The stock market may be the most traditional path investors have used to create wealth over time, but in recent months, it's taken a clear back seat to cryptocurrencies. Since 2017 began, the combined value of all cryptocurrencies jumped from less than $18 billion to as high as $836 billion just a week ago. We're talking about an increase in value of more than 4,500% in about a 53-week span. It has, by comparison, taken the broad-based S&P 500 decades to deliver similar returns.
The emergence of blockchain pushes crypto valuations into the stratosphere
Though there are no shortage of catalysts behind this rally in digital currencies, much of the credit belongs to the emergence of blockchain technology. Blockchain is the digital and decentralized ledger that underpins virtual coins and is responsible for logging all transactions, without the need for a financial intermediary, like a bank.
Image source: Getty Images.
For instance, blockchain transactions are being validated 24 hours a day, seven days a week, meaning they often process in seconds, to perhaps a few hours at the most, compared to waiting up to three to five days in the case of cross-border transactions. Also, without the need for a financial middleman, it's presumed that transaction costs will be considerably smaller. Finally, the noted decentralization means there's no central hub where transaction information is stored. This ensures that no single party will have control over a cryptocurrency, and that cybercriminals could never bring a digital currency to its knees.
Which cryptocurrencies have the fastest transaction speeds?
Ultimately, though, what matter is whether blockchain technology has the capacity to process transactions with a similar expediency as today's networks. If they don't have the ability to meet or exceed current networks, then blockchain could struggle to get off the ground.
Image source: Getty Images.
Total transactions per second:
- Visa: 24,000
- Ripple (CCC: XRP-USD): 1,500
- PayPal: 193
- Bitcoin Cash (CCC: BCH-USD): 60
- Litecoin (CCC: LTC-USD): 56
- Dash (CCC: DASH-USD): 48
- Ethereum (CCC: ETH-USD): 20
- Bitcoin (CCC: BTC-USD): 7
Here's what stands out about this transaction-speed data
The first thing that probably stands out is just how far ahead Visa is from the rest of the pack. Visa has had many decades to adapt and upgrade its payment processing infrastructure and networks, leading to a transaction rate of up to 24,000 per second. That's unlikely to be challenged anytime soon, so breathe easy, Visa shareholders.What might be an even bigger shock is just how far ahead Ripple is relative to mobile payment platform PayPal, as well as its crypto peers. At 1,500 transactions per second, Ripple is more than six times faster than PayPal. What's more, Ripple's transactions comes in at just a fraction of a cent, which could prove significantly more attractive than PayPal, depending on the sender and receiver of funds.

Image source: Getty Images.
Also, pay attention to Dash and Litecoin, which are both processing transactions quicker, and for a lower cost, than bitcoin and Ethereum. Litecoin, which some have nicknamed "bitcoin-Lite," has aspirations of significantly growing its merchant network. Though founder Charlie Lee believes in cooperation with bitcoin, not competition, it could very well be the greatest competition bitcoin faces.
Meanwhile, Dash is part of the burgeoning privacy-coin movement. Privacy coins take the perceived privacy and anonymity associated with blockchain transactions and cranks it up a whole bunch in order to conceal the identity of the sender and receiver of funds. To see that a leading privacy coin is nearly performing on par with Litecoin and Bitcoin Cash with regard to transaction processing speed is impressive.

Image source: Getty Images.
Two big blockchain concerns
However, the emergence of blockchain technology is also no guarantee of success.One of the biggest concerns revolves around just how well they'll perform once fully ramped up. Bitcoin and Ethereum are substantially slower than PayPal and Visa as a result of being a popular destination for cryptocurrency users and/or enterprise customers. Yes, Ripple offers a substantially faster network now, but it remains to be seen what happens if it gains a number of banking clients and moves beyond just a handful of real-world tests. Blockchain hasn't really been put to the test yet, and until it has, it would be foolish (with a small "f") to assume it can keep up with traditional payment networks.
We should also remember that the barrier to entry among cryptocurrencies is incredibly low. It takes only time, money, and a team that understands how to write computer code, to develop blockchain technology and a tethered virtual coin. This suggests that today's best blockchain could be supplanted with relative ease by a newcomer.
Few would argue that blockchain technology has game-changing potential. But until we actually see that potential move well beyond demos and small-scale projects, cryptocurrencies remain an extremely risky investment.
8 Comments
Good way of describing, and good piece of writing to get information on the topic of my presentation focus, which i
ReplyDeleteam going to deliver in college.
Pretty part of content. I simply stumbled upon your blog and in accession capital
ReplyDeleteto assert that I get actually enjoyed account your weblog posts.
Anyway I will be subscribing to your feeds or even I success you get admission to constantly quickly.
Very nice post, I am very satisfied with your tips and remedies, they very useful to us. You made a good site and you giving us such great remedies and tips and suggestions they all very help us. I read your articles they amazing. Thanks for sharing the best article posts.
ReplyDeleteThankyou for share with us.
ReplyDeletehttp://getbestdelight.com/
I am impressed with your site it very helps us and useful I follow you always You giving such a good nice tips and suggestions thanks for sharing with us You made this site is awesome thank you all your thoughts
ReplyDeleteLooking for a reliable printer service provider, dial the toll-free number of Epson printer customer support. The technicians will provide you with assistance for all technical issues related to the Epson printer.
ReplyDeleteIf you are unable to set up your Brother printer, get support from the experts, dial the toll-free number of Brother printer customer support and get experts to advise for how to setup Brother printer.
ReplyDeleteHp printer support | Dell printer support
Dealing with Epson printer support issues? Get in touch with Epson printer customer support by dialing the toll-free phone number. The support service is available 24/7.
ReplyDeleteGood day precious one, We love you more than anything.