SELECTED CRYPTOCURRENCIES AND THEIR DEVELOPMENT PROSPECTS

Abstract

The aim of the study was to conduct a comprehensive comparison of selected popular cryptocurrencies, such as Bitcoin, Ethereum, XRP, Cardano, and Litecoin. The analysis was carried out in terms of technological categories, scalability, as well as security and privacy. In addition, the development prospects of selected cryptocurrencies were assessed.The research showed that despite its slow transaction speed and scalability issues, Bitcoin is the most widely accepted cryptocurrency as a form of payment, while XRP, which has the fastest transaction speed, is not as widely chosen and supported as a payment method. In terms of everyday applications, Ethereum is the best choice due to its ability to automate many business processes. Most cryptocurrencies are decentralized, which is the foundation of their existence and functioning. Bitcoin, Litecoin, and Cardano place considerable emphasis on this, while there is much debate about the actual decentralization of XRP due to their affiliation with Ripple Labs. An analysis of price stability and volatility has shown that a large proportion of cryptocurrencies are dependent on Bitcoin's market position, which gives an idea of how important it is as a resource. In terms of potential future applications, each of the cryptocurrencies studied can be used as a means of payment, but Bitcoin and Ethereum have the potential to find general use. In addition, they are seen by investors as the safest investment option due to the constant improvements and updates.Analysis in terms of selected factors, including technology, privacy, stability, and price volatility, allowed us to determine the relationship between these factors and the development prospects of the given cryptocurrencies. Bitcoin and Ethereum are the most popular currencies due to their price, and investors often treat them as long-term investments with high growth potential. XRP, Cardano, and Litecoin are less commonly used due to their high dependence on Bitcoin and low growth potential compared to other cryptocurrencies.