2019 was a great year for cryptocurrencies. As per data, the cryptocurrencies had outperformed most of the traditional asset classes last year. Bitcoin gave a whopping 101.2% return since the start of 2019. In contrast, the overall average return from the financial markets has been merely 12.7%.
Of course, cryptocurrencies did have the worst times in 2019. Still, over the year, the total market capitalization of cryptocurrencies rose by $73 billion. Out of which, majority growth was contributed by Bitcoin.
Thanks to the awesome trading platforms that helped traders play with the cryptocurrencies.
Now, it is 2020. And, this is the perfect time to know about the four best cryptocurrencies for 2020.
Bitcoin bulls seem to be pleased for 2020 due to multiple reasons. First of all, the traders are eagerly waiting for the halving event that takes place once in four years. In the halving event, the rate at which the bitcoin is produced is cut into half. Because of this, the overall supply remains finite, upheaving the market demand and thereby prices. Last time, in 2016, post-halving, the bitcoin value had jumped more than 4,000%.
Secondly, Bitcoin’s reference as a Digital Gold. For many years, there were a lot many talks on this kind of reference. And, it got that extra publicity recently in 2019 when de facto US Congressman Brad Sherman claimed crypto assets as a threat to the US Dollar’s superiority and dominance in the world economy.
Traders continue to look at bitcoin, both as a long as well as short term investment option.
Launched in 2016, Ethereum is still a fresh and early-stage technology. People are less aware of Ethereum’s powerful features. Bitcoin was the former technology for Ethereum. But, it seems like Ethereum might surpass Bitcoin in 2020.
The most dominant feature of Ethereum is - Smart Contracts, with which it gained massive popularity. Ethereum is made to usher a new type of application - decentralized applications (dApps). These dApps will run on Ethereum, activating the smart contract protocols.
With Ethereum’s smart contract, you can have secured digital ownership of assets from anywhere in this world. Having things in the right place can enhance business activities and accelerate overall economic growth.
Another key feature in Ethereum is - Tokenization. For example, you will be given tokens to own artworks, mortgages, important personal documents. Such tokens can be easily tradable without the hustle of dealing in person.
Litecoin - one of the most successful cryptocurrency in 2017, soared more than 5000% in just 12 months. And that’s really awesome!
Litecoin is no doubt the lite version of Bitcoin based on the same code. More than just a lite version, Litecoin was build to fix bugs faced in BTC and make it faster, lighter, easy-to-use. Litecoin is indeed a peer-to-peer network with the same-name cryptocurrency.
But, what makes Litecoin more valuable for the cryptocurrency and the blockchain industry?
When miners mine Bitcoin, they use expensive hardware that possesses high computing power. However, with more problems to solve, the network becomes huge and difficult to handle. Needless to say, Litecoin has replaced the traditional way how verifies transactions. Instead of using ASICS (Application-specific Integrated Circuit), it uses GPUs (Graphics Processing Units). Comparatively, GPUs consume less energy and are available at a cheaper rate.
- Transaction queue & Faster Block generation
Bitcoin users had to wait for several hours or even days for transaction confirmation. However, the Litecoin developers have made transactions to execute faster than bitcoin, pleasing the users.
Flood Attack proof
Charlie Lee, the creator of Litecoin, had kept in mind the threats for a Flood Attack while developing Litecoin. In 2015, Bitcoin had suffered from this attack where the user system gets bombarded with hundreds of thousands of spam transactions. The only aim of a flood attack is to damage the user network.
Fortunately, Litecoin dominates with its high scalability features with which users can have more number of transactions simultaneously in a network.
Most cryptocurrencies have an open and public ledger. Even the above three are based on blockchain technology and immutably records transactions on the ledger.
However, privacy remains the key issue for majority of the cryptocurrencies like Bitcoin. Government agencies, data analytics firms, and other relevant parties peek into user’s information through various ways, making it unsafe.
Needless to say, Monero, a private focused cryptocurrency reassured privacy to the crypto users. The developers have taken privacy on a serious note. Monero is based on the CryptoNote protocol.
Also, another key highlight of Monero is its high fungibility developed because of its default privacy setup. Other cryptocurrencies just provide privacy as an option and do not include it as mandatory like in Monero.
The best part for Monero is its halving event that occurs every two years. The last one was performed on Nov. 2019, while the next one has been scheduled for Mar. 2021.
So, that was the four best cryptocurrencies for 2020. Now, which are your favorite cryptocurrencies?