What cryptocurrencies is good to invest in?

This year, the value of bitcoin has risen even after an ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising, which brings cryptocurrencies worth more than one hundred billion. On the other hand, the long-term prospects for cryptocurrency are somewhat blurred. There are quarrels about the lack of progress among the main developers, which make it less attractive as a long-term investment and as a payment system.

Bitcoin

Still the most popular, bitcoin is the cryptocurrency that launches all this. It currently has the largest market capitalization of about $ 41 billion and has existed for the past eight years. Bitcoin is widely used around the world and so far it is not easy to exploit the weakness in the method it works. Both as a payment system and as a stored value, Bitcoin allows users to easily receive and send bitcoins. The blockchain concept is the foundation on which Bitcoin is based. It is necessary to understand the concept of a blockchain in order to understand what cryptocurrencies are.

Simply put, a blockchain is a database distribution that stores each network transaction as a block of data called a “block.” Each user has copies of the blockchain, so when Alice sends 1 bitcoin to Mark, everyone on the network knows.

Litecoin

An alternative to Bitcoin, Litecoin tries to solve many of the problems that hold Bitcoin. It is not as durable as Ethereum, whose value stems mostly from the acceptance of solid users. It is worth noting that Charlie Lee, a former Google employee, runs Litecoin. He also practices transparency with what he does with Litecoin and is quite active on Twitter.

Litecoin was Bitcoin’s second fiddle for a while, but things started to change in early 2017. First, Litecoin was adopted by Coinbase along with Ethereum and Bitcoin. Litecoin then corrected the Bitcoin problem by adopting Segregated Witness technology. This allowed him to reduce transaction fees and do more. The deciding factor, however, was when Charlie Lee decided to focus solely on Litecoin and even left Coinbase, where he was the engineering director, for Litecoin only. As a result, the price of Litecoin has risen in the last few months, with the strongest factor being the fact that it could be a real alternative to Bitcoin.

Ethereum

Vitalik Buterin, the programmer of the superstar, invented Ethereum, which can do everything that bitcoin can. However, its purpose is primarily to be a platform for building decentralized applications. Block chains are where the differences between the two are. In principle, the Bitcoin blockchain records a type of contract that specifies whether funds have been moved from one digital address to another. However, there is a significant extension with Ethereum, as it has a more advanced language script and has a more complex and wider range of applications.

Projects began to sprout at the top of Ethereum when developers began to notice its better qualities. Through symbolic crowd sales, some have even raised millions of dollars, and this is still a continuing trend to this day. The fact that you can create wonderful things on the Ethereum platform makes it almost like the Internet itself. This caused a price jump, so if you bought Ethereum for $ 100 earlier this year, it won’t be valued at nearly $ 3,000.

Monero

Monero aims to solve the problem of anonymous transactions. Even if this currency is perceived as a method of money laundering, Monero seeks to change that. In general, the difference between Monero and Bitcoin is that Bitcoin has a transparent blockchain with every public and recorded transaction. With bitcoin, everyone can see how and where the money was transferred. However, there is some somewhat imperfect anonymity in bitcoins. In contrast, Monero has an opaque rather than transparent transaction method. No one sells by this method, but since some people love privacy for any purpose, Monero is here to stay.

Zcash

Unlike Monero, Zcash also seeks to solve the problems that Bitcoin has. The difference is that instead of being completely transparent, Monero is only partially public in its blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, not everyone likes to show how much money they actually spent on Star Wars souvenirs. Thus, the conclusion is that this type of cryptocurrency really has an audience and demand, although it is difficult to determine which cryptocurrency that focuses on confidentiality will eventually come out on top of the pile.

Banker

Also known as the “smart token”, Bancor is a new generation standard for cryptocurrencies that can hold more than one token in reserve. In general, Bancor seeks to facilitate the trading, management and creation of tokens by increasing the level of liquidity and allowing them to have an automated market price. Bancor currently has a product up front that includes a wallet and the creation of a smart token. The community also has features such as statistics, profiles and discussions. In short, the Bancor protocol allows the discovery of a built-in price as well as a liquidity mechanism for smart contract tokens through an innovative reserve mechanism. With a smart contract, you can immediately liquidate or purchase any of the symbols in the Bancor reserve. With Bancor you can easily create new cryptocurrencies. Now who wouldn’t want that?

