Bitcoin, the controversial cryptocurrency founded by an anonymous development team, is currently the most valuable currency asset when compared to the United States dollar. The skyrocketing valuation of Bitcoin has taken place over a few months in 2017 due to an unexpected rally that has made spectacular headlines.
Investors Look to Cryptocurrency
Investors who want to take advantage of the ongoing rally of cryptocurrencies may not be able to do so if they narrow their focus on Bitcoin, which is not the only cryptocurrency that is rising in terms of valuation. As of mid-June 2017, the value of BTC/USD was $2,680; this amount becomes a barrier to entry for potential investors who may be better off with smaller digital currencies such as Ethereum and OneCoin.
Ethereum is a digital currency supported by a public blockchain similar to Bitcoin. This cryptocurrency has seen an even greater valuation than Bitcoin, rising to more than 4,000 percent since the beginning of the year. This massive return on investment is split among two tokens based on Ethereum blockchain: the official token is called “ether” while the other is a fork known as Ethereum Classic.
There are a few reasons that explain the meteoric rise of Ethereum; first of all, its blockchain is more advanced than Bitcoin’s, which can explain why the central banks of Russia and Singapore have adopted Ethereum for future digitization of their sovereign fiat currencies. Moreover, the United Nations is also interested in using Ethereum for its financial operations. This advanced blockchain has a lot of promise and is only getting better.
OneCoin + Ethereum to Overtake Bitcoin
OneCoin is comparable to Ethereum in the sense that developers have improved upon the open source blockchain; however, it is important to note that OneCoin runs on a private and centralized blockchain for the purpose of implementing features associated with traditional financial transactions. One such feature is called “Know Your Customer,” which is observed by banks around the world. Whereas Bitcoin has seen a lot of negative press for its adoption as the currency of choice by illicit marketplaces in the dark web.
The problem with Bitcoin and other currencies that promote anonymity and plausible deniability is that they often end up being used for money laundering purposes OneCoin emphasizes Know Your Customer rules to prevent use of the currency by nefarious currency holders. OneCoin also offers an investment opportunity for investors who are interested in mining, which is something that has become very difficult to do with Bitcoin.