Adam Hayes, PhD. is an expert in behavioral economics and finance. He holds the CFA and FINRA Series 7, 55% 26 63 licenses and is currently researching and teaching economic sociology and social studies of finance at the Hebrew University of Jerusalem. The first alternative to bitcoin on our list, Ethereum (ETH), is a decentralized software platform that allows users to create and execute smart contracts and decentralized applications (DApps) without any downtime, fraud, control or interference from a third party.
The goal of Ethereum is to create a financial system that anyone in the world can access, regardless of nationality, ethnicity or faith. This makes it particularly attractive to people in countries without state infrastructure or state IDs who can access bank accounts, loans, insurance or a variety of other financial products. Tether (USDT) was one of the first and most popular of a group of cryptocurrencies called stablecoins that aim to link their market value to a currency or other external reference point to reduce volatility. Since most digital currencies, including major ones like Bitcoin, have experienced frequent periods of dramatic volatility, Tether and other stablecoins attempt to smooth out price fluctuations to attract users who might otherwise be cautious.
The price of Tether is directly linked to the US dollar. The system allows users to make transfers more easily from other cryptocurrencies to the US dollar in a more timely manner than real conversion to normal currency. Binance Coin (BNB) is a useful cryptocurrency that works as a payment method for fees associated with trading on the Binance exchange. It is the third largest cryptocurrency by market capitalization.
Those who use the token as a means of payment for the exchange can trade at a discount. Other major currencies include XRP, Solana, USD Coin and Cardano. Compared to bitcoin, Ethereum has no scarcity; the supply of bitcoins is limited to 21 million coins and is widely accepted by companies and governments. However, unlike Bitcoin, Ethereum is not just a store of value; it also powers an infrastructure in which applications can be created. Other cryptocurrencies are issued on Ethereum and serve as the basis for decentralized finance.
Many metaverse projects, including Star Atlas, Axie Infinity, and The Sandbox, use the Ethereum blockchain, as do most NFTs. Another update released in September made the transition from Ethereum to a Web3-ready proof-of-stake mechanism that reduced energy consumption by approximately 99.95% and further increased security and scalability. Ethereum is currently experiencing a significant drop, losing more than 61% of its value since the beginning of the year, which is almost on par with other major cryptocurrencies. Some analysts say that the low price presents a good buying opportunity for investors who have been waiting for the right time to test the waters of cryptocurrencies; it could also attract current investors who buy expensively and would benefit from an average cost in dollars. Binance has two blockchains which reduce the type of bottlenecks that Ethereum is vulnerable to. It's also fast and scalable; Binance is in the process of making the platform more regulatory friendly according to Seeking Alpha - a feature that could be crucial for its longevity and widespread adoption.
In addition, Binance recently launched Bifinity - a payment platform for converting currencies into cryptocurrencies - which will help merchants prepare to accept digital assets as payments according to CoinMarketCap. Tether is a type of “stablecoin” designed to offer a less volatile alternative to bitcoin because it is linked to another asset - in this case, the US dollar. In terms of valuation, Tether usually has a 1:1 relationship with the dollar meaning it is less volatile than cryptocurrencies such as bitcoin and ether. The next major cryptocurrency to hit the market is TAMA. TAMA is the gateway token to the Tamadoge ecosystem and has been growing since its initial exchange offering (IEO) on OKX - rising more than 1,000% compared to its pre-order price. Cardano (ADA) is an “Ouroboros” proof-of-stake cryptocurrency created with a research-based approach by engineers, mathematicians and cryptography experts. Brave has a long way to go before it's competitive with the largest web browsers but it has more than 50 million monthly active users making it one of the most successful crypto projects so far.