Cryptocurrency is an innovation on financial markets. It is a virtual currency that becomes more popular each day.
As any other currency, it suffers fluctuations from time to time. When main cryptocurrencies were introduced, they attracted large investment. However, starting from 2017 the value of main cryptocurrencies slowly goes down.
The Main Cryptocurrencies
The sector of cryptocurrency is relatively unstable. Price of virtual money fluctuates greatly. Some new cryptocurrencies are so unstable that people do not invest in them at all. However, there are top three virtual currencies that proved to gain strong market position:
- Bitcoin. It is the most popular virtual money. It was introduced as the first electronic money in 2009. Trading Bitcoins is based on blockchain principle. Investors who risked to trade Bitcoin made fortune very quickly. Another reason of Bitcoin popularity was its official legislative acceptance as the method of payment. Not all countries accepted it. However, the most innovative countries did. Total capitalisation of bitcoin today equals to $127,377,634,578.
- Ethereum. This electronic currency has gained its popularity since it became the first initial coin offering project. Investors used this currency to invest into innovative start-ups, getting shares in new businesses in case they developed successfully. Ethereum became not only a perfect initial coin offering, but also the first platform for smart contracts. Today, smart contracts with electronic currencies are used to make every business deal in virtual financial sector. Ethereum tends to be a successful project. Today, its overall capitalisation is $38,250,011,417.
- Ripple. It is a cryptocurrency that successfully operates on virtual markets. It facilitated introduction of Bitcoin currency to the world of finance. It tends to facilitate financial flows among different countries. Previously, for many years such operations were carried out by SWIFT payments. Ripple Net system of payment was introduced not much time ago, but today it handles 1 500 transactions per second. Today, on international financial sector Ripple money is worth $20,175,667,626.
These are the main cryptocurrencies that developed on international financial markets. There are new cryptocurrencies that arise thanks to initial coin offering projects. However, not all of them survive in the world financial market, due to a number of reasons. Some people doubt that an electronic currency can occupy leading positions on the markets. However, it seems to. Even today, it has a significant market share.