Investors are very big on the security of their investments, whether it’s investment in traditional bank currency notes, assets, properties or investment in different types of cryptocurrencies either Bitcoins or Altcoins.
Since cryptocurrency came to bare, the bulk of the market’s spotlight has been on its pioneer brand Bitcoins in terms of its efficiency, transaction timing and overall capacity to maintain the lead as an industry giant. Little wonder, Billionaire investor, Bill Miller describes Bitcoin as “the cream of the crop” as far as cryptocurrencies are concerned. Stating further, Miller who is the Founder and Chief Investment Officer (CIO) of Miller Value Partners believes Bitcoin is an ‘interesting technological experiment’
Having shared the above opinion on what others conceive Bitcoin to be, the onus is on us to discuss in this piece if Bitcoins is the most stable cryptocurrency, and what other cryptocurrencies are more stable than Bitcoins.
Is Bitcoins the most stable cryptocurrency?
It’s quite easy for investors or a layman to choose Bitcoin as the best cryptocurrency based on some of its features and the services it renders. Also with the views of industry stakeholders such as Bill Miller, who believe Bitcoin is the most stable cryptocurrency as any other type of crypto “Altcoins”, holds no value for him. Another Billionaire investor and industry stakeholder Marc Lasry of Avenue Capital Group shares a similar opinion with the aforementioned positing that Bitcoins are the virtual currency that will most likely attract the most investors and which also has the greater prospect of success.
However, this begs the question if the position held by the two industry giants mentioned above is correct because as at the time of writing, the crypto-world can lay claim to an excess of about 1100 cryptocurrencies, with the constant innovations and new projects being churned out at quite a fast pace than one can imagine. Also because, these coins possess a value affixed to them in terms of money, it’s challenging to know which may progress and which coin may drop in terms of price.
The popular phenomenon in the cryptocurrency trade has seen the major competitor, Litecoin describe Bitcoin as the “gold” of cryptocurrencies while considering itself as the “silver” of the industry. Albeit, in a bid to have a foothold on the discussion of stability, industry experts are of the opinion that Bitcoin is not in tandem with “Gold” in any way as the highly rated cryptocurrency is considered a non-match in terms of similarity to gold.
Compared to gold, Bitcoin possesses some functions which the other Cryptocurrencies do not. The key functions among them include the flexibility of transfer and capacity to hold sway as a form of exchange. Regardless of some of these capacities, it’s thought that Bitcoin is yet to attain the level of a viable currency or payment system. However, with more efforts, time and consistency, many believe Bitcoin can attain the height of being a global currency in the near future.
Two arguably most stable cryptocurrencies
Ethereum and Ripple are two cryptocurrencies most experts will consider to be very stable for the following reasons.
The fact that Ethereum like many other cryptocurrencies partakes from some of the values of Bitcoins can’t be overemphasized, though its application is quite different. The scope of this piece won’t permit the entire explanation of this process, however, the key point here is that Ethereum is in support of transactions and the execution of business descriptions known as Smart Contracts. This function of Ethereum provides opportunities for absorbing and an efficient use of Ethereum in different domains rather than just carrying the tag as another cryptocurrency.
Though it doesn’t possess a high value compared to competitors like Dash and Bitcoins Cash, Ethereum is arguably one of the best choices for investors in cryptocurrency. Another standout for Ethereum is that its mostly considered as the Blockchain 2.0 based on its the flexibility. Compared to cryptos such as Litecoin, Ethereum via its token standard “ERC20” anyone can establish a new cryptocurrency token configured based on ERC20 and this will give them access to trade on Ethereum’s network. ERC means “Ethereum Request for Comments”.
These are two major positives from Ethereum’s network is that it grants companies which desire to establish a new token the ability to maximise existing Ethereum network. It also makes the Ethereum network the foundation for many cryptocurrencies to build on. Largely, Ethereum possesses a fantastic user experience and also has the stability potential to usurp Bitcoins.
Best described, Ripple is the offshoot between the establishment and direct workforce which came to be in the blockchain space. Compared to other cryptocurrencies, Ripple operates as the new-generation RTGS(Real-time gateway system) deployed by financial institutions for offsetting payments all over the world. Just like Ethereum, Ripple’s protocol is referred to as XRP.
Key among the functions of Ripple is the connecting investors, exchanges and payment providers via its self-regulated blockchain network known as Ripple Net. This means, Ripple offers liquidity for providers of payments, banks, and also offers currency exchange and transfer. Because these transactions occur on its network, the processing time lasts maximum between four to six seconds. This is different to other cryptocurrencies like Ethereum or Bitcoin whose transaction takes longer to process.
One of the reasons Ripple is a great investment choice is because it is both flexibile and is used by big corporations. It currently has an excess of 100 financial institutions. This increases the belief of investors in Ripple. Consequently, this reality will scale up the usage of Ripple’s protocol in reality and will yield an increase in the value of XRP units.
Compared to Bitcoin and Ethereum which are traded and listed almost across the world, Ripple exists only on a few exchanges currently; notwithstanding the level of feats achieved by Ripple at an early stage in terms of the calibre of its clientele network. That said, Ripple remains a non-negotiable purchase for potential investors desiring a stable cryptocurrency.