This article is supposed to be an update for the ones who might have heard about Bitcoin and Cryptocurrencies, however, they are not really following the "industry" these days.
I also would like to raise the awareness about the whole topic, because what is actually happening around us is quite big and has been happening for a while.
So I have used "Bitcoin" in the headline, but what is actually amazing is the Blockchain Technology behind it. With all due respect, Bitcoin is still the most important of its kind, however, it was probably just the first step in the big picture.
What is relevant, is that Bitcoin and the Blockchain Technology has unleashed the real opportunities which are gaining more and more attention nowadays.
This increase in attention is mainly driven by the basic features of Cryptocurrencies, however, we need to recognize that we are talking about much more than simply a digital medium of exchange or measurement of value. Since the Blockchain Technology has come to light, a great number of attempts have been started to explore its opportunities. These attempts are coming in a form, which is usually referred to as "the upgraded versions of bitcoin": Altcoins.
The upgraded part is really important, because the Altcoins worth to mention are all better than Bitcoin in some way. I will try to add a few features on what they are actually capable of (in addition to the decentralized, peer to peer, etc nature of the blockchain technology), but please note that the below is a really high-level description for each, and also there are hundreds of other cryptocurrencies with different porpuses.
Ethereum: In addition to a digital currency, it is also a programming platform for developers to build financial, social or any kind of applications.
Ripple: Offers real-time, low-cost international transfers worldwide, which payment network is being applied by a growing number of financial institutions.
Litecoin: 4 times faster transaction time than Bitcoin.
Dash: Decentralized governance and budgeting system, private and instant transactions.
What is more important from the purpose of this article, is highlighting the current situation on the Cryptocurrency market.
We have all seen that the price of Bitcoin is higher than ever, however, something has also started in the Altcoin world. (To be honest, I do not really like the "Altcoin" expression, as it will be shown below, they are becoming much more than an "alternative").
Since the 1st of January 2017, the Cryptocurrency market cap has increased by $20B (almost the size of Snapchat), however, the increase in Bitcoin's market cap was only $7B.
The Altcoin Market Capitalisation has grown by 600% from $2.5B to $15B during 2017, especially after March.
As a result of this increase, the total share of Bitcoin has dropped below 60% of the total Cryptocurrency Market Capitalisation by the end of April.
So what does it actually mean?
The Altcoins and the possibilities of the blockchain technology are more and more recognized by investors.
The ones that are really providing advanced features against Bitcoin, are taking over its market share.
A new way of investing is emerging, when a portfolio is actually a diversified mixture of different type of digital currencies.
And what is ahead of us?
Regulations are being developed around the world to deal with this new technology - ultimately leading to mainstream acceptance.
Companies and institutions are continuously adopting blockchain technologies.
More and more opportunities for individual use of the currencies and the technology.
Altcoins are getting easier to access and trading volume is increasing significantly.
All in all, from an investor point of view, the Cryptocurrency market is one of the most exciting areas at the moment. Generally, the risk is really high, as most of the technology is new and the trading is highly speculative, but the numbers and the people behind the developments are encouraging.
Nowadays we hear a lot about Bitcoin, which is obviously the most widespread participant on the market so far. It is the most accessible cryptocurrency, and the easiest way to buy Altcoins is by Bitcoin through the dedicated exchanges, which is also a factor that increases demand for Bitcoin. But another real opportunity is one step further in the Altcoins, which are expanding much more rapidly and we have just seen some strong proofs in the last two months.
I will be interested to see how the Cryptocurrency market performs during a period of global financial distress, but until that happens let's see how long the increasing growth of the market lasts.
I did not go into deep technological details because there are much better materials elsewhere, so please do your own research if needed regarding Bitcoin, Blockchain technology, and the different Altcoins, etc.
This article is not supposed to be an investment recommendation, and I do not receive any kind of compensation from publishing it.
Source: Coinmarketcap, Highcharts, Ethereum.org