| |OCTOBER 20219Bitcoin has many things going for it, and since it is the most liquid of the cryptocurrencies and was first to become mainstream, it will likely be the digital coin that holds the payment mechanism spot. However, one of the issues that Bitcoin faces is that the mining process uses a lot of energy. The amount of electricity used to mine a coin is staggering and harmful to the economy. For this reason, many believe that an alternative should be found to reduce the strain on the mining process.The PlatformWhile Bitcoin will likely see consolidation with other payment mechanism coins, the platform that is likely to be the most popular is Ethereum. Ethereum might replace the internet as programmers migrate to a world where digital information can be stored on a ledger. While blockchain technology is coveted, it generates strain in the ecosystem and uses a lot of energy. Despite these drawbacks, most of the coding and domains that are getting built are occurring on Ethereum. To use the platform, you will need to purchase Ether, the digital coint used on the Ethereum platform. Several other cryptocurrency platforms use blockchain, but they are likely to consolidate into Ethereum, allowing this digital coin to survive and thrive. Ethereum has one of the most substantial developer communities and DApps are already live on it. Unfortunately, there are some scaling issues, but there is a significant advantage of being the first to a decentralized platform for smart contracts.A Way to Make a Coin that is Not MinedBlockchain 3.0 is gaining traction. The reason is that high electricity demand is generating the need for solutions. Cardano is one such 3.0 blockchain. Cardano is another realistic competitor to Ethereum for developing smart contracts. Fortunately, Cardano, an alternative digital coin, promises to be scalable, governance, and interoperable. There is another benefit: Cardona (ADA) uses proof of stake (PoS) mining as opposed to proof of work.In the PoS system, the coin holder generates new blocks and verifies the payouts. The PoS system is considered beneficial because it eliminates forced and brute coin mining and ensures a much smoother and more stabilized blockchain development process.The Bottom LineThe upshot is that not all cryptocurrencies will survive. Many of them will, and the niche they handle will go a long way in determining if each will generate liquidity. The first to the market concept is very helpful and will likely keep Bitcoin and Ethereum as the lead digital coins that will consolidate other digital coins. The issue with both of these coins is their scalability and the cost to society. The proof of work concept that drives the blockchain of Bitcoin and Ethereum is very costly and uses a lot of electricity to mine and confirm a transaction. Coins such as Cardano have found a way to confirm a trade that might gain traction and be able to compete with Ethereum despite its dominance so far in the marketplace. While Bitcoin and Ethereum are the most liquid and first to market, other niche cryptocurrencies will survive just like niche businesses flourish. WHILE BITCOIN WILL LIKELY SEE CONSOLIDATION WITH OTHER PAYMENT MECHANISM COINS, THE PLATFORM THAT IS LIKELY TO BE THE MOST POPULAR IS ETHEREUM
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