Obviously, individuals focus on mining the most profitable virtual currencies such as Bitcoin, but also Dash, Ethereum, Monero, Litecoin, etc.
However, it is very difficult today to make money by mining a cryptocurrency. It is often much more interesting to invest in virtual currency to hope to make gains.
Miner/developer: who makes the cryptocurrency?
The role of the cryptocurrency miner is therefore to validate the transactions carried out. He is thus paid in tokens of the cryptocurrency for which he has confirmed a new block.
The role of the developer is very different. A cryptocurrency developer will develop the computer protocol at the base of the cryptocurrency which defines in particular the number of tokens in circulation, their speed of circulation, their storage power, etc. It is a bit like the architect of the network.
Bitcoin, Ethereum: the main cryptocurrencies.
How many cryptocurrencies exist?
This often asked question seems simple but in reality, it is very difficult to know the exact number of virtual currencies. No site lists them all.
The Ministry of Economy and Finance counted more than 2,871 in 2019, without having made an update since. Today there are over 8,035 cryptocurrencies listed on coinmarketcap. But that’s not the most interesting thing.
It should be noted that there are very many crypto-currencies but that only a few dozen can be qualified as popular cryptocurrencies. We often tend to rank promising cryptocurrencies based on their market capitalization, and rightly so.
The Bitcoin cryptocurrency, created in 2008 by Satoshi Nakamoto (without knowing who he is, whether he is a man or a woman, or even a single person or several) is the first of the crypto-currencies. It is a bit like the digital gold standard of the crypto-currency sector, the reference in the field. The main cryptocurrency experienced a “fork” in August 2017. A disagreement in the Bitcoin community over the speed of transactions gave rise to a new currency: Bitcoin Cash, which then immediately rose to third position in the Top 10 cryptocurrencies and has remained so ever since. around the Top 10 virtual currencies without ever managing to compete with Bitcoin.
The other benchmark crypto currency is Ethereum, which also underwent a “fork” in the summer of 2016. Ethereum, more complete than Bitcoin, relies on all Blockchain applications since it can not only process transactions but also complex contracts and programs. Indeed, technically more advanced and more efficient than Bitcoin, Ethereum is both a decentralized exchange protocol that allows users to set up smart contracts as well as a cryptocurrency based on the Ethereum network, more commonly known as Ether. The assets of this cryptographic network have participated in the spectacular rise recorded by Ethereum since 2020. The second active crypto would see itself on the first step of the podium. Its market capitalization at the beginning of September 2021 is around 513.519 billion euros and over one year it has recorded an increase of nearly 693%, a rise much higher than that of Bitcoin over the same period (around 182%).
Bitcoin and Ether together account for almost 64% of the total cryptocurrency market capitalization. The dominance of Bitcoin reaches 46% and that of Ether 18%.