As Bitcoin continues to soar in value, its attractiveness has increased for many investors but given the volatility and risks attached with this crypto currency, it also adds uncertainty that many investors want to avoid. So here’s the good news: Bitcoin is not the only crypto currency to hit the market! Let’s go through the substitutes for Bitcoin that better fit the purpose of mainstream use.
This crypto currency allows you to create you own website and store its location to allow other people to visit it. The website will be uncensored and free of government scrutiny which will reduce downtime as well. This has generated a great appeal for Namecoin. However, all transactions are recorded in the block chain. Your ‘bit’ domain can be registered for 0.01 Namecoins, which is a negligible amount but only 21 million coins of this cryptocurreny can ever be in circulation.
This is becoming famous for its international payment system. So it’s not just an ‘alt’ coin, it a currency exchange platform. Offering the use of a ticker symbol XRP, you instantly become a part of peer-to-peer banking. The transactions done in Ripple smooth and almost free of cost. With Ripple, you can both transfer and convert any kind of currency.
Based on Bitcoin’s open source code and being structurally similar to Bitcoin, this currency is still the preferred choice because of its faster block rate of 2.5 minutes as compared to 10 minutes offered by Bitcoin. As of now, this is the easiest crypto currency to mine which is another reason for its increasing popularity. 84 million of Litecoins can ever be in circulation which is 4 times more than the limitation applied to Bitcoin.
This is a decentralized currency which provides complete freedom to users when using this currency. Once you have access to the internet, you can send messages anytime, anywhere. This peer-to-peer currency has generated much buzz because of the absence of geographical imitations. This currency is based in NewZeeland and has been established by Kim Dotcom of Megaupload fame.
Unlike the other crypto currencies, there is no limit to the number of Peercoins in circulation. It is based on the proof-of-work and proof-of-stake system that is apparently described as making the rich, richer. The system works such that the more coins you have, the more you can easily mine new ones. If you don’t use or exchange your peercoins, you get an added benefit as it impacts your mining value positively. Peercoin is likely to increase at a perpetual rate and thereby increase inflation, at a steady rate of 1 percent. It is the third largest crypto currency in circulation.
These are not the only alternatives to Bitcoin. There are several others that have surfaced and that are increasingly being used by many people. However, it is important to note that these currencies are still not fully developed so people should be careful when investing in them.