripple Lab. At the moment, there are more than 38 billion units of cryptocurrency.

And if the bitcoin and ether systems require empty mathematical calculations to "slow down" the creation of new blocks, then Ripple Lab issues cryptocurrency for useful calculations - processing scientific data from different universities. Ripple occupies 5.7 percent of the entire cryptocurrency market, which is $7 billion. One Ripple cryptocurrency costs less than a dollar - 18 cents.

Litecoin - digital money for fast transactions

It occupies 2 percent of the total value of the cryptocurrency market, which is $ 2.7 billion. Litecoin appeared in 2011, thanks to a former Google engineer, Charles Lee. Litecoin, just like Ethereum, is a hard fork from bitcoin.

One of the few differences between litecoin is the transaction processing speed - it is faster than in bitcoin. If blocks are created in bitcoin every 10 minutes, then in Litecoin it happens faster - every 2.5 minutes. That is why Litecoin can process more transactions than in the bitcoin system. The number of cryptocurrencies is limited, and cannot exceed 84 million units. At the moment, you can buy one litecoin for $ 51.

Dash - anonymous cryptocurrency

Dash ranks 6th in the list of cryptocurrencies. In total, there are more than 7.5 million units of this cryptocurrency, and it costs $ 327 per dash. This is another cryptocurrency that appeared in 2014 as a result of a change in the bitcoin code. The main difference from bitcoin is complete anonymity.

Bitcoin is anonymous until the owner of the wallet is discovered.
That is, all bitcoin transactions are already visible, but what good are they if the sender and recipient are unknown? If somehow the owner of the bitcoin wallet becomes known, then it will be possible to trace all the movements of his funds on the bitcoin account, even if he bought a cup of coffee 5 years ago.

In the Dash system, it is impossible to monitor other people's transactions - transaction data is not published in blocks. Operators are responsible for this - another difference from bitcoin. Operators, as well as "miners", process information on their computers and receive funds for it. On forums dedicated to cryptocurrency mining, it is said that operators earn twice as much as "miners".

Nem - currency with a unique code

The Nem cryptocurrency appeared at the end of 2015. Unlike most cryptocurrencies, it has its own unique code. But the most important difference is that Nem works using the POI algorithm technology (proof of importance - proof of importance).

What does it mean? For example, Litecoin and Dash work using the proof-of-work or POW algorithm (proof of work. - Ed.). It's as if you got a job as an artist, and you would be paid exclusively for the paintings you painted. Also, the system of bitcoin-like currencies rewards its users for correct calculations. However, there are already disadvantages in this system - as the tasks become more complicated, computing power should also increase. As a result, a lot of resources are spent to find an answer to a systemic problem that does not bring any benefit to society.

The proof-of-stake or POS algorithm (confirmation of the stake. - Ed.) works according to the system of dividends - those who have more funds in the account receive interest. But in this case, rich users will only get richer faster.

The POI algorithm used in Nem combines the concepts of these two algorithms. POI not only rewards those who have a larger account balance, but also takes into account how often transactions are made with other users.
Each user is given a trust rating. The higher it is, the more chances to get a reward.