Three new cryptocurrencies have been added to Bloomberg, and Bitcoin is no longer the star of the show.
As of December 18, 2017, the price of bitcoin is $18,925, an amount that leads new investors to believe they’ve missed the bus.
As a result, a large number of people have shifted their attention to different cryptocurrencies, also known as alternative currencies or altcoins, in search of the next best thing and a high return on investment.
Three cryptocurrencies that stand out in the market are Ethereum, Litecoin, and Ripple – all having been pegged to rise significantly in 2018. Bloomberg has marked this belief with their addition to the terminal, a move which, in itself, has caused an increase in the price of these digital currencies.
Although all operating within the same category, Bitcoin, Ethereum, Litecoin and Ripple are vastly different. Each one has its own applications and is based on its own technology.
Starting out as the first cryptocurrency in 2009, Bitcoin was relatively worthless and unheard of for the first few years of its existence. Based on the very first blockchain, an idea conceptualized by Satoshi Nakamoto, its secure and decentralized structure eventually caught the attention of the world.
By December 2017, it had grown in value by over 23 million percent according to Blockchain. Furthermore, it came close to topping the Google list of most frequently searched terms in 2017 – and is still going strong.
Ethereum is seen by many as the best cryptocurrency second to bitcoin and runs off its own blockchain. It went live in July 2015 and hit $627 by December 12, 2017. The primary use of Ethereum is running smart contracts, which allow partnered applications to function without downtime, fraud, censorship, or interference from third parties.
Litecoin has been around since October 2011 and runs on technology similar to bitcoin. The main difference is that Litecoin is designed to be quicker and more efficient. This is primarily due to its own blockchain’s ability to handle higher transaction volumes, as block generation is processed more frequently.
The price of litecoin is hovering around the $300 mark as at December 18, 2017, and has outperformed the vast majority of the crypto market.
Ripple has the fourth largest market capitalization when it comes to cryptocurrencies. A private company, its main objective is the provision of blockchain technology to major centralized banks.
Prominent companies that use Ripple technology are MUFG, Standard Chartered, UBS, Axis Bank, American Express and RBC, amongst many others. Ripple was initially released in 2012, and its value is fairly close, but below, $1 – a huge positive for investors who expect the price to surge in 2018.
Bloomberg has not commented publicly on the new cryptocurrency additions to their terminal. It remains the most expensive financial data provider, with the cost of one terminal fixed for the time being at $24,000.
According to an inside source the new cryptocurrencies were added primarily for foreign-exchange traders, and also confirmed that Bitstamp is the source of the terminal data. In the market for digital currencies, prices differ between exchanges, as the value is determined individually by each exchange through demand and supply on that platform.