A lot of people are miffed that they missed the Bitcoin explosion. The cryptocurrency went from a few dollars early last year into the $1,500 range and then — Kaboom! — another collapse, to where it is currently trading.
The rise of Bitcoin has been a wild ride. It’s never been an Apollo moon rocket launch straight into space; the trajectory has traced a path more like one of those experimental rockets zigzagging across the sky. Bitcoin has seen a period of jumps and a period of cliff diving drops. That’s to be expected. In a way, Bitcoin is an experimental ship and we’re just beginning to understand these wild gyrations.
Even though Bitcoin gets most of the headlines — and, also, most of the criticism — it’s not the only alternative currency out there.
Here are just a few:
Litecoin — made from Bitcoin’s source code. It’s probably the biggest competition to Bitcoin.
Ripple — This is both a currency and a payment system. So. Bonus. And it’s backed by a lot of big players: Google Ventures, Andreessen Horowitz, FF Angel LLC, Lightspeed Venture Partners, Vast Ventures and Bitcoin Opportunity Fund.
Opencoin — This currency was started in 2007, so the system has been around for a relatively long time.
(We’ll look at more options in future posts.)
Here are some reasons why you may want to keep an eye on Bitcoin, as well as some alternative currencies.
You May Pick a Winner, a Big Winner
One of these currencies become a standard online currencies. It could be the Amazon.com or the Google of e-currencies. And if a dominant currency arises, owning a piece of it would make it more valuable than either of those companies.
It’s a little like playing the lottery, sure, but if you play responsibly, the payoff might be huge!