Hi everyone, welcome back to Republik Rupiah. By now I’m sure you have heard of Bitcoin and Blockchain, but you may have wondered why there are so many Cryptocurrencies? What are they and why are there so many? Today, we’re going to answer all those questions.. and explain why they exist. And if any of them are useful or are they all just Bitcoin imitations…
If you love this content and want to learn about the most exciting technology happening in the world today, also the financial revolution which is happening… Please like and subscribe to the channel! Currently there are thousands of Cryptocurrencies, and most of them–believe it or not–are currently pointless. Some of them on the other hand, are insanely valuable.. and are going to change not only the internet and money, but our lives. So let’s take a look! The best place to go to see all the different coins ranked is coingecko.com Some people use coinmarketcap.com but they are full of ads so we like coingecko better. Now when you get to the first page, you will see all the different currencies ranked in order of ‘market cap’ (or Kap Pasar in Indonesian) This essentially means the value of all the coins in existence of that particular currency, or how much it would cost to buy all of the coins in the world.
This is where it can get a little confusing because some cryptocurrencies issue billions of coins, where others only a few million. Let’s take a look at two altcoin examples: As you can see, their market cap is very relatively similar. But one has a higher price than the other. This is because the one with billions in existence has more of them…
Therefore each individual coin is less valuable on a single unit basis. Make sense? If not, let us know in the comment section below. So if we look at coingecko at all the different coins, we can oversimplify (and I mean seriously oversimplify) most coins into 5 different categories. Now we will look at them all! 1. Payment Coins 2. Smart Contract Platforms 3. Stable Coins 4. dApp Ecosystem Coins 5. Exchange Tokens 1. PAYMENT COINS: Bitcoin is the obvious one here. It was invented as a replacement for cash like the Rupiah or Dollar, but has a little bit morphed into becoming a store of value like gold. Where people are putting their savings into it and just holding it because everyone thinks it’s going to be much more valuable in the future, and don’t want to part with it just yet. There are several spin offs of Bitcoin and copy cats like and more. There are also several other payment coins that have slight additional features like… which has additional privacy features, allowing payments to be unviewable and untraceable.
And also coins like the third biggest crypto XRP. XRP or Ripple is a controversial coin, as its primary use is meant to be for banks to pay each other using crypto. Which is a little bit against the point of crypto (to stop using the banks), and there is scepticism about this actually being used by the banks. 2. SMART CONTRACT PLATFORMS: We cannot go any further here without saying that this whole industry.. is initiated and dominated by Ethereum. Go and watch our Ethereum video after this one! For more information about what a smart contract is and how it works.
Here at Republik Rupiah, we love Ethereum. Essentially they pioneered the concept, and a very very very large percentage of all dApp developers and users are all using Ethereum. It has a really large ecosystem and users which are only getting bigger and bigger by the week. Most of the other smart contract platforms are trying to take market share from Ethereum. There was even a trend where they were referring to themselves as.. ‘The Ethereum Killers’. And while some of these blockchains have some nice features, they don’t have anywhere the usage and development of Ethereum. And the gap seems to be getting bigger. So who are these other smart contract coins? Well, a large portion of the top 100 on coingecko will be alternative blockchains to Ethereum. But the biggest ones are… Tron (which is literally just a chinese copy and paste rebrand of the Ethereum code) 3. STABLE COINS: This is where things get interesting. Because cryptocurrencies have been known to fluctuate in price violently, it has scared a lot of people away from holding them and putting their money towards them. This is the point of stable coins.
These are coins that are pegged or locked in price to a normal currency, usually the United States Dollar. This means that you can buy, sell and trade with all the benefits and freedom of a cryptocurrency. Without the price variations that you get with coins like Bitcoin and Ethereum. Most of these coins are built on the Ethereum blockchain and do have slight variations from being fully decentralised. Like Dai which is backed by Ethereum that’s locked up in a smart contract ensuring the set value of the stable coin. To others, they are run by private companies and they hold 1 dollar in a bank account for every stable coin issued. The main stable coins in circulation at the moment are Tether, otherwise known as… 4. dAPP ECOSYSTEM: This is a really broad topic which covers off many different coins, and has many different sub categories. Essentially, if a coin or token isn’t in one of these other 4 categories…
Then it comes under this section for the point of this video. Of course this group is wide ranging and we will make further videos about this. But essentially, this is a coin that doesn’t normally have its own blockchain but is an app on an existing blockchain (most of the time Ethereum). The categories of these coins we will explain in more detail in the future. But essentially it ranges from gaming, to banking and finance, to computer cloud storage, and VPNs.. you name it! More and more dapps (decentralised apps) are being built all the time. So stay subscribed as we do individual video breakdowns of all the useful ones! 5. EXCHANGE TOKENS: The last group on our list is tokens that are used for exchanges.
When you buy, sell or trade in cryptocurrency.. you will usually do that on an exchange. The exchange is like the crypto shop. Because you are using their shop or platform, they charge a small fee for each transaction. So they can make money, often they will issue their own coin. And if you use their coin your transaction fees will be cheaper. Examples of these coins are..
BNB for the Binance exchange, OKB for the OKeX exchange, LEO for Bitfinex, etc. These exchanges are big and powerful. But essentially when you use them, you are giving your coins to them and trusting that they will be safe. Over the last couple years, there have been other exchanges that are decentralised. These exchanges are apps on the blockchain like Uniswap on the Ethereum blockchain. With these decentralised exchanges you can buy and swap from your own crypto wallet, without trusting another company. Uniswap of course has their own token, UNI. Well, that’s it for today everyone! Stay tuned as we are going to do deep dives into some of the biggest currencies, including how they work and how to use them. Don’t forget to like this video if you enjoyed it, comment below if you don’t understand something or have any requests, and subscribe so you don’t miss out on any of the action! Thanks for joining us today, and catch you next time!
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