Top Cryptocurrency 2021 By Value: Bitcoin, Ethereum, or Dogecoin | The Real Asset

 Bitcoin and many of its peers have risen to new levels of popularity in the past year, but it is still a mystery to many investors.

With new "coins" always maturing, it's worth noting what's not to stay here and it's hard to keep track of.

Meanwhile, big companies have jumped on the bandwagon: Tesla announced earlier this year that consumers could buy vehicles with Bitcoin. Digital payment platforms Square and PayPal, which also own the transfer application Venmo, now also allow customers to use cryptos.

U.S. Rated by their market capitalization in dollars, the world's largest cryptocurrencies are Bitcoin, Etherium, Binance Coin, XRP, and Tether, according to CineMarketCap.

Their market caps range from over $1 trillion to around $50 billion. But that doesn’t tell us anything about how they work and how valuable a coin can be in the broader context.

Here's your guide to the biggest digital currency today.

Bitcoin

Bitcoin crypto is the largest and most recognized fish in the ocean, with a market cap of over $1 trillion.

Created anonymously in 2009, the digital currency runs on blockchain technology, the second buzzword of the past decade. Essentially, blockchain is a decentralized ledger system where records of transactions are stored. That is the main difference between Bitcoin and traditional fiat currencies such as the US dollar or the euro, which are controlled by central banks.

Bitcoin has reached a record high of $63,000 per unit this month, making it an extremely valuable cryptocurrency.

Many Bitcoin bulls call it a collection of value - a label history historically reserved for safe investments like gold - and argue that digital currency is a good investment to protect against inflation.

It’s also prone to wild swings in value, so it may not be the best option for risk-averse investors. A few days after reaching its record high this month, it suffered a flash crash, which dropped nearly 14% in less than an hour.

Part of the value of Bitcoin is determined by the limited number - 21 million - coins that can be made. Not all coins are in circulation, and Bitcoin uses a computer to solve complex puzzles to create a new "block" on the "miners" chain. That process is rewarded with bitcoin in return, however, the prize is halved every 210,000 blocks. These “half” events have led to volatility in the price of bitcoin in the past.

The mining process raises a lot of computing power and electricity, leading to concerns about the environmental impact of Bitcoin.

Etherium

Etherium is open-source blockchain-based software with its own cryptocurrency called Ether. It is the second-largest digital currency with a market cap of about $ 300 billion.

The software was created with the idea of ​​extending the use of blockchain beyond Wikipedia and using it in a wider application, making it more than just "cryptocurrency".

Ether supply is not capped and new tokens are constantly created through the same mining process as Bitcoin. According to CoinDesk data, it touched an all-time high of more than $ 2,500.

Etherium was launched in 2015.

Binance coin

The third-largest crypto, with a market cap of about $90 billion, is a bit of a different beast.

Binance Exchange is the largest cryptocurrency platform by volume traded and counterfeit Binons coin.

It has a top cap of 200 million tokens, but tokens are regularly destroyed - or "burned" - to reduce total supply and stabilize its value over time.

The second way a bean coin is that it can only be exchanged for other cryptocurrencies.

Most recently, during the years following the Trump administration, Binance hired Brian Brooks, the acting head of the Comptroller and Auditor General's Office, to run his U.S. business.

XRP

XRP is a digital currency on the payment platform Ripple. The neat thing about Ripple is that any currency - digital or otherwise - can be exchanged for another. This means that users can pay in Bitcoin to anyone without having Bitcoin, simply using the XRP as a bridge between the currency they have and what they want to pay their recipient. This makes it a very fast means of payment.

Banks have also caught up: Bank of America, Banks Santander, and Financial Services are partnering with Ripple.

XRP also does not run on a blockchain but on a data structure called a hash try, which sets it apart from other digital currencies. It cannot be minted, and its total number of coins is 100 billion.

Despite limited supply, the unit price per XRP token is still very low, with its highest price being $3.40, according to Syndesk data. Its market cap is just over $60 billion.

In December 2020, the U.S. The Securities and Exchange Commission has filed a lawsuit against Ripple, its CEO, and its chairman in connection with the illegal sale of registered securities worth $1.3 billion. Ripple CEO Bradley Garlinghouse denied the claim in December and called it "an assault on crypto at large".

The claim is a reminder that there is still a lot of regulatory uncertainty when it comes to cryptocurrencies, which can speak of instability in the years beyond what governments and institutions do.

Tether

With a market cap of nearly billion $50 billion, Tether is in the top five of the largest digital currencies.

It is an example of a so-called "stable coin" because it is pegged to the US dollar. This keeps Tether relatively stable compared to other cryptocurrencies, which can be very volatile. When it was first created in 2014, the value of each token was set at $1.

Tether's -l-time high was $1.32, according to data from Coindesk.

Honorable mention: DogeCoin

Dogecoin started in 2013 as a joke based on a viral dog meme. Its short-term market cap has grown to over $40 billion and it is competing with Tether for fifth place in the list of largest cryptocurrencies. There is such a time.

The popularity and value of the digital currency have risen in recent years as the value of Bitcoin has skyrocketed and Tesla CEO Elon Musk has repeatedly tweeted about it. This year alone, its value has risen more than 7,800%, according to data from Sandisk. It has briefly overtaken XRP as the fourth-largest cryptocurrency by market cap in April.

It is also popular with Reddit users, who have taken on a notable role among retail investors following the rise and fall of gaming retailer Gamestop (GME).

DogeCoin hit an all-time high at $0.43 in mid-April. That's right, the currency is still cheap.

Now there are 129 billion coins in circulation and will be available every year for new mines. This is what keeps the value of each coin relatively low - especially compared to Bitcoin, which is a rare tool in comparison.

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