Popular cryptocurrencies overview

Virtual reality – is how you can characterize a new type of financial services, where the role of invisible money is given to crypto-currency, and its reality can be felt on its well-being. «New money» can be exchanged for the usual currency, you can buy goods and services for them — the exchange of crypto-currencies and bitcoin-ATMs are becoming more widespread.

The risk of a noble cause

«Crypto currency fever» seized the minds of ordinary citizens, large investors, and financial regulators around the world. Bitcoin and his «younger brothers» show a fantastic increase in value, destroying all the established stereotypes about fundamental analytics and forecasts of experts with a world-wide reputation. The most daring of them, predicted bitcoin rise to the level of $1500, until the end of 2017. When in October the exchange rate exceeded $6000, a large army of optimists appeared, predicting the leader of the crypto currency to rise to $10000 (the barrier of $7000 was taken in November).

Skeptics continue to argue that all this hysteria will end with a «burst bubble» and, disappointment, is just around the corner. Time will judge both, but an incontrovertible fact remains the emergence of a new galaxy of millionaires, which invested, in the nascent bitcoin, in 2009. (for $ 1 they gave 1309 BTC).

Crypto-currency “Recipe”

«Chefs» of virtual money created a unique «recipe» that allowed their offspring to grow like yeast dough. The basis for the use of crypto currency is the technology of new methods of processing transactions — special methods of encryption, which are called «blockchains». The whole bitcoin network is a chain of blocks, the integrity and chronological order of which supports the reliable cryptography.

For all its «hate» for crypto-currencies (the monopoly on issuing money has been lost), governments and Central Banks recognize that the new technology «has the right to life» and this advanced experience needs to be introduced into the banking system.

Leaders of the crypto-currency market

Bitcoin. The appearance on the market dates back to 2009. «Father» is anonymous, under the pseudonym of Satoshi Nakamoto (the minimum part of bitkoyna is 0.00000001 called «Satoshi»).

The number of bitocoins is limited to 21 million, which has an impact on its growth. Properties of bitcoin are similar to gold and silver, because in both cases the factor of the limited and exhausted resource is considered. To store and use bitcoin, a special bitcoin-purse is used, which any user can make on the Internet. This wallet is reliably protected by passwords and does not require the installation of additional software.

Bitcoin mining is associated with the acquisition of expensive computer equipment and high energy costs. Such operations are engaged, so-called, «farms».

Since the beginning of the year, bitcoin’s rate has grown more than 7 times, and market capitalization has reached $123.4 billion.

Hard fork, who split bitcoin into 2 parts, did not prevent growth — Bitcoin Cash (BCH) shows enviable dynamics, approaching the level of $700 (the latest data show a weekly growth rate of more than 90%).

A new round of bitcoin growth was given by the message of CME Group (the largest operator of futures exchanges) that bitcoin futures will be traded. The CME decision, according to Bloomberg, was influenced by numerous customer requests, which actually forced the company to take such a step.

The Ethereum. Bitcoin’s success gave stimuli to the emergence of new types of crypto currency. Thanks to the diligence of the developers, the market was filled with hundreds of titles (more than 800). The overwhelming majority can not yet compete with the value of bitcoins, but there are also «successful copies.»

Bitcoin’s form, ethereum (ETH), developed by the Canadian programmer V. Buterin, in collaboration with G. Woud, based on the blockbuster. To realize the idea and attract capital, crowds were used, which allowed to collect $18mln in bitocoin. When the start-up showed this level of investment, the world’s largest companies joined the project: Microsoft, IBM, Acronis, Sberbank, and others.

The founders of the etherium called the new crypto currency «gas», since they represent it in the form of a kind of fuel. Fractional parts of the etherium:

• 1/1000 — finney;
• 1/106 — szabo.

According to the level of capitalization, the etherium takes the second place, after bitcoin. The total cost is $1.142 billion. The current course is $302.

Lightcoin. It is among the top 10 of the most popular crypto-currencies. Occupies the fourth place in terms of capitalization. The price as of 01.10.2017 is $55.

The mathematical algorithm limits the production of lightcoin, as well as bitcoin, but exceeds it fourfold (84 million of digital coins versus 21 million). Miners can receive 25 lightcoins (LTC) for each generated block (every 4 years the amount is reduced by 2 times). Unlike bitcoin, lightcoin has improved storage capabilities, more flexible, faster processing of transactions (due to more frequent block generation, more transactions are supported, without having to change the software in the future). Лайткоин differs serious branch support, a high trading turn, liquidity and is an excellent addition to bitcoin.

The aggregate capitalization of the Crypto currency exceeded $200 billion. Despite the stubborn non-recognition of the crypto currency by government and banking institutions in many countries (recently the offensive on crypto-exchanges and ICO was conducted in China and South Korea), the skeptical scenario for the development of the crypto-currency market does not look like a priority.