• Sat. May 21st, 2022

Is Avalanche the Next Bitcoin?

As the cryptocurrency industry continues its impressive rally from 2020 to 2021, several attractive investments in the space have been revealed. Avalanche has been one of the best stories in the cryptocurrency industry for the past year or so. In fact, its native cryptocurrency, AVAX, is now the 12th most valued, although its $ 26.5 billion market cap is still well off Bitcoin market capitalization of 1.1 trillion US dollars.

With Avalanche growing in popularity over the past year and with AVax’s rapid rally, many investors are interested in cryptocurrency, especially since it hasn’t been around for very long, no ‘having only been launched in mid-2020.

This contrasts with Bitcoin, which was launched in 2009. But while Bitcoin has been out for over a decade, in the early years it slowly gained notoriety among the general public. Some had already seen the potential, however. This has led to the launch of new cryptocurrencies, such as Dogecoin, in 2013.

In 2015, Ethereum launched, with the ability to execute smart contracts, a true game changer. This also launched a new type of blockchain.

So, when you invest in the cryptocurrency industry today, you have two main choices. You have investments like Bitcoin, which is a coin that is used only as a digital currency and runs on its own blockchain. Dogecoin is also an example of a cryptocurrency used strictly as a digital currency on its own blockchain.

Avalanche, however, looks more like Ethereum than Bitcoin. Ethereum is the blockchain, and Ether is the cryptocurrency used to power the blockchain and pay for transactions. However, you can have an unlimited number of tokens, all with their own use case on the network. For example, one of the most popular tokens on the Ethereum blockchain is Shiba inu.

So while digital coins like Bitcoin certainly have their uses, there’s a lot more potential with blockchains that have smart contract functionality, like Avalanche does.

Is AVAX a better investment than Bitcoin?

There is no doubt that Bitcoin is the most dominant cryptocurrency right now and is expected to continue to be so for quite some time. However, that doesn’t necessarily mean it’s the best investment.

There are other cryptocurrencies that could grow at a much faster rate, especially as the sector continues to gain popularity, not only with retail investors, but also with businesses and institutions.

So, as decentralized finance and all other uses of smart contracts continue to grow, these blockchains, such as Avalanche and Ethereum, along with their native currencies, offer the best potential for investors.

Additionally, as Ethereum still has a number of downsides, Avalanche has huge potential to continue growing in popularity.

Why is Avalanche one of the best smart contract platforms?

When considering investing in growing a blockchain with smart contract functionality, it is important to see if it is compatible with Ethereum Virtual Machine (EVM). This means that any decentralized application, for example, deployed on Ethereum’s blockchain can also be deployed on other EVM-enabled chains.

Not all successful smart contract platforms need to be EVM-enabled. However, this is a major advantage because it is a great way to attract users and developers when launching a blockchain for the first time, which Avalanche has going for it.

In addition, Avalanche arguably has better technology than Ethereum and a strong team of developers behind the project. This makes it one of the best Layer 1 blockchains, which is why it has so much potential and has been dubbed the killer of Ethereum.

We’ll see how it goes with the launch of Ethereum 2.0 over the next year or so. Either way, however, Avalanche and Ethereum offer a ton of long-term potential. And because these blockchains can execute smart contracts and can benefit from the massive popularity of new industries, such as decentralized finance and NFTs, both are a better long-term investment than Bitcoin.

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