Virtual currency also
known as digital or crypto currency are modern alternative to the real hard
cash and an innovative way of making transaction online. It allows the users to
complete their online payments while using it to purchase and sell products and
services online. Most of the virtual currencies are decentralised in nature
which means they are not controlled and regulated by any government or private
authority though few are exceptional. These currency are effectively created
through mining process wherein the users had to solve crypto graphic puzzles to
create a ‘coin’.
The Popular Virtual Currencies
Litecoin
Litecoin is the altcoin
which has the biggest market capitalization. The market cap of this high
performing virtual currency was around $201.8 million at a price of $8.73.
Litecoin could be efficiently mined by computers owned by the regular consumers
with ease and grace. It doesn’t require exquisite computer chips created
specifically for cracking certain cryptographic problems for generating the
litecoins.
The speed at which
litecoin is quite fast as opposed to other virtual currencies. The litecoin
protocol ensures that a litecoin is create every 2.5 minutes on average.
Litecoin is cheaper in value and easier to transact than other digital
currencies.
Peercoin
Peercoin is the
second-biggest altcoin which have a market capitalisation of $21.2 million and
it is priced at just $1.02. It also mined in its own specific way and it is
regarded as an experiment in distributing the money supply in a different way.
Freicoin
Freicoin has the third
highest market capitalisation in the field of virtual currencies. It has a
market capitalisation of $218,828 and it is priced at just 0.68 US cents.
Freicon implements a demurrage fess which encourages its continued circulation.
A demurrage fee essentially means that the users would be charged up for
hording the currencies and it compels them to use it as much as possible.
Ripple
Ripple has its own
distinct protocols which makes it completely different from the altcoins.
Ripple uniquely bills itself as a payment system as well as currency which are
distributed through a currency exchange. The currency units within the Ripple
protocol are simple called ripples.
Linden Dollar
Linden Dollar is a
distinct virtual currency which has an interesting origin. It first came into
being in 2003 for a 3D virtual world called Second Life. Linden Dollars are
used within the virtual to buy goods and services like clothes, pets and arts.
Linden Lab is the maker the Second Life and effectively it controls how much
currency is to be issued. It gives them the power to manipulate the exchange
rate.
The Most Widely Used Virtual Currency
Bitcoins
is the most widely used and loved virtual at the moment. It offers complete
privacy and secrecy to its users and it has been capped at just 21 million which
means that its protocol don’t allow creation beyond this. Currently it is
trading at a whopping $384. Several of the virtual currencies are offshoots of
the bitcoin and are referred as the altcoins.
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