Important: This position should not be considered as investment advice. The author focuses on the best currencies in terms of actual use and adoption, not from a financial or investment perspective.
In 2017, the crypto markets set the new standard for simple earnings. Almost all the pieces or chips performed amazingly. “A high tide throws out all the ships,” as they say, and the end of 2017 was a deluge. The price increase has created a positive feedback loop, attracting more and more capital to Crypto. Unfortunately, but inevitably, this runaway market is leading to massive investment. Money has been indiscriminately invested in all kinds of dubious projects, many of which will not pay off.
In the current bearish environment, hype and greed are replaced by critical appraisal and prudence. Especially for those who have lost money, marketing promises, endless shillings, and charismatic oratorios are no longer enough. Well, the basic reasons for buying or holding a coin are paramount once again.
Fundamental factors in evaluating a cryptocurrency
There are a few factors that tend to conquer the advertising and pricing hype, at least in the long run:
Although the technology of a cryptocurrency or an ICO business plan may seem surprising without users, they are just dead projects. It is often forgotten that general acceptance is an essential characteristic of money. In fact, it is estimated that more than 90% of the value of Bitcoin is a function of the number of users.
While the state entrusts the acceptance of Fiat, the acceptance of crypto is purely voluntary. Many factors go into the decision to accept a coin, but perhaps the most important consideration is the likelihood that others will accept the coin.
Decentralization is essential to the I push model of a true cryptocurrency. Without decentralization, we are a little closer to a Ponzi scheme than a real cryptocurrency. Trust in individuals or institutions is the problem that a cryptocurrency tries to solve.
If the dismantling of a coin or a central controller can change the record of the transaction, you are questioning its basic security. The same applies to untested code parts that have not been thoroughly tested over the years. The more you can count on the code to work as described, regardless of human influence, the greater the safety of a coin.
Valid coins live to improve their technology, but not at the expense of security. Real technological progress is rare because it requires a lot of experience and also wisdom. Although there are always fresh ideas that can be screwed in, if doing so puts vulnerabilities or critics of the original purpose of a coin, it is not the case.
Innovation can be a difficult factor to assess, especially for non-technical users. However, if a currency code is stuck or not receiving updates that address important topics, it can be a sign that developers are weak on ideas or motivations.
The economic incentives inherent in a coin are easier for the average person to grasp. If a coin had a large pre-mine or an ICO (Initial Part Offering), the team had a significant chunk of tokens, then it is quite obvious that the main motivation is profit. By buying what the equipment offers, you play your game and enrich it. Make sure you provide tangible and reliable value in return.
5 cryptocurrencies to buy in 2018
There has never been a better time to reevaluate and balance a crypto portfolio. Based on its solid foundation, here are five pieces that I think are worth following or perhaps buying at their current depressing prices (which, just a warning, could go down).
# 1. Bitcoin (due to its decentralization)
Number one belongs to Bitcoin (BTC), which remains the market leader in all categories. Bitcoin has the highest price, the broadest assumption, most of the security (due to the phenomenal power consumption of Bitcoin mining), the most famous brand identity (the forks have tried to be appropriate), and most of it Active and rational development. It is also the only piece to date that is represented on the traditional markets in the form of Bitcoin futures trading on the US CME and CBOE.
Bitcoin is still the main engine; The performance of all other parts is highly correlated with the performance of Bitcoin. My personal expectation is that the gap between Bitcoin and most, if not all, the other parts will widen.
Bitcoin has several promising innovations in the works that will soon be installed as additional layers or soft forks. Examples are the Flash (LN) system, the tree, Schnorr signatures, Mimblewimbleund, and much more.
In particular, we plan to open a new range of applications for Bitcoin, as it enables large-scale microtransactions and instant and secure payments. LN is becoming more and more stable as users test its different possibilities with real Bitcoin. As it becomes easier to use, it can be assumed that you will benefit greatly from the adoption of Bitcoin.
# 2. Litecoin (for its persistence)
Litecoin (LTC) is a Bitcoin clone with a different hashing algorithm. Although Litecoin no longer has the anonymity technology of Bitcoin, surprising reports have shown that the adoption of Litecoin in the dark markets is now the second, the only bitcoin. While it is a currency that I have much more appropriate for the role of acquiring illegal goods and services, perhaps this comes as a result of the longevity of Litecoin – it was launched in late 2011.
Another factor in Litecoin’s favor is that it integrates Bitcoin SegWit technology, which means that Litecoin is LN ready. Litecoin can benefit from an atomic chain exchange. In other words, secure peer-to-peer currency trading without third party involvement (i.e. exchange). Since Litecoin keeps its code largely in sync with Bitcoin, it is well positioned to benefit from Bitcoin’s technical progress.
# 3. Ethereum (due to smart contracts)
Ethereum (ETH) has some major problems right now. First, governments are targeting ICOs, and for good reason: many have turned out to be fraudulent or bankrupt. Since most ico’s run on the Ethereum network as an ERC 20 token, the ICO mania has brought a lot of value to Ethereum in recent years. If the right rules are put in place to protect investors, Ethereum project scams can claim some legitimacy as a crowdfunding platform.
The second big issue Ethereum faces is the delay in transitioning to a new hybrid battery and work detection system. Ethereum mining GPU is currently profitable, but Bitmain just announced Ethereum ASIC minor, which will likely have an impact on the bottom lines of GPU miners. It remains to be seen if this will change the prisoner of war and how successful this change will be.
If Ethereum can survive these two big problems, regulation and mining, it will have shown great resilience. Otherwise, there are several competing coins that follow its shadows, such as Ethereum Classic (etc.), Cardano (ADA), and EOS.
# 4. Monero (for his anonymity)
Although its adoption in the dark markets is not all that could be expected, I (XMR) is still the privacy of the Prime Minister. Its reputation and market capitalization are still above those of its rivals, and for good reason.
The Monero code requires less trust than Zcash’s “loyal” key ceremony, and it got off to a fair start, unlike Dash. That Monero recently changed its Pow to defeat the development of a small ASIC for its algorithm confirms the commitment of the mining decentralization piece. A significant drop in the hash rate is due to the new version, which is constantly being reported against ASICs. This could also be an opportunity for the GPU and even minor CPUs to communicate with me. The new version of Monero, 0.12, also includes other improvements that show that Monero continues to grow in sensitive lines.
# 5. iPRONTO (a decentralized incubation platform)
iPRONTO is an incubation platform of the Ethereum chain dedicated to investors looking for a safe and reliable platform to invest in new ideas and future innovators who can present their ideas and receive opinions from users, experts in the field on the practice and implementation of ideas derived.
The ideas of the innovators are supported as the NES in Smart Contract format will be signed between the expert platform and the client if the client’s business idea to the Committee for examination and registration on the platform. The idea will not be published to all users on the chain’s public platform, but only to selected members of the target community who are willing to sign the Smart contract to keep the idea confidential.