EOS

Another competitor to Ethereum, EOS promises to solve the problem of scaling Ethereum by providing a set of tools that are more stable for launching and building applications on the platform.

Thesis

An alternative to Ethereum, Tezos can be upgraded by consensus without too much effort. This new blockchain is decentralized in the sense that it is self-governing by creating a true digital community. It facilitates a mathematical technique called formal verification and has features to increase the security of the most financially weighted, sensitive smart contract. Definitely a great investment in the coming months.

Sentence

It is incredibly difficult to predict which bitcoin on the list will become the next superstar. However, consumer acceptance has always been one of the key success factors when it comes to cryptocurrencies. Both Ethereum and Bitcoin have this, and even if there is a lot of support from the early adopters of each cryptocurrency on the list, some have yet to prove their continued strength. However, they are the ones you need to invest in and be careful about in the coming months.

Volatility of cryptocurrencies, winning train

This year we can see that cryptocurrencies tend to move up and down even by 15% of the value daily. Such price changes are known as volatility. But what if … this is perfectly normal and sudden changes are one of the characteristics of cryptocurrencies that allow you to make good profits?

First of all, cryptocurrencies have reached the mainstream only recently, which is why all the news about them and the rumors are “hot”. After each statement of government officials for possible regulation or ban on the cryptocurrency market, we see a huge movement in prices.

Second, the nature of cryptocurrencies is more like a “stock of value” (as gold was in the past) – many investors see them as a backup option for investing in stocks, physical assets such as gold and fiat (traditional) currencies. The transfer rate also affects the instability of the cryptocurrency. The fastest transfer takes only a few seconds (up to a minute), making them an excellent asset for short-term trading if there is currently no good trend for other types of assets.

What everyone should keep in mind – this speed also applies to trends in the life of cryptocurrencies. While in regular markets the trends can last for months or even years – here it happens within even days or hours.

This brings us to the next point – although we are talking about a market worth hundreds of billions of dollars, it is still very small compared to the daily volume of trade compared to the traditional foreign exchange market or stocks. Therefore, an investor who makes 100 million transactions in the stock market will not lead to a huge change in price, but on the scale of the cryptocurrency market, this is a significant and noticeable transaction.

Because cryptocurrencies are digital assets, they are subject to technical and software updates to cryptocurrency features or expanded blockchain collaboration, making it more attractive to potential investors (with SegWit activation basically doubling the value of bitcoin).

These elements in combination are the reasons why we observe such huge changes in the prices of cryptocurrencies within a few hours, days, weeks, etc.

But the answer to the question in the first paragraph – one of the classic rules of trading is to buy cheap, to sell high – hence the presence of short but strong trends every day (instead of weaker ones that last weeks or months as in stocks) , gives a much better chance to make a decent profit if used properly.

Is bitcoin being collected? Active trading for those who bet on Tether

The inflow of institutional funds is deferred in all accounts, and the purchase of bitcoins is currently only an inflow of USDT tokens.

The days when energetic shoppers maximized their billing cards to buy bitcoin may be over. In fact, even Korean markets have cooled. Anyway, the exchange of income – this time spared by the resource Tether (USDT). At first glance, the value levels of Bitcoin are abundant – at $ 6,743.53. As altcoins slide, Bitcoin maintains its position and its value expands again to 43.2% of the total market capitalization for all coins and tokens.

In any case, the goal can be liquidity, full of symbols. USDT printing has been harmonized with the rapid move in bitcoin starting in mid-2017. However, from now on, any infusion of USDT further provokes excited purchases by all other possible means. Currently, newcomers are either looking for sidelines, or most have lost the expectation that there are even faster additions to be made in crypto. However, for engaged brokers, the use of USDT is another source of income.

Despite the fact that more than 2.7 billion USDT have been made, not all of them have found their way to exchange BTC. Recently, USDT’s offer on the BTC stock exchanges was close to below 20%, with solid levels in Japanese yen, US dollars, Korean earnings and several different monetary standards. Anyway, now the photo changed quickly and was completed within a few days.

