Lastly, other cryptos have potentially more appealing traits, such as no mining, dividends, and more useful blockchain characteristics.
As a result, I have put together a short list describing seven non-Bitcoin alternative cryptocurrencies in which investors might consider investing.
But, over the long term, there is a good chance they will outperform Bitcoin.
Coincidently, each of the cryptocurrencies, except for Dogecoin and VeChain, can be bought by setting up an account at Coinbase .
By comparison, Bitcoin was at $7,795, so, at $54,938 today, it is around 7x.
One reason for the disparity is that its blockchain technology is gaining more acceptance.
As The Wall Street Journal points out, its supply is determined by members of Ethereum’s community, not a pre-determined limit like at Bitcoin.
It uses certain validators, who put up a stake that is at risk, who attest to a particular blockchain’s authenticity and get rewarded as a result.
So, in a sense, Cardano is a more progressive, anti-energy-usage blockchain and token system.
Dogecoin’s unique feature is that it allows its supply to grow at a set absolute rate.
However, The Wall Street Journal reports that there is one owner of Dogecoin who owns as much as 28% of its total supply.
Dogecoin has been very popular on social media, as well as a favorite of Elon Musk.
However, Litecoin has been around long enough to call itself “the cryptocurrency for payments.” Its network allows instant, near-zero cost payments around the world.
However, its algorithms are harder to mine and the coin is less popular among miners.
In addition, because of its general acceptance in the crypto community, it often starts trading on new exchanges along with Bitcoin and Ethereum.
Chainlink was founded in 2017 by Sergey Nazarov, who wrote its white paper, along with a Cornell professor.
For example, according to Forbes, Chainlink “offers a service called an oracle to integrate data.” An example is linking finance information from well-known sites into smart contracts.
Stellar Lumens is the token cryptocurrency for Stellar, a blockchain protocol for payments systems. It was started in 2014 by Jed McCaleb, the founder of Mt.
VeChain is a blockchain and cryptocurrency that is focused on improving corporate supply chains and logistics.
The other major feature about VeChain is that it pays a dividend of sorts.
As a result of its dual token supply structure, the total supply of tokens is slightly inflationary as a result.
Each of these altcoins has a unique purpose or focus for the blockchain technology associated with the cryptocurrency.
The main reason, though, to own any of these altcoins, is the prospect of higher price appreciation than Bitcoin.
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