Cryptocurrency, Bitcoin, is best described as the great grandfather of cryptocurrency. Launched in 2009, Bitcoin is the first digital currency that targets to shift the position of cash.
Twelve years later, Bitcoin has taken many steps towards mainstream acceptance. However, new coins also appeared.
According to The Motley Fool, none of the new coins can touch Bitcoin in terms of price or market cap. But as technology develops, so does the potential for one of them to eventually replace Bitcoin.
Here are four cryptocurrencies that may have a chance of overtaking Bitcoin, as summarized by Kontan from The Motley Fool:
1. Best position to replace Bitcoin in terms of functionality: Ethereum (ETH)
Ethereum is the second largest cryptocurrency by market cap, and currently, the currency that crypto is the most likely to replace Bitcoin. Ethereum was the first to introduce smart contracts, which are small pieces of code that live on the blockchain.
That said, smart contracts are a game changer. They are behind many major developments. For example, decentralized finance and non-fungible tokens, which have driven the dramatic growth in cryptocurrencies in recent years.
These small pieces of self-executing code make it possible to formalize an agreement with someone without involving a third party. For example, a farmer may take out insurance against adverse weather conditions, and the policy will automatically pay out if those conditions are met.
2. Best position to replace Bitcoin in terms of sustainability: Cardano (ADA)
Cardano is known as a third generation cryptocurrency which aims to fix some of the problems faced by Ethereum and Bitcoin. Its mission is to use blockchain technology to solve real-world problems, and it requires a research-based approach to development.
This popular digital currency has offices in 15 countries on four continents, and one area that sets it apart from other blockchains is its work in Africa.
For example, Cardano has partnered with the Ministry of Education in Ethiopia to store the academic records of 5 million students on its blockchain.
False academic certifications are a huge problem in Ethiopia, and can stop students from being able to study or work abroad. This pilot project could be life changing.
Cardano’s energy consumption is a fraction of Bitcoin or Ethereum. Both use enough electricity to power the entire country every year. The Cardano network uses only 6 gigawatt-hours per year, which is roughly equivalent to the monthly energy consumption of states like New Jersey.
3. Best position to replace Bitcoin in terms of speed: Solana (SOL)
Bitcoin can only process about seven transactions per second (TPS), so almost all cryptocurrencies are faster. But Solana was much faster. This cryptocurrency can process over 50,000 TPS, making it much more scalable than Bitcoin and many other cryptocurrencies.
Solana is a programmable blockchain that runs smart contracts. And, like Cardano, the environmental costs are less. There are currently more than 300 projects running on the Solano system, including decentralized cryptocurrency exchanges, stablecoins, and wallet applications.
4. Best position to replace Bitcoin in terms of volatility: Digital dollar
Actually, digital dollar is not a traditional cryptocurrency and its existence is still under consideration. However, central bank digital currencies (also known as CBDCs or govcoins) can pose a serious threat to Bitcoin as a form of digital payment.
These centralized coins are backed by each government so they offer the benefits of Bitcoin, but without the price fluctuations. One big obstacle to mainstream Bitcoin adoption is its volatility which digital dollars can definitely do it.
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