With the rise in popularity of Bitcoin in 2017, other cryptocurrencies gained public recognition and interest. Where, during the years of 2017 and 2018, numerous cryptocurrencies flooded the market with Initial Coin Offerings (ICO).
Virtually every single one of those newly introduced cryptocurrencies grew drastically in value as soon as it was made available to investors. During that time, this trend was considered as pure cryptomania. In a way it was some sort of a crypto bubble.
Following the usual pattern, this sudden hype died down, in other words the bubble burst. Most alt-coins could not stand the test of time and demand patterns grew in negative direction for those.
Currently more than 5,000 cryptocurrencies available in the crypto market, but only less than 1,000 are actively traded on exchanges and even fewer have viable economic prospects. Tezos(XTC) and Cardano(ADA) are few of such alt-coins which were able to survive and have high potential in market prospects. Even though they are yet to become the major players in crypto market.
Cardano’s potential to be next Bitcoin?
Cardano’s ADA token was launched in September 2017 and since then the currency’s value has risen by more than 1500%. As Investopedia defines, Cardano is a blockchain project founded by Charles Hoskinson who is the co-founder of ethereum, to “provide a more balanced and sustainable ecosystem” for cryptocurrencies.
In Cardano’s website they have said that ADA is the only token with, “scientific philosophy and research-driven approach.” Meaning, that it is an open-source blockchain which allows scientists and programmers in academia to conduct peer-reviews.
Cardano mainly target on fixing scaling and infrastructure issues that arose in Bitcoin. Where, they call ADA token as the third-generation cryptocurrency. Cardano plans to solve further problems such as, scalability, interoperability, and sustainability, which are common in cryptocurrency platforms.
The latest initiative by IOHK(company behind Cardano), is to make Cardano the only truly decentralized blockchain network on the market by March 31st. Thereby, the company will not engage in blockchain production of Cardano, instead, it will be produced by produced by independent stake pool operators.
Tezos’s potential to be next Bitcoin?
Tezos is a self-governed and amendable blockchain network that supports smart contracts. Having the Tezos token XTC launched in 2017, the token currently has a market capitalization of $2.3 billion. The significant growth of Tezos is associated with its competitive advantages over Ethereum.
Tezos uses Defi services through smart contracts. Smart contracts are sets of code used to replace terms of a real contract. Hence, these can hold cryptocurrencies, contracts can be executed based on the codes uploaded to the blockchain.
When disputes arise over network upgrades, blockchains which use proof of work tend to fork their network. Such instance is where Bitcoin forked into Bitcoin Cash. Most of the time this divide the cryptocurrency users and reduce the size of the network as well. Tezos were able to overcome this issue in their token XTC, giving a competitive edge over Bitcoin.
Both Cardano and Bitcoin are in head to head in the competition to replace Bitcoin. With the new initiatives that these cryptocurrencies come up with possibilities are there that market may respond favorably and attract investor attention. Nevertheless, it need to be said that Bitcoin is too young to be replaced.
Source: Daily Hodl.com