According to information from CryptoCompare, over 54% of all BTC exchanges are transactions with Tether, due to the huge Bitfinex exchange offer. At present, it seems that crypto markets have moved to a stage where all transactions are inward, and over the next few years, costs can only move in light of the activities of crypto insiders, not institutional brokers from the regular fund universe.

Half a month ago, Tether entered a bunch of altcoins – and now, it seems, receivables are being diverted to bitcoin. While this can be cost-effective, no matter how you look at it, it further suggests that for new bitcoin buyers, offering back to Fiat’s wealth is actually worrying, and they may end up with USDT tokens – which you can, in principle, be returned for money, but the procedure is moderate and there is a penalty of value.

Meanwhile, the crypto resource TrueUSD (TUSD) saw its contract for the supply of 88 million to 81 million tokens, as if the tokens had been baked and transformed into money. For TUSD, invert trading should be simpler – however, this also implies an outflow of assets from the digital market.

The basics of cryptocurrency and the way it works

In the times we live in, technology has made incredible progress compared to any time in the past. This evolution has redefined human life in almost every aspect. In fact, this evolution is a continuous process, and thus human life on earth is constantly improving day by day. One of the latest inclusions in this aspect is cryptocurrencies.

Cryptocurrency is nothing but a digital currency that is designed to require security and anonymity in online money transactions. It uses cryptographic encryption to generate currency and verify transactions. New coins are created through a process called mining, while transactions are recorded in a public ledger called a chain of transaction blocks.

A little step back

The evolution of cryptocurrency is mainly attributed to the virtual world of the network and involves the procedure of transforming readable information into code that is almost impossible. This makes it easier to track purchases and transfers involving currency. Cryptography, since its introduction during World War II to provide communication, has evolved in this digital age, mingling with mathematical theories and computer science. Thus, it is now used to provide not only communication and information, but also money transfers via the virtual network.

How to use cryptocurrency

It is very easy for ordinary people to take advantage of this digital currency. Just follow the steps below:

  • You need a digital wallet (obviously to store the currency)
  • Use the wallet to create unique public addresses (this allows you to receive the currency)
  • Use public addresses to transfer funds to or from the wallet

Cryptocurrency portfolios

A cryptocurrency wallet is nothing but a software program that is able to store both private and public keys. In addition, it can also interact with various blockchains so that users can send and receive digital currency and also monitor their balance.

The way digital wallets work

Unlike conventional wallets, which we carry in our pockets, digital wallets do not store currency. In fact, the concept of a blockchain is so cleverly mixed with cryptocurrency that currencies are never stored in a particular place. Nor do they exist anywhere in hard money or in physical form. Only records of your transactions are stored in the blockchain and nothing else.

A real life example

Suppose a friend sends you some digital currency, say in the form of bitcoin. What this friend is doing is transferring ownership of the coins to your wallet address. Now, when you want to use this money, you unlock the fund.

To unlock the fund, you must match the private key in your wallet with the public address to which the coins are assigned. Only when these private and public addresses match will your account be credited and your wallet balance swell. At the same time, the balance of the sender of the digital currency will decrease. In digital currency transactions, the actual exchange of physical coins never takes place.

Understanding the address of the cryptocurrency

By nature, this is a public address with a unique string of characters. This allows a user or digital wallet owner to receive cryptocurrency from others. Each public address that is generated has a corresponding personal address. This automatic match proves or establishes ownership of a public address. As a more practical analogy, you can consider a public cryptocurrency address as your email address to which others can send emails. Emails are the currency that people send you.

Understanding the latest version of the technology in the form of cryptocurrency is not difficult. One needs a little interest and spends time online to understand the basics.

How does a cryptocurrency gain value?

Cryptocurrencies are the newest “big thing” in the digital world and are now recognized as part of the monetary system. In fact, enthusiasts describe it as a “money revolution.”

In clear terms, cryptocurrencies are decentralized digital assets that can be exchanged between users without the need for a central authority, most of which are created through special calculation techniques called ‘mining’.

