Important: this position should not be seen as investment advice. The author focuses on the best coins in terms of actual use and acceptance, not in terms of finance or investment.
In 2017, cryptographic markets are setting a new standard for simple profits. Almost every piece or chip yielded incredible profits. “Rising tide throws all boats,” as they say, and the end of 2017 was a flood. Rising prices have created a positive feedback cycle that is attracting more and more capital to Crypto. Unfortunately, but inevitably, this galloping market leads to massive investment. Money was thrown indiscriminately at all kinds of dubious projects, many of which would not bear fruit.
In the current bearish environment, hype and greed are being 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 main reasons to buy or keep a coin are again the main ones.
The main factors in the evaluation of cryptocurrency-
There are several factors that, at least in the long run, can beat hype and price pumps:
Although the cryptocurrency technology or ICO business plan may seem strange without users, but these are just dead projects. It is often forgotten that widespread recognition is an important feature of money. In fact, it is estimated that more than 90% of the value of bitcoin depends on the number of users.
While the adoption of Fiat is entrusted to the state, the adoption of cryptography is purely voluntary. Many factors are involved in accepting a coin, but perhaps the most important factor is the likelihood of the coin being accepted by others.
Decentralization is essential for the I push model of a true cryptocurrency. Without decentralization we have a slightly closer Ponzi scheme than a real cryptocurrency. The problem that cryptocurrency is trying to solve is trust in individuals and institutions.
If dismantling a coin or central controller can change the transaction record, it calls into question its basic security. The same goes for parts with unverified code that haven’t been thoroughly tested for years. The more you can expect the code to work as described, regardless of human influence, the greater the security of the coin.
Real coins seek to improve their technology, but not at the expense of security. True technological progress is rare, as it requires a lot of experience as well as wisdom. While there are always fresh ideas that you can wind up with when it makes weaknesses or criticisms of the original purpose of the coin, it misses the point.
Innovation can be a challenging factor to evaluate, especially for non-technical users. However, if the currency code has moaned or is not receiving updates regarding important issues, it may be a sign that the developers are weak about ideas and motives.
The economic incentives inherent in the currency are easier to understand for the average person. If the coin had a large pre-mining or ICO (offer of the initial part), the team had a significant share of chips, it is clear that the main motivation is profit. By acquiring what the team offers, you play your game and enrich it. Be sure to give tangible and reliable value in return.
5 cryptocurrencies to buy in 2018
There has never been a better time to reevaluate and balance a cryptographic portfolio. Based on their solid foundation, here are five pieces that I think should be followed or perhaps bought at their current depressing prices (which, just by warning, can go lower).
# 1. Bitcoin (due to its decentralization)
The first place belongs to Bitcoin (BTC), which remains the market leader in all categories. Bitcoin has the highest price, the broadest view, most of the security (due to the phenomenal energy consumption of bitcoin mining), the most well-known brand identity (forks sought to be relevant) and much of the development is active and rational. It is also the only part to date that is represented in traditional markets in the form of bitcoin futures trading on the American CME and CBOE.
Bitcoin remains the main engine; The performance of all other parts strongly correlates with the performance of bitcoin. My personal expectation is that the gap between bitcoins and most if not all other parts will widen.
Bitcoin has several promising innovations that will soon be installed as additional layers or soft forks. Examples are the Flash System (LN), the tree, the Mimblewimbleund Signature Cord and more.
In particular, we plan to open a new range of applications for bitcoin, as it allows large-scale, micro-transactions and instant and secure payments. LN is becoming more stable as users test their various capabilities with real bitcoins. As it becomes easier to use, it can be assumed that it can benefit greatly from taking bitcoin.
№2. Litecoin (because of its resilience)
Litecoin (LTC) is a clone of bitcoin with a different hash algorithm. Although Litecoin no longer has Bitcoin anonymity technology, strange reports have shown that the adoption of Litecoin in dark markets is now the second, only bitcoin. Although the currency I am much more suited to is the role of purchasing illegal goods and services, perhaps this is the result of the longevity of Litecoin: it was launched in late 2011.
Another factor in favor of Litecoin is that it integrates Bitcoin SegWit technology, which means that Litecoin is prepared for LN. Litecoin can benefit from the exchange of atomic chains. In other words, provide peer-to-peer currency trading without the involvement of third parties (i.e. exchanges). Because Litecoin keeps its code mostly synced with bitcoins, it is well placed to benefit from the technical advances of bitcoin.
№3. Ethereum (due to reasonable contracts)
At this point in Ethereum (ETH) there are a few major issues. First of all, governments run ICOs, and rightly so: many have turned out to be either fraudulent or bankrupt. Since most ico runs on the Ethereum network as an ERC 20 token, the ICO mania has brought a lot of benefits to Ethereum in recent years. If appropriate rules are made to protect investors, Ethereum project fraudsters can claim some legitimacy as a crowdfunding platform.
The second major problem facing Ethereum is the delay in the transition to the new hybrid system for detecting performance and battery life. Currently, the GPU for Ethereum mining is profitable, but Bitmain has just announced the ASIC minor Ethereum, which is likely to affect the bottom lines of GPU miners. It remains to be seen whether this will change prisoners of war and how successful this change will be.
If Ethereum can survive these two major challenges – regulation and mining – will demonstrate greater resilience. Otherwise, there are several competing currencies that track its shadows, such as Ethereum Classic (etc.), Cardano (ADA) and EOS.
# 4. Monero (because of his anonymity)
While its adoption in the dark markets is not all that could be expected, I (XMR) remains the prime minister’s private life. Its reputation and market capitalization still exceed the reputation of its rivals – and for good reason.
The Monero code requires less confidence that Zcash is “loyal” to the key ceremony, and had a fair start, unlike Dash. The fact that Monero recently changed its Pow to defeat the development of a small ASIC for its algorithm confirms the commitment of part of the decentralization of mining. The significant drop in hashing speed is due to the new version, which is constantly reported on ASIC. It could also be an opportunity for the GPU and even minor processors to come back to me. The new version of Monero, 0.12, also includes other improvements that show that Monero continues to evolve in a sensitive direction.
№5. iPRONTO (decentralized incubation platform)
iPRONTO is an Ethereum incubation network dedicated to investors looking for a safe and reliable platform for investing in new ideas and future innovators who can present their ideas and get opinions from users, experts in the field on the practice and implementation of the ideas.
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 is signed to the Committee for consideration and registration on the platform. The idea will not be published for all users on the public platform of the network, but only for selected members of the target community who are willing to sign a smart contract to maintain the confidentiality of the idea.