Is Bitcoin about to be replaced?

When I wrote my last article about Bitcoin it was sitting at US$13,807 and the price right now is US$13,502. A drop of around 2.5% isn’t much to write home about, but it is on top of more losses from the high of US$19,500 a few weeks ago.

The price has actually risen from New Year’s Day, when the price was almost US$13,000. However, it’s the slow-and-steady decline back towards $10,000 that could see many retail investors rush for the exits. Why hold a speculation tool if it’s losing money?

The Bitcoin decline could be due to cryptocurrency investors moving onto potentially better things. Bitcoin cash, Ethereum, Litecoin and some others offer potentially better futures than Bitcoin.

However, there’s one cryptocurrency that’s blowing away all the others in terms of growth. Ripple is one currency I mentioned in my previous article. On Friday Ripple rose by around 50%. Since 1 December 2017 the Ripple price has risen by 669%. Since 1 January 2017 the price has risen by over 30,000%.

Share market investors will be aware of the term ‘market capitalisation’, which is the number of shares multiplied by the share price. A cryptocurrency market capitalisation works in the same way, it’s the currency price multiplied by the number of coins.

The cryptocurrency market cap is seen as important because it gives the currency more legitimacy the bigger it gets. Bitcoin is the clear market cap leader, whilst Ethereum has always been the second biggest.

However, Ripple has grown to be the second biggest with a market cap of around $100 billion.

Ripple’s technology may be a bit better than Bitcoin, but the excitement surrounding Ripple could be because digital currency exchange Coinbase may soon list Ripple (XRP) as an option.

The rise (and fall) of cryptocurrencies is truly fascinating and I’m sure in the future there will be many economic classes in schools, colleges and universities that analyse this period. Whether the story ends with a dramatic crash of ‘worthless’ currencies or begins a new era of globally-accepted currencies remains to be seen.

Either way, cryptocurrency trading isn’t for me. A good tech stock like Altium Limited (ASX: ALU) is my preferred way of getting exciting growth.

I’d rather create long-term wealth for my family with quality growth shares like these rather than cryptocurrencies.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia owns shares of Altium. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.