Market for cryptocurrencies have been very great this month of December, especially this week. Surpassing JPMorgan was not enough, the total cryptocurrency market cap crossed $500 billion this week. Suffice it to say that the ride has been good so far, save bitcoin has not been the guy behind the wheels this time around. Altcoins created to rival bitcoin are rather the powerhouse behind this massive growth. This does not mean that bitcoin is losing its value, it’s just that bitcoin’s growth this week has been fairly modest whereas that of other cryptocurrencies have been somewhat off the charts.
Bitcoin’s most notable rival; Ethereum, and frenemy – Litecoin have been very great in terms of value performance on the market. It is also these same coins that have spearheaded this week’s growth of cryptocurrencies. We would not have done justice if we fail to recognise the effort of Ripple. Ripple has been very key to this market boost after an all of a sudden 71% price rise on Wednesday. This is attributed very much to a strong demand by South Koreans for the Ripple crypto.
Ethereum is now trading at about $700 at Wednesday 11:53 p.m. GMT, after having reached heights of about $786 – $744.50 earlier in the day. These figures show an almost 12% increase as well as its overall appreciation in the year is about 5000%. Litecoin on the other hand faced a bit of a setback somewhere coming into Wednesday after having reached record heights for itself earlier in the week. After getting tired of sitting at below a hundred dollars, Litecoin’s demand shot it to record figures of $420. Currently, it is valued at $283 as at Thursday 12:01 a.m.
What’s the Catch?
It seems everybody’s guess is that bitcoin is the key factor behind the rise of these other altcoins. Considering the fact that it has risen from about $6,663 to $16,749 within the past month, most people are beginning to realise the potential of cryptocurrencies and are exploring them. However, since bitcoin seems to be rather quite expensive at the moment most investors are opting for the other digital currencies (like Litecoin and Ethereum) that have the potential to grow. Most people want to be able to grow with these currencies from their infancy just as many did with bitcoin are reaping the fruits of their hard labour. It appears to be that the craze for cryptocurrencies is going to seep into the upcoming year.
What one should not be ignorant of is that these digital coins have their own upper hands over bitcoin. Litecoin for instance is faster, lighter and less expensive at the moment that bitcoin is. Due to bitcoin futures’ introduction into the system, networks have jammed as well as transaction costs have been very abysmal. In such a time as this Litecoin is a very pleasant alternative for bitcoin since it is even has a faster and less expensive transaction system. Ether is also another software platform that is used for initial coin offerings, and its recognition among some banks in an effort to even adapt Ethereum’s blockchain platform also makes Ethereum a very enticing altcoin to bitcoin.