Unveiling the Cryptocurrency that Shined in 2017: Which was the Best to Invest In?

Introduction:

In the whirlwind of cryptocurrency investments, 2017 emerged as a banner year for digital currencies. With the rise of Bitcoin and other altcoins, investors were left wondering which cryptocurrency offered the best potential for growth. This article delves into the landscape of 2017, highlighting the standout cryptocurrency that investors should have considered for their portfolios.

The Cryptocurrency Boom of 2017:

The year 2017 was a pivotal moment for the cryptocurrency market. Bitcoin, which had been hovering around $1,000 since late 2016, skyrocketed to an all-time high of nearly $20,000 in December. This meteoric rise sparked a frenzy of interest in the cryptocurrency space, prompting many to ask: which cryptocurrency should I invest in?

The Contenders:

Several cryptocurrencies were vying for the title of the best investment in 2017. Here are some of the notable contenders:

1. Bitcoin (BTC): As the pioneer of the cryptocurrency market, Bitcoin has always been a go-to investment. Its decentralized nature, limited supply, and growing acceptance as a form of payment made it a strong candidate for the best cryptocurrency to invest in.

2. Ethereum (ETH): Ethereum, the second-largest cryptocurrency by market capitalization, offered a platform for building decentralized applications. Its smart contract functionality and potential for innovation made it an attractive investment option.

3. Litecoin (LTC): Litecoin was often seen as Bitcoin's silver lining, offering faster transaction times and lower fees. Its similarities to Bitcoin, yet distinct features, made it a popular choice among investors.

4. Ripple (XRP): Ripple's goal of revolutionizing the global payment system with its XRP token was a compelling reason for investors to consider it. Its partnerships with financial institutions and potential for cross-border transactions added to its appeal.

5. Cardano (ADA): Cardano, a newer cryptocurrency, aimed to offer a more secure and sustainable platform for decentralized applications. Its peer-reviewed research and innovative consensus algorithm made it an intriguing investment option.

The Standout Cryptocurrency of 2017:

Among these contenders, one cryptocurrency emerged as the clear standout in 2017: Ethereum (ETH). Here's why:

1. Market Performance: Ethereum's price skyrocketed from around $8 in early 2017 to an all-time high of nearly $1,400 in December. This meteoric rise made it the best-performing cryptocurrency of the year.

2. Platform Innovation: Ethereum's platform allowed developers to create decentralized applications (DApps) and smart contracts. Its potential for innovation and adoption in various industries made it a sought-after investment.

3. Community Support: Ethereum had a strong and active community, which contributed to its growth and adoption. This community support played a crucial role in its success.

4. Partnerships: Ethereum formed partnerships with several major companies, including Microsoft, JPMorgan, and ConsenSys. These partnerships further solidified its position as a leading cryptocurrency.

5. Scalability: Ethereum addressed the scalability issue that Bitcoin faced, which allowed for faster and more cost-effective transactions. This scalability made it more attractive to investors.

Frequently Asked Questions:

1. Q: What is Ethereum's main advantage over Bitcoin?

A: Ethereum's main advantage over Bitcoin is its platform for decentralized applications and smart contracts. This allows for innovation in various industries, whereas Bitcoin is primarily a digital currency.

2. Q: How did Ethereum's price perform in 2017?

A: Ethereum's price skyrocketed from around $8 in early 2017 to an all-time high of nearly $1,400 in December, making it the best-performing cryptocurrency of the year.

3. Q: What is a smart contract, and how does it benefit Ethereum?

A: A smart contract is a self-executing contract with the terms of the agreement directly written into lines of code. It facilitates, automates, and enforces the performance of an agreement between parties. This feature allows for trustless transactions and innovation in various industries.

4. Q: How does Ethereum address the scalability issue that Bitcoin faces?

A: Ethereum addresses the scalability issue by implementing a proof-of-stake consensus algorithm, which allows for faster and more cost-effective transactions. This scalability makes it more attractive to investors and developers.

5. Q: Can Ethereum replace traditional financial systems?

A: While Ethereum has the potential to revolutionize the financial industry, it is unlikely to replace traditional financial systems entirely. However, it can complement and enhance these systems by providing a decentralized, transparent, and efficient platform for transactions and applications.

Conclusion:

In the bustling cryptocurrency market of 2017, Ethereum stood out as the best cryptocurrency to invest in. Its market performance, platform innovation, community support, partnerships, and scalability made it an attractive investment option. However, it's important to remember that investing in cryptocurrencies involves risks, and it's crucial to do thorough research before making any investment decisions.