Investors prefer alternative cryptocurrencies to Bitcoin


Many investors feel that they have missed the bitcoin boom and are looking for a different path to cryptographic wealth. They think that bitcoin is expensive, so investing in it would be unprofitable, while other cryptocurrencies like Dash have an accessible price and a higher growth rate.
Dash has risen to $ 45 dollars since it was worth $ 11.50 dollars at the beginning of January 2017, according to the price index in CoinMarketCap. With a market capitalization value of $ 326 million dollars, Dash has become the third largest cryptocurrency , behind Bitcoin and Ether. Other digital currencies are in motion as well, including Monero and Zcash, to name a few of the more than 700 there are.
"They think they've lost most of the boom, so they're starting to look for other currencies that could be their ticket," said Adam Wyatt , chief operating officer of BullBear Analytics, a research firm and crypto-currency analysts.
The cryptocurrency trade is speculative. There are several characteristics that give value to each type of currency: a restricted offer, the willingness of merchants to accept it as a means of payment, technical characteristics and, ultimately, the faith that investors place in them.
Chris Burniske, analyst at ARK Investment Management LLC, sees signs that some investors are taking out bitcoin money and putting funds into so-called alternative currencies . Your company operates a traded fund with 5% of its assets in blockchain - Bitcoin's underlying distributed accounting technology - and peer-to-peer computing.
The expectation of whether the Securities and Exchange Commission approves or rejects the first exchange-traded fund (ETF) based on Bitcoin on March 11, raised the price of the cryptocurrency to a cap close to USD 1,300 last week, in anticipation of the interest of new investors in the digital currency, and keeps it in a range close to USD 1,200 today.
A decision - one way or another - could lead to greater volatility. If a rejection of the SEC occurs, "probably the entire cryptocurrency market as a whole could fall," CoinDesk analyst Alex Sunnarborg said in an interview.

BENEFITS OF A BITCOIN ETF

An approved ETF would make investing in Bitcoin simpler for small traders and institutions, while driving the price of the digital currency. Nearly $ 300 million could be deposited in an ETF in its first week , Spencer Bogart , head of research at venture capital investor Blockchain Capital ,  said in an interview .
Trading Bitcoin now is not easy. Investors have to open accounts or wallets and then buy cryptocurrencies through online exchange houses. Or they can invest in Bitcoin Investment Trust, which trades at the counter, often with a strong premium on the cryptocurrency. Another possibility is ARK Investment Management LLC, which operates an ETF with 5 percent exposure to the blockchain.
With a publicly traded bitcoin-based ETF, bitcoin trading transactions could be carried out simply by calling a broker or buying shares online, giving it amplitude (greater number of participants), and depth to the bitcoin market (transactions for amounts well in excess of the current ones).

NET CONGESTION

One problem that bitcoin faces is the speed of the network, which has been slow. In times of high congestion, bitcoin transactions have taken hours to execute . While it is faster than a traditional money transfer through a bank, it is too slow for some users. Bitcoin developers are having trouble agreeing on ways to speed up the network, and stagnation is pushing some investors to look at alternative currencies.
"This creates tension and uncertainty," said Leah Stephens, a writer in the Kansas City area who has investments in cryptocurrencies such as steem, dash, monero and bitcoin. "Many traders are covering themselves on alt coins because of these reasons."
Other currencies have characteristics that bitcoin lacks: Dash transactions are confirmed much faster, so it may be better for payments. Many of the currencies that are in a winning streak - such as Dash, Monero and Zcash - offer additional privacy protection in excess of bitcoin.
Until Bitcoin resolves its scalability problems and the saturation and slowness of the network, it will not be able to continue to develop and grow more than other cryptocurrencies; something that urges the whole community to promote its adoption in other commercial and industrial sectors.

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