Investors who overlooked interim and long-term rallies of Bitcoin are inclined to put money on other stable virtual currencies. Meanwhile, the price of Ether increased due to the heightened interests of financial entities and large corporate investors. The creation of Enterprise Ethereum Alliance raised the market cap of Ethereum by approximately four times. It went\u00a0from $1BLN to $4BLN in only two months.<\/p>\n
There are two reasons for justifying trading pairs\u2019 ratio in primary assets like Ethereum:<\/p>\n
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- Investors\u2019 tendency to move back and forth<\/li>\n
- Different portfolios of digital currencies<\/li>\n<\/ul>\n
Over 50% of the trading in exchange markets for Ethereum is processed using the ETH\/BTC pair. There are more traders in the virtual currency community who buy alternative assets like ETH compared to traditional investors using Altcoin.<\/p>\n
Interest in Alternative Coins<\/strong><\/p>\n
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<\/p>\nThe dominance index of Bitcoin (62.9%) can be considered very low right now. Yet, this does not denote a decreasing interest in the crypto currency. End-users have just gained more interest in altcoins which complement or remedy missing factors in Bitcoin.<\/p>\n
Ethereum has a Blockchain technology meant specifically for decentralized apps. In fact, numerous developers are concerned with the inadequate development framework for Bitcoin. The currency is not flexible although it boasts of strong infrastructure and strict security features. Unlike BTC currencies such as Monero, ZCash, and Dash offer privacy and anonymity for their users. Litecoin is a special case, since it has almost the same concept, configuration and monetary policy as Bitcoin.<\/p>\n
Altcoins and Proof of Stake<\/strong><\/p>\n
Proof of Stake (PoS) is just like PoW currency mining. However, special hardware is not required for solving math problems on particular algorithms. All you need are coins in your wallet. Traditional PoW mining remains ahead but it would make sense to invest in alternative coins that use PoS. The drawback is those altcoin can easily collapse. PoS is new but several projects are capitalizing said system.<\/p>\n
Investors can generate interests directly without any\u00a0counter-party risks. Numerous crypto currencies have already emerged with interests written into their sourcecode.<\/p>\n
Other Virtual Currencies<\/strong><\/p>\n
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<\/p>\nBitShares (Block Explorer) is both interesting and successful. Traders can buy and sell assets (BitAssets). These may be quite complicated. The point here is it’s possible to save BitUSD (for US dollars) and generate interest from the venture. According to the BitShares website, BitAssets earn variable profit from transaction fees. Interests are paid by short sellers and some other sources. Serious investors will certainly want to research more regarding these assets\u2019 value mechanism and the interest earned. The fees reward everyone and not just the exchange since it is completly decentralized. Currently,\u00a0BitShares is fourth based on market capitalization after Bitcoin, Litecoin and Ripple. The site contains a FAQ section where important points are explained well. BitAssets can be described as a \u201cdecentralized bank\u201d with a specific token which is BitShares.<\/p>\n
NXT is also a crypto currency. It did not get its codebase from Bitcoin, but developed an exclusive source. Many users believe it can be the “next BTC” due to its features which are:<\/p>\n
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- Private messaging<\/li>\n
- Decentralized market<\/li>\n
- Asset exchange<\/li>\n<\/ul>\n
Proof of Stake returns are derived from all transfer fees. The truth is PoS with Bitcoin-based code currencies are becoming more and more accepted. It would be worthy of note to invest money on hybrid and 100 percent Proof of Stake systems. Interests could be low to very high because of the experimental stage however.<\/p>\n
Peercoin (PPC) is among the first crypto currencies that implemented Proof of Stake. It also utilizes Proof of Work. It maintains one percent interest annually and is the most secure Peer to Peer currency that rewards users by reinforcing the network. The Peercoin site has an exclusive page for investors.<\/p>\n
Blackcoin is a successful and novel crypto currency that has one percent yearly interest. This Peer to Peer currency is characterized by decentralized and distributed public ledger not like the ledger of banks that can be easily seen and audited. It was built by the Rat4 developer and secures its own network through the \u201cMinting\u201d process.<\/p>\n
Finally, there is CLAM, which is a high interest PoS currency. It earned popularity because of JustDice, which now uses CLAM rather than Bitcoin. The probable rate is 0.2 percent daily but exchange rate is strong. However, the currency is linked mainly to JustDice. This is a big risk from an investors\u2019 perspectives. They may hold on to their coins as security.\u00a0 The downside is that the value will plunge if users start panic-selling.<\/p>\n