We rarely use cash today for our everyday purchases. The traditional paper money now appears on a smartphone screen as a monetary obligation of the issuing bank. The current non-cash payment system isn’t a recent phenomenon. It has been developed over many years by practitioners in the fields of economics and jurisprudence. In order to settle non-cash transactions, economic intermediaries are required.Banks and other credit institutions.
Bitcoin, a brand new form of currency that appeared in 2009, opened up a whole new chapter of history. The adoption and emergence of cryptocurrencies will allow non-cash payments to be taken to the next stage, without the need for intermediaries or large fees.
We have identified five key characteristics which will allow cryptocurrency to be a common and effective payment method:
- Stability For a currency to be effective, the people have to subconsciously assess its goods. To achieve this, the currency rate must be stable and there should be a balance between supply and demand.
- Scalability The use of cryptocurrency for daily calculations will ensure that transactions are uninterrupted even if the number of users increases.
- Simplicity of Use: The processes for purchasing, storing, and using cryptocurrencies must be made as easy as possible.
- Popularity: Money’s use is entirely dependent on network effects. In terms of practicality, the popularity of cryptocurrencies is directly proportional to its growth.
- Incentives for Spending: Up until now, the primary incentive to acquire cryptocurrency was the future appreciation of the asset. To make the cryptocurrency pay, it is important to create incentives to not only spend, but also to save.
At the present time, there are no cryptocurrencies that can meet the above criteria. We have selected the 5 top cryptocurrencies that are either leading or will be in the future in terms of one or several characteristics.
is one of the best-known cryptocurrencies. We want to highlight it first. Litecoin, compared to Bitcoin’s “gold”, is a quick and simple “silver” that is easy to use and transport. Litecoin can be a good alternative to Bitcoin for people who don’t want to deal with the expensive transactions and lengthy processes of Bitcoin. Litecoin is one of the most secure networks out there, thanks to ASIC equipment that costs more than $150 million.
Litecoin, one of the liquidest assets in existence, can be easily exchanged into fiat currencies using platforms and services. Litecoin has partnered with TenX and other debit card providers. Considering that Litecoin’s user base has grown over the past 7 years, it has a good basis for further distribution.
The Gulden is an electronic currency that allows for simple, quick and secure transfers of money. Name “gulden”, which is derived from an old German/Dutch term for “gold coin”. Dutch guilders were in use until 2002 when the Euro was introduced, and they no longer served as the national currency.
Gulden, a Litecoin-fork launched in April of 2015 is a new cryptocurrency. Gulden is 4 times quicker than bitcoin at processing transactions thanks to PoW2 Technology. Gulden isn’t the best cryptocurrency today, but it has many advantages.
Guldens are easy to buy: simply register at the Gulden website and you will receive a wallet. The “mobile” app becomes your “bank”, with Gulden. Gulden is available on iOS and Android. Among the many advantages to this currency is the fact that you can use it in The Netherlands. Transfer money into any IBAN account. Nocks.co is a project that works with the Nocks.co service, converting Bitcoin and Euro instantly to Gulden.
The Nano payment platform is a quick payment system that does not charge a fee for transfers. This makes it a great way to conduct peer-to-peer payments. Nano’s unique block architecture allows each profile to have its own blockchain. It ensures unlimited bandwidth and fast operation. Nano’s goal is to be the primary payment method in the crypto market.
In 2015, Colin LeMahieu launched the Nano cryptocurrency under the name RaiBlocks. The developers officially announced the name change to Nano on January 31, 2018.
Nano offers a desktop wallet and mobile app for the storage and transfer of cryptocurrency. Nano is developed by the project team on GitHub.
has not yet entered cryptocurrency markets, but it’s been lurking in the shadows since several months. According to some reports, IMMO is the product of one of the most powerful banking dynasties – The Rothschilds. They want to turn IMMO into a global reserve currency that will be able to compete with the widely accepted dollar.
According to official project documents, the IMMO Token has an Intrinsic value and includes a diversified resource portfolio. In the long run, their value does not diminish, but often increases. Real estate, land and water are some of the resources. The management of resources will be done in the form of Trusts (since the beginning of time, wealthy people have used Trusts to save and transfer their assets securely). The token will most likely be accepted and implemented by the society if it combines the legal system of the past with cryptocurrency.
IMMO has attracted experts like Vitalik Buterin, CEO Ethereum, Lon Wong, CEO NEM and Ryan Taylor as well as other prominent personalities from the crypto space. Jimmy Song is a veteran Bitcoin Core programmer. Tim Draper runs Draper VC. Rumors suggest that IMMO has been discussed extensively by the G20 Finance Ministries during a summer conference in Buenos Aires.
El Petro–is an exciting cryptocurrency that is supported and promoted by the president of Venezuela Nicolas Maduro. The president sees cryptocurrency as a life-saver, given the economic conditions and US sanctions. El Petro’s price will be supported with real assets that the Venezuelan government holds: its oil reserves.
Crypto experts were skeptical of El Petro. They questioned Nicolas Maduro’s promises to secure the token using natural resources. Cryptocurrency sales reached $735m on the first day.
Nicolas Maduro announced last month that El Petro, the new national currency in Venezuela, will be used to tie salaries and prices. In addition, he said two currency units would circulate in the country in the initial stage – the bolivar soberano as well as the El Petro. El Petro is to become the new national currency.
This project cannot pretend today to be an international cryptocurrency for many reasons. The fact that the first national cryptocurrency is now available still reflects a positive development in the market for digital assets.
Cryptocurrency is not the ideal payment method. Due to their instabilities, innovative but still untested projects do not get the distribution they deserve. Projects that are technologically outdated but have gained a good public reaction cannot cope with the scalability issues and heavy load. Most cryptocurrency projects that have a competitive advantage on one characteristic are less successful than the others. It is still possible to assume that there will be a cryptocurrency that replaces the currency we know. Many blockchain startups aim to work in this field, and ultimately, it should lead the “ideal money” to emerge.