top 10 Alternative cryptocurrency to Bitcoin you have to watch in 2021, Best crypto to invest in 2021.
Bitcoin is reaching new heights. But other cryptocurrency may also emerge in less dramatic ways. The ones that emerge will have a simple, tangible utility for their target audience. Here are 10 "altcoins" to watch, based on five criteria.
Bitcoin's value is skyrocketing. In the spotlight, especially with large corporations taking a keen interest in it, it almost makes you forget that there are more than 2,500 cryptocurrencies.
This world, somewhat apart, is effervescent. But make no mistake about it. For those who wish to invest in them, cryptoassets are among the riskiest mediums. Highly speculative, their high volatility can lead to the total loss of the invested capital. As with any investment, one should refrain from investing blindly, or only motivated because others have chosen to bet money on it.
The universe that carries the crypto-currencies is complex to understand, because it is inseparable from the new computer technologies and "blockchains". But one thing is certain: the ones that emerge will have a simple and concrete use for the public they target. It will not be necessary to delve into technical details to understand what they can bring to everyday life.
How to estimate the potential of a cryptocurrency?
Cryptocurrencies that want to establish themselves as a currency of exchange
In addition to the 5 criteria mentioned above, the potential of these crypto-currencies is strongly linked to the upcoming evolution of legislation around the world. Indeed, they are likely to come up against the tightening of rules in many countries, and the creation of digital currencies by the central banks* of the various states.
Litecoin (LTC): the oldest alternative cryptocurrency
Created in 2011 by Charlie Lee, a former Google employee, Litecoin was the first alternative cryptocurrency to Bitcoin (now referred to as "altcoins"). It operates on a model close to that of the star cryptocurrency. Its history means that it has a very extensive network. It has also demonstrated the security of its transactions.
Litecoin also has good credibility, with a large number of exchange platforms and some merchants starting to accept it as payment.
Once all the planned tokens are issued, there should be 4 times more Litecoin in circulation than Bitcoins. But its development is still quite slow, which could cause it to fall behind other cryptocurrencies technically.
Project launch: 2011
Highest price: 292 euros in December 2017
Lowest price in 1 year: 34 euros in March 2020
Capitalization: nearly 10 billion euros in March 2021
The Dash (DASH): the search for simplicity of use
Dash (a contraction of "digital cash") has set itself the goal of becoming an exchange currency that is as practical and easy to use as cash or Paypal.
One of the main uses of the Dash is to send money around the world. Other uses could follow, such as paying for products or services, online trading...
Launched under the name "Darkcoin", its founders wanted to distinguish the cryptocurrency from Bitcoin by making transactions anonymous. It was then suspected of being intended to finance illicit activities. Since then, it has gained more notoriety, thanks to its simple model and the ability to send money confidentially and instantly at low cost. But its degree of centralization is still fairly criticized.
Highest price: 1327 euros in December 2017
Lowest price in 1 year: 58 euros in March 2020
Capitalization: nearly 3.3 billion euros in March 2021
Monero (XMR): untraceable transactions
Monero is also a cryptocurrency for which anonymity is the watchword. Its system makes transactions untraceable: it is impossible to know the identity of those who have made an exchange, nor the amount involved. This spirit of "fungible" assets is the opposite of Bitcoin.
One of Monero's strengths lies in its highly decentralized system and large network. But the confidentiality of transactions makes it opaque. Critics point to the cryptocurrency's possible links to illegal businesses and the dark web.
In the future, "privacy coins" could be banned in several countries, in order to avoid the financing of reprehensible activities.
Highest price: 353 euros in January 2018
Lowest price in 1 year: 41.2 euros in March 2020
Capitalization: €1.6 billion in March 2021
NB: Other cryptocurrency are positioning themselves in the anonymity niche, such as Zcash (ZEC) or Zcoin. Many have been the subject of controversy (hacking, funding of illicit markets...).
Tether (USDT): the stablecoin that's still worth $1
Tether is a rather unique cryptocurrency: issued on several blockchains (including Ethereum and EOS), it is backed by the value of the US dollar, making it the first "stablecoin". While cryptocurrencies have the characteristic of being volatile, the price of Tether is always very close to 1 dollar.
This sort of "parity" gives it a usefulness for holders of other crypto-currencies. For example, it is used to convert gains made on other cryptoassets, while avoiding the need to convert them into official currency (into "fiat currency", according to the jargon).
But this cryptocurrency is lacking in decentralization. Its directions depend heavily on the decisions of the issuing company, which can, for example, unilaterally choose to freeze an account. It is appropriate to wonder what would happen if this one came to put the key under the door... The detractors of this cryptocurrency also blame the company Tether a certain lack of transparency. The company has also had problems with the U.S. justice about illegal use of funds, and would not have sufficient reserves for the amount of transactions made.
Another weakness: the status of "stablecoin", i.e. a cryptocurrency backed by an official currency, puts Tether at risk. Legislation remains rather vague everywhere, and it is not excluded that this type of cryptocurrency will be formally banned in the near future. This topic is particularly under the spotlight because of the Diem project of Facebook. This project has provoked an outcry from many states, which fear that their monetary sovereignty will be weakened.
Price: indexed to the U.S. dollar, historically around $1
Capitalization: nearly 34 billion euros in March 2021