Blockchain and cryptocurrencies beyond Bitcoin.

Since the introduction of Bitcoin, other cryptocurrencies known as Altcoins have been launched. These are broadly classified into two types, security tokens and utility tokens. Security tokens are linked to a business and are typically launched in an initial coin offer or ICO, like equity shares of businesses. These may represent ownership and involved dividends. Utility tokens on the other hand are tokens issued as a claim on services.

This table shows the top 10 and bottom 10 cryptocurrencies as of January, 2021. As can be seen from a market capitalization perspective, Bitcoin takes the top spot in all there. Were close to 9,000 cryptocurrency offerings at the time, each serving its own purpose.

The cryptocurrency with the second largest market capitalization is the Ether Cryptocurrency generated by the Ethereum network. The objective of Ether is to replace internet third parties. Uh, for example in the mortgage market currently, ether is listed on a number of exchanges, including the CME, where Ether Futures can be traded. To date, the Ethereum network has given rise to many Ethereum blockchain based tokens such as bin coins, whether it is Bitcoin or Ether. The value of cryptocurrencies displays significant volatility. The two price graphs show the price movement of Bitcoin and Ether respectively during the period April 15th, 2021 to May 15th, 2021. The high low for Bitcoin during the period was from 63,237 to 48,666. A 29.9% difference while the high low for Ether during the same period was 4,179 on May 11th to 2,211 and 89% difference with this kind of volatility, if companies such as Tesla were to accept Bitcoin as payment, would the valuation of companies be significantly impacted in order to take a risk off approach and avoid volatility arising from cryptocurrency based holdings and transactions? And another type of cryptocurrency that ties its value to the US dollar was introduced. Stable coins are digital assets designed to maintain a stable price between the cryptocurrency and the US dollar when sending and receiving money, but still retain the advantageous features from the crypto ecosystem. Note that stable coins are not only backed by US dollars, they can be backed by other fiat currencies, commodities, And even other cryptocurrencies. For example, a wrapped Bitcoin. Also important to note that stable coins are not always stable. Their prices often vary markedly. Tether as a cryptocurrency with the third largest market capitalization at 30 billion US dollars is designed to replicate the US dollar with a main objective to facilitate business transactions using cryptocurrency, ensuring efficiency, hence low cost and transparency. Tether was incorporated in Hong Kong and is traded on 162 exchanges, mostly as Bitcoin pairs suggesting that there is a clear demand for users and traders of stable coins.