Top Virtual Currencies in the World
According to European Central Bank “Virtual currency is a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community.”
The basic definition of Virtual Currency is-
•Deleted “or that is incorporated into payment system technology”
•Added exclusion for digital units used within online gaming platforms that can be redeemed for real-world goods, services, discounts of purchases, but cannot be converted into or redeemed for Fiat Currency or Virtual Currency
•Added exclusion for digital units used as part of a closed loop payment card
The advantage of virtual currencies are it manages the user anonymity in any transaction. His purchases are never associated with his personal identity, much like cash-only purchases, and cannot be traced back to him. No third-party interruptions needed. Transaction fees is very low with virtual money. Users can pay for their coins anywhere they have Internet access. This means that purchasers never have to travel to a bank or a store to buy a product.
Bitcoin typically garners most of the coverage in the mass-media when it comes to virtual currency, in part because it was the first fully implemented currency of its kind. It has also become the largest virtual currency in terms of total market value.
Here are the top digital currencies picked from the lot-
Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
Litecoin, the second largest cryptocurrency in the world was launched in the year 2011. It was created by Charlie Lee and can be described as the second-in-command to Bitcoin. Litecoin is based on an open source global payment network that is not controlled by any central authority and uses “scrypt” as a proof of work, which can be decoded with the help of CPUs of consumer grade. Overall it is very secure. Litecoin ecosystem also pretty good, it is traded in a lot of exchanges and has an active development.
Like Bitcoin, Ripple makes money easier to move around the world. But while Bitcoin is a currency, Ripple is an internet protocol that allows for financial transactions in any currency. For example, a user can transfer dollars over Ripple, and the other party can receive euros. Ripple Labs aims to make Ripple the standard protocol used by the world’s banks to transfer money around the globe as cheaply and quickly as sending an e-mail.
Dogecoin is another type of cryptocurrencies that launched in December 2013. Dogecoin was created by Billy Markus and Jackson Palmer. Dogecoin presents itself broadly based on the Bitcoin protocol, but with modifications. It uses scrypt technology as a proof-of-work scheme. There is no limit to how many Dogecoin can be produced i.e. the supply of coins would remain uncapped. Dogecoin deals with large numbers of coin that are lesser in value individually, making the currency more accessible with a low entry barrier and fit for carrying out smaller transactions.
Peercoin, also referred to as PPCoin, Peer-to-Peer Coin and P2P Coin, was created by software developers Sunny King and Scott Nadal. It was launched in August 2012 and was the first digital currency to use a combination of proof-of-stake and proof-of-work. Peercoin seeks to be the most secure cryptocoin at the lowest cost, by rewarding all users for strengthening the network. Peercoin Could Use a Different Mining System Than Bitcoin, Allowing It to Waste Less Power. Peercoin is the Official Money at a Star Trek Convention Called Trek Con. Peercoin is an inflationary currency since there is no fixed upper limit on the number of coins.
Bitcoin has a huge lead in terms of its market capitalization, acceptance and usage. Many African countries are already using bitcoin as their primary currency. However, some of the peer currencies are slowly developing their own fan following, though none is currently in a position to challenge the dominance of Bitcoin. One thing which common to the whole virtual currency family is volatility in the prices. Other than the above, some other cryptocurrencies which are popular are counterparty, mastercoin, digitalcoin, novacoin, feathercoin and zetacoin, among others.