There have been some outperformers in cryptocurrencies over the past year. But a cryptocurrency can depend on all competitors. Anyone who had invested 10,000 dollars in this digital currency a year ago could now look forward to buy anything worth over one million dollar.
If you had invested in the closing price at the beginning of the year in today’s best known crypto currencies – what would have resulted from performance? We took a closer look at this scenario and compared the results of the current eight largest digital currencies. The analysis refers to performance without transaction costs, inflation and taxes. It is important to note that all calculations have been made in dollar and some crypto currencies are performing poorer due to the late ICO.
The ambitious outperformer: Dash
Away from the media hype surrounding Bitcoin (BTC), cryptocurrency Dash sneaked into Outperformer of the Year 2017. The digital currency is currently rated as the eighth largest cryptocurrency with a market capitalization of just under around $10 billion. It managed to increase its market value hundreds of times. The functionality is very similar to the Bitcoin. However, the cryptocurrency puts more emphasis on privacy. The biggest difference, however, is that the transaction information is not publicly visible to all users. The transactions are handled via the PrivateSend system.
The new stock market superstar: Bitcoin
With the tech stocks in the US among the most watched sector in recent months, the stock markets now know almost no other issue than digital currencies. Nobody stands in the limelight as much as the mother of all cryptocurrencies: the Bitcoin, it continues to have nearly half the value of all cryptocurrencies. Over 232 billion dollar market capitalization speak for the new superstar. The return today would be around 100,000 dollars, if you had invested the 10,000 dollars at the beginning of the year. But in the meantime, there are a whole host of up and coming successors in the slipstream, who are aggressively shifting investors from Bitcoin’s investment with high growth rates. There are currently almost 17 million bitcoins on the market, which makes the unit price accordingly high, since the other crypto currencies have more coins in circulation.
The emerging alternatives: Cardano, Ripple and Bitcoin Cash
An insider’s tip among the emerging crypto currencies is probably the currently seventh largest currency Cardano whose ICO took place in October. It is a scientific project that wants to correct the mistakes of the Blockchain and wants to completely redesign the technology on different levels. The crypto-thaler ripple had its ICO this April and currently has around 46 billion in market capitalization. The New York Times once described Ripple as “a cross between Western Union and a currency exchange without the high transaction costs”. Ripple amounts to a maximum of 100 billion pieces and thus has a gigantic offer, which is clearly noticeable compared to the other crypto currencies, since the unit price for a ripple is very low. The alternative from Bitcoin’s own family is Bitcoin Cash, which emerged from the spin-off of Bitcoin in August. Although the digital currency is only a spin-off, it already reaches the fourth-highest market capitalization with just under 44 billion dollars. Bitcoin Cash convinces with a higher block size and more capacity. This is to minimize the problems known by Bitcoin, as transaction fees should be reduced – one of the biggest criticisms of Bitcoin.
The emerging alternatives: Litecoin, IOTA and Ethereum
Also Litecoin brings it in the competitive crypto market already on scarcely 14 billion dollars and is no longer marginal appearance. Ex- Google employee Charlie Lee is the founder of Litecoin and brings his technical know-how in the project. The price currently sits at $262 – a fairly high unit price compared to its competitors. The reason may be that the volume of circulation is currently limited to relatively few coins. To be precise: on 54 million coins. With an investment of 10,000 dollars at the beginning of the year would have today 627,000 dollar.
On the crypto-currency market, the Berlin project IOTA applies also as one of the biggest hope bearers of the crypto-market. The ICO took place in June. The name is made up of Internet of Things and its underlying Tangle technology. The digital tokens are used when paying for transactions in computer-to-computer relationships. Well-known IT research firm Gartner calculates that Internet of Things applications will be a huge global growth driver for the next five to ten years. So far, however, no one had a solution for the payment system. IOTA took advantage of this opportunity in good time and developed a self-regulating “Machine to Machine” communication that allows payment without transaction costs. The maximum offer of the coins is almost 2.8 billion IOTA, currently all coins are in circulation. In our scenario, you would have within about a year now 88,000 euros in the depot. The biggest competitor of Bitcoin is currently Ethereum. The currency, Ether, currently costs around $700 and has focused on creating, managing and executing contracts in decentralized programs. In the year-on-year comparison, Ethereum is in second place and points out to Superstar Bitcoin that it will certainly be in the battle for the most valuable cryptocurrency of the future.
Where the journey goes, remains exciting for investors and investors. Currently, the market capitalization is over 500 billion dollars. In comparison, the worldwide cash, which is in circulation, amounts to 4 trillion. The overall analysis is based on the opening prices of 1 January 2017 (or the first trading day of the cryptocurrency) and 20 December 2017.