(Updated April 2023)
This was the first question I asked myself when I first started looking into the space in 2017. I thought I had missed the boat and I wanted to know what is the next coin that is going to go parabolic like Bitcoin had. Of course, no one can see the future, but after considerable time and research in the space, I think the uniqueness of the decentralized nature of bitcoin will keep it as the pre-eminent coin, and it will remain the internet gold (gold 2.0). I do think one of the newer generation coins will be the one that we all use on a daily basis. The Lightning Network, which is a Layer 2 (protocol/coin on top of Bitcoin, a Layer 1), is fast and so cheap that it is essentially free. Lightning is allowing people to use Bitcoin for small daily transactions. One word you will see as you learn about cryptocurrency is altcoin. This is an Alternative to Bitcoin. It is often derogatorily termed shitcoin by Bitcoiners. Bicycles and cars can both get you from point A to point B, but they have different utilities. Although many people believe so, I am not certain that there will be one coin to rule them all. I think there will be two or three major use coins, however. As I type, Bitcoin and Ethereum are the two largest coins, by far, with an $880B and $408B market cap respectively. Take care to DYOR (do your own research) and make sure the coin you want to buy has use!
At this point (September 2021), I am not convinced, but I think Cardano (ADA) may have a really good shot at supplanting Ethereum, which is ‘the network everyone is using.’ You may see people discussing "Ethereum killers". Ethereum is easily the most used blockchain globally right now because most of the 'coins' on CoinMarketCap.com are actually just tokens on the Ethereum network (ERC-20 tokens). Because these tokens are all clearing their transactions on Ethereum, it increases the demand on the Eth network. You will find a lot of tribalism in the crypto space and there are maximalists (maxis) that insist only their chosen token is the best. At this point, none of the second or third generation cryptocurrencies have reached their final form. Cardano is rolling out smart contracts in a few days (Sept 12, 2021) and has been very slow and methodical (many of their critics argue too slow). Ethereum went a bit more of the 'move fast and break things' route. To be sure, the idea and implementation of Eth was groundbreaking. Solana and PolkaDot are also racing to become the next major computer system. The difference between Bitcoin and these other smart contract tokens is like the bike and the car. Or maybe a better comparison is like gold and your phone. They do different things.
There may not be one blockchain to rule them all, but the ecosystem may be large enough to have different niches. I would liken this to the fact that not all computers run on the same operating system. MacOS, Windows, Linux/Unix, and Chrome are all used on various devices with different purposes, pricepoints, and abilities. Blockchains may be the same. The lack of bitcoin pre-mine, the pseudonymous inventor, the first mover, and the history of Bitcoin are all going to be very difficult, if not impossible, to beat with any future coin. To sum up, I think Bitcoin may be the next bitcoin. If you want to place some bets on smaller coins, by all means. You may see exponential gains that beat what bitcoin has done and is going to do. In my opinion, bitcoin is going to be a safer bet, at least for now.
Ethereum is currently the safer bet in the smart contract space. The difference between these is that the Ethereum blockchain will basically run programs (contracts) on the network. I think of this like an if/then statement. If you have placed 10 coins in this wallet, then the network will execute this protocol. Or transfer ownership of a contract/NFT/etc. This permanence and executability is going to continue to disrupt markets. For example, title searches on real property. There will be no need to pay someone or some service to ascertain the provenance of the item you are purchasing. There will be an immutable record on the blockchain.
Cardano, Solana, Polkadot, and some others that I don't even know about yet have an opportunity to poach transactions from Ethereum. All the 'Ethereum Killer' has to do is get a better product into the market before Ethereum in its current form morphs into Ethereum 2.0 (Eth 2.0). If that better product has an easy on-ramp to transition the token over to the new blockchain, I predict that there will be a rapid move of equity and transactions over to the better product. As of right now, I do not have a prediction on which one of these is going to achieve their best and final form first. I guarantee you that a bunch of smart and determined individuals are racing to accomplish this.
(This post was updated April 11, 2023 from its original September 9, 2021 for light clarification. As of this update, Ethereum has progressed to Proof of Stake, and should be unlocking staked tokens this week, it also dropped the 2.0 moniker. The ecosystem--and I personally--has experienced significant fraud in 2022. My conviction in Bitcoin has grown stronger due to the fraud, but I wanted this post to remain true to my feelings at the time.)
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