Can Bitcoin maintain its dominance?

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Bitcoin is a name synonymous with cryptocurrency. Since its mysterious debut in 2009, it’s become a digital gold rush, capturing investors’ interests and revolutionizing finance. But with innovation rampant in the crypto sphere, can Bitcoin hold onto its crown? More and more crypto tokens continue coming up with perks that might challenge Bitcoin.

Bitcoin’s Competitors

Bitcoin’s dominance springs from a few key reasons. Its mammoth market capitalisation, currently hovering just over a trillion dollars as of May 2024, gives it unparalleled recognition and trust among investors.

Secondly, its limited supply of only 21 million coins creates scarcity, a vital factor driving its value. Lastly, its pioneering status and well-established network of miners and users generate a formidable network effect, making it challenging for newcomers to break through.

However, Bitcoin grapples with challenges. Transaction fees can be high, and processing times could be better. Moreover, its energy-intensive proof-of-work mining raises environmental concerns. These hurdles pave the way for new contenders to emerge. Three crypto coins which have attracted much attention are Ethereum, Cardano and Solana.

Ethereum

Ethereum is the world’s second-largest cryptocurrency, with a market cap of around $500 billion as of May 2024. This is with good reason, too, as it is more than just your run-of-the-mill digital currency.

It’s a platform where you can build decentralized applications (dApps) and smart contracts—automated agreements run by themselves. This makes Ethereum a leader in decentralized finance (DeFi), a growing field changing how we handle money.

Recent upgrades are making Ethereum even better. The much-awaited Ethereum 2.0, set to be fully up and running by the end of 2024, promises faster transactions and lower fees. Ethereum is switching to a proof-of-stake system, which means smoother transactions and cheaper costs.

It is also big on the Non-Fungible Token (NFT) craze. These digital assets are booming, attracting artists, creators, and investors alike, meaning we’ll see a lot of mainstream Ethereum adoption in the future.

Cardano

Launched in 2017 by Charles Hoskinson, a co-founder of Ethereum, Cardano stands out for its meticulous development process, emphasising academic research and peer review to ensure security and scalability.

Unlike Bitcoin, Cardano uses a proof-of-stake mechanism, which is more energy-efficient. Recently, Cardano achieved a significant milestone with its Alonzo hard fork, enabling intelligent contract functionality on its mainnet.

This positions Cardano as a potential rival to Ethereum in the dApp space. Moreover, Cardano’s partnership with DISH Network signals its expansion beyond finance into real-world applications like telecommunications. With its focus on security, scalability, and real-world usability, Cardano is gaining traction among institutional investors and developers.

Solana

Since its launch in 2020, Solana has taken the crypto world by storm with its lightning-fast transaction speeds. Unlike Bitcoin and Ethereum, which can be sluggish, Solana can process tens of thousands of transactions every second. This speed makes Solana perfect for fast-paced trading and DeFi apps.

The secret behind Solana’s speed lies in its unique Proof-of-History (PoH) consensus mechanism. This system timestamps every transaction before adding it to the blockchain. It’s a smart innovation that speeds up the validation process, leading to quicker settlement times.

According to a recent report by DappRadar, a top blockchain analytics company, Solana gaming and casino apps are becoming increasingly popular. People are drawn to the platform’s ability to smoothly and securely handle in-game transactions.

This advantage in speed and security is especially appealing for the online casino scene. Casinos that support Solana offer players almost instant deposits and withdrawals. Plus, the blockchain’s transparency ensures fair gameplay.

Together, these features are shaping a new era of online casinos where players can enjoy provably fair games and instant transactions. Even as players learn about which online casinos to join, an indisputable fact will be that playing with Solana has more perks. Another exciting development from Solana is Solana Pay, a mobile payment platform introduced in late 2023. With Solana Pay, you can make instant cryptocurrency payments at participating stores.

Beyond the Big Three

While Ethereum, Cardano, and Solana are popular, many other cryptocurrencies, mostly stablecoins, have cropped up, each offering unique features. Here are a few examples:

  • USDT : Tether, or USDT, was introduced in 2014 and has become the most popular stablecoin, with a market value exceeding $100 billion. It’s commonly used to trade between different cryptocurrencies, providing a stable value amidst the fluctuating prices of digital assets.
  • USDC: This coin was the brainchild of a group of companies, including Circle and Coinbase, back in 2018. It is regulated and undergoes regular audits, making it appealing to investors who want transparency and compliance when venturing into crypto.
  • BNB: Binance Coin, or BNB, hit the market in 2017 through Binance, the largest cryptocurrency exchange worldwide. BNB isn’t just a cryptocurrency; it offers various perks within the Binance ecosystem, like lower trading fees and exclusive access to token sales. This has made BNB one of the top-performing cryptocurrencies in terms of market value.

In The End

The world of cryptocurrency is always changing. Bitcoin, the first of its kind, has made its mark, but now many others are vying for the top spot. Picking just one cryptocurrency that will come out on top isn’t easy.

The winner will be the one that can handle the most transactions, is used by most businesses and developers, and offers the most value overall. With technology advancing and new ways to use cryptocurrency appearing, we’ll see a lot of innovation and competition in the crypto world.

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WARNING: The investment in crypto assets is not regulated, it may not be suitable for retail investors and the total amount invested could be lost

AVISO IMPORTANTE: La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y perderse la totalidad del importe invertido

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