Since their inception, fiat, digital, or decentralized currencies have been about numbers and mathematics. Despite the obvious attention on virtual and digital assets including tokens and NFTs, everything about the crypto world ultimately comes down to numbers.
Fathom this, Bitcoin started its journey in 2009 valued as ‘zero’ and now BTC, its symbolized form often seen on BTC Bull Token, has amassed unimaginable heights.
Since the domain of crypto has been embedded deeply into the contemporary finance system, there are a myriad number of factors- politics, economics, banking, and the tax system- that govern these constantly moving numbers in cryptocurrencies.
Keeping track of such intricate and interconnected systems, which are constantly moving, is a laborious task indeed. Added to this, financial terminology and currency abbreviations such as EUR to ZAR or ETH to USD, can complicate things further.
In this article, we attempt to untangle the complex relationship between cryptocurrencies and numbers to give readers a holistic overview of the numbers game, to stay one step ahead in the volatile world of crypto.
What are the major cryptocurrencies prevalent today?
Bitcoin
Often referred to as the ‘’gold” among cryptocurrencies, Bitcoin first came into existence in August 2008 and the first transaction using BTC happened in January 2009 totaling 10 BTC. Once valued at nothing, Bitcoin has seen phenomenal growth over the past decade, making its current value near $66000 today.
As per experts, the value of Bitcoins has grown so significantly that it could start having an effect on national and international currency values. Even on the political front, Bitcoin has been termed as a major disruptor of voters in the upcoming U.S. presidential elections.
How Many Other Cryptocurrencies Exist:
Bitcoin was not the first form of cryptocurrency to be invented, but it has become the largest in terms of sheer numbers of market share. Since its inception, over 20,000 other cryptocurrencies, also known as altcoins or alternative coins, have joined the market, and traded through more than 500 online exchanges. Many of the 20 000, are either inactive or used as technical and design test sites. One of the biggest reasons for the huge number of competing cryptocurrencies is the lack of a significant barrier to entry.
Top Cryptocurrencies Vying For A Place Alongside Bitcoin:
The following five cryptocurrencies are the closest to Bitcoin, based on their market capitalization. Market capitalization (market cap) is derived by taking the amount of coins in circulation and multiplying it by the value of each coin. Because each coin trades in its own currency, the individual cryptocurrencies are first converted to US dollars.
1. Ethereum (ETH)
Bitcoin’s closest rival, Ethereum was launched in 2015, as a decentralized software platform, meant to run without any downtime, control, the chance of fraud or interference from a third party. Ethereum says that its goal is to create a suite of financial products that anyone in the world can access freely, regardless of nationality, ethnicity, or faith. This is great news to parts of the world population who struggle to gain access to the banking sector, bank accounts, and easy use of international transfers, as well as secure savings.
2. Tether (USDT)
First released coins in 2014. It was one of the first stablecoin to exist on a platform. Stablecoins aim to take much of the volatility out of cryptocurrency trading by pegging themselves to a commodity or fiat currency. Fiat currencies are national currencies, such as the euro, British pound and Australian dollar. Tether pegs itself on the US dollar. Its aim is to facilitate easier transfers of traditional currencies digitally.
3. Binance Coin (BNB)
Founded by Changpeng Zhao, Binance originated as an exchange, allowing cryptocurrencies to be bought, sold, and traded on its marketplace. Binance Coin was used as a payment method to cover any fees for trading on the Binance Exchange. These days, Binance Coin can be traded for other cryptocurrencies and be used to purchase goods and services, such as airline tickets.
4. Solana (SOL)
Founded in 2017, Solana has been nicknamed the ‘Ethereum Killer’ as it has begun to perform more transactions/second than Ethereum with lower transaction costs.
5. USD Coin (USDC)
A stablecoin that has its price on the US dollar, USD Coin inspires consumer confidence in continued coin value by holding an amount of US dollars equal to the quantity of USD coins in open circulation.
What are some reputed Crypto analysis websites available?
1. Crypto.com
Crypto.com offers a simple, easily accessible conversion tool to compare a variety of cryptocurrencies to major global currencies. In addition, users can find historical price data, a FAQ section and news on crypto on the site.
2. CoinMarketCap
CoinMarketCap is revered for its extensive database. It gives users access to market cap information, historical data, real-time pricing and graphics, as well as being able to keep track of an individual’s portfolio.
3. CryptoCompare
CryptoCompare gives those interested in investing in several cryptocurrencies or looking to choose the best one, the opportunity to compare them, helping them make the difficult crypto buying decision between Bitcoin and its competitors. Users will have access to market insights, analysis and the support of a like-minded community via discussion board.
4. CoinGecko
CoinGecko offers its users similar features to its competitor websites, aiming to present highly detailed information to investors.
5. Blockchain.com
Blockchain.com is primarily a cryptocurrency wallet. A wallet is similar to a bank account number, making sure that cryptocurrency reaches its destination. In addition, blockchain.com offers educational resources and analytical tools that are suited to users of several skill levels.
Conclusion
Cryptocurrencies have required an enormous amount of development and thought, to achieve the global financial impact that they have. Understanding them and the exchanges they trade on, will make you more knowledgeable and inevitably, a better investor.
