Exceptional 4 Types Of Digital Currency On The Market Now
Introduction: What Are The 4 Main Types Of Digital Currency
Blockchain brings together four main types of cryptocurrencies.
It is a digital currency that can be sent to other people. It can be used as a gift, service, or product.
You know it’s just like the money we use in our bank accounts (USD, Euro, etc.).
It is digital; it is not physical.
– Read more Crypto information about “How Crypto works” here.
The Best types of digital currency is "Defi"
- The real founder of Bitcoin is anonymous, but goes under the name Satoshi Nakamoto and their identity is still a mystery.
- Launched in 2009, Bitcoin is the world’s largest cryptocurrency by market capitalization.
- Unlike fiat currency, Bitcoin is created, distributed, traded, and stored with the use of a decentralized ledger system, known as a Blockchain.
- Bitcoin’s history as a store of value has been turbulent; the cryptocurrency skyrocketed up to roughly $20,000 per coin in 2017, but less than years later, it was trading for less than half of that.
- As the earliest virtual currency to meet widespread popularity and success, Bitcoin has inspired a host of other cryptocurrencies in its wake.
Alternative types of digital currency is "Altcoin"
- The term “altcoins” refers to all cryptocurrencies other than Bitcoin.
- Some of the main types of Altcoins include mining-based cryptocurrencies, Stablecoins, security tokens, and utility tokens.
- Altcoins might only include mining-based cryptocurrencies other than Bitcoin in the future as usage continues to develop with technology.
- Altcoins are generally developed to address shortfalls in Bitcoin.
For example: Litecoin provides faster payment processing and Stablecoins are tied to external assets to reduce volatility.
- Ethereum and Ripple were the largest Altcoins by market capitalization in February 2020.
The 3. Type of digital currency is "dApps"
- MakerDAO regains a leadership position in total value locked by surpassing $1.5 billion.
- MakerDAO is responsible for 21% of the total value generated in the DeFi space right now.
- Aave is right behind MakerDAO with $1.35 billion in TVL with active wallets growing by 25% in September.
- Aave is the number one lending protocol in DeFi right now.
- Aave’s LEND token value has increased by 952% in three months.
- While daily wallets on Curve skyrocketed recently from 102 to 1,235 within 3 months, the dapp lost its share in value. TVL is close to $1 billion now.
The 4. types of digital currency are "Stable Coins"
- All Tether tokens are pegged at 1-to-1 with a matching fiat currency (e.g., 1 USD₮ = 1 USD)
- Continued rise into the Top-10 cryptocurrency rankings
demonstrates Tether’s importance, as well as the overall
market demand for stablecoins
- More centralized and opaque than other stablecoins, but
making efforts of late towards greater transparency
- Despite entrance of new competitors, continues to dominate
the stablecoin market
- Most similar to: USDC, TrueUSD, AAA Reserve, and Stably
The 5. Digital Art Can Be The Future
- NFT’s are past the peak of inflated expectations and troughs of disillusionment, hiking up the slope of enlightenment in virtual artwork and virtual collectibles
- NFT’s enable player wishes of possession, series, fandom, and investment, making them an interesting figure to be carried out as a generation to gaming.
- Existing games using NFTs like Axie Infinity have created interesting NFT economies: what’s left to manifest is integrate an interesting gameplay meta with the collectible/investment components in a decentralized fashion