YEREVAN (CoinChapter.com) — Bitcoin has long been the leader in the cryptocurrency market, but its limitations are becoming harder to ignore. With its Proof-of-Work (PoW) system, Bitcoin faces scalability issues, high energy consumption, and reliance on centralized mining pools. As its price continues to climb, concerns about it being overheated are prompting a closer look at alternatives like Algorand (ALGO).
Bitcoin’s Scalability and Energy Challenges
Bitcoin processes only seven transactions per second, leading to congestion and high transaction fees during peak usage. Its PoW system requires vast amounts of energy, raising environmental concerns. Additionally, mining is controlled by a small number of pools, reducing decentralization and making the network more vulnerable to control by a few entities. Forks, which create temporary splits in the blockchain, add further uncertainty.
Algorand’s Pure Proof-of-Stake: A Decentralized and Efficient Blockchain Solution
Algorand (ALGO) operates on Pure Proof-of-Stake (PPoS), a system designed to address the weaknesses of PoW. Instead of relying on energy-intensive mining, Algorand selects block validators randomly from all token holders. This ensures decentralization while eliminating the need for expensive equipment and reducing energy consumption.
Pure Proof-of-Stake Process Explained. Source: Algorand Web
Transactions on Algorand are finalized within seconds, providing immediate certainty without delays. Unlike Bitcoin, Algorand’s network avoids forks, ensuring consistent transaction records.
The network supports a wide range of use cases, including decentralized finance (DeFi), non-fungible tokens (NFTs), and cross-border payments.
Algorand (ALGO) Gains Momentum Amid Bitcoin Scalability Concerns
As more developers, businesses, and users adopt Algorand, its growing relevance in the blockchain landscape becomes clear. With its current price much lower than Bitcoin, it is gaining attention as a blockchain that addresses critical issues.
Recent technical analysis highlights Algorand’s potential for upward momentum. A chart shared by @ChartNerdTA indicates that $ALGO could reach $7.26, provided it clears a key resistance level at $0.75. The chart also notes a possible short-term pullback to $0.28 before a major upward move. These indicators suggest significant potential movements in the near future, with Algorand’s price trajectory gaining market attention.
Algorand Price Projection Chart. Source: @ChartNerdTA
Another analysis from @brandank_cr connects Algorand’s performance to broader market dynamics. It highlights that $ALGO, along with $XRP and $ADA, is benefiting from factors such as favorable tax policies for certain cryptocurrencies. This, combined with the network’s technological strengths, has amplified bullish sentiment around Algorand.
Bullish Sentiment on Algorand. Source: @brandank_cr
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