The acceptance of currencies such as the US dollar, the UK and the euro as legal tender is because they are issued by a central bank; however, digital currencies, such as cryptocurrencies, do not rely on public trust and confidence in the issuer. As such, several factors determine its value.

Factors that determine the value of cryptocurrencies

Principles of a free market economy (main supply and demand)

Demand and supply is a major determinant of the value of something valuable, including cryptocurrencies. This is because if more people are willing to buy a cryptocurrency and others are willing to sell, the price of that particular cryptocurrency will increase and vice versa.

Mass adoption

The mass acceptance of any cryptocurrency can skyrocket its price. This is due to the fact that the supply of many cryptocurrencies is limited to a certain limit and, according to economic principles, an increase in demand without a corresponding increase in supply will lead to an increase in the price of a particular commodity.

Many cryptocurrencies have invested more resources to ensure their widespread adoption, with some focusing on the applicability of their cryptocurrency to pressing privacy issues as well as key everyday cases, with the intention of making them indispensable in everyday life.

Fiat inflation

If a currency, such as the USD or GBP, inflates, its price rises and its purchasing power falls. This will lead to an increase in cryptocurrencies (let’s use Bitcoin as an example) for this fiat. The result is that you will be able to acquire more of this fiat with each bitcoin. In fact, this situation is one of the main reasons for the increase in Bitcoin prices.

History of fraud and cyber attacks

Fraud and hacks are also major factors influencing the value of cryptocurrencies, as they are known to cause wild fluctuations in valuations. In some cases, the cryptocurrency support team may be fraudsters; they will pump up the price of the cryptocurrency to attract unsuspecting individuals, and when hard-earned money is won, the price is cut by fraudsters who then disappear without a trace.

That is why it is imperative to beware of cryptocurrency fraud before investing your money.

Some other factors to keep in mind that affect the value of cryptocurrencies include:

  • How cryptocurrency is stored, as well as its usefulness, security, ease of acquisition and cross-border acceptability

  • Community strength supporting the cryptocurrency (this includes funding, innovation and loyalty of its members)

  • Low-risk cryptocurrency risks perceived by investors and consumers

  • News mood

  • Market liquidity and cryptocurrency instability

  • Government regulations (this includes the ban on cryptocurrency and ICO in China and its acceptance as legal tender in Japan)

Things that look positive for cryptocurrencies

Although there were market adjustments in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There were many activities in the market that changed the tide for the better. With proper analysis and the right dose of optimism, anyone who is invested in the crypto market can earn millions from it. The cryptocurrency market is here to stay in the long run. Here in this article, we give you five positive factors that can stimulate further innovation and market value in cryptocurrencies.

1. Innovation in scaling

Bitcoin is the first cryptocurrency on the market. It has the maximum number of users and the highest value. It dominates the entire value chain of the cryptocurrency system. However, it is not without problems. Its main narrow is that it can process only six to seven transactions per second. By comparison, credit card transactions average several thousand per second. Obviously, there is room for improvement in transaction scaling. With the help of peer-to-peer transaction networks on top of blockchain technology, it is possible to increase the volume of transactions per second.

2. Legitimate ICOs

Although there are cryptocurrencies on the market with a stable value, newer coins are being created that are designed to serve a specific purpose. Coins like IOTA aim to help the Internet of Things market by exchanging currencies. Some coins solve the problem of cybersecurity by providing encrypted digital repositories for storing money.

The new ICOs offer innovative solutions that disrupt the existing market and add new value to transactions. They also gain market credibility with their easy-to-use exchanges and reliable backend operations. They innovate both technologically in terms of the use of specialized mining hardware and on the part of the financial market, providing more freedom and opportunities to investors in the stock market.

3. Clarity regarding regulation

In the current scenario, most governments study the impact of cryptocurrencies on society and how its benefits can be reaped for the community as a whole. We can expect that there may be reasonable conclusions based on the results of the research.

Few governments are already embarking on the path of legalizing and regulating crypto markets, like any other market. This will prevent ignorant retail investors from losing money and protect them from harm. Regulations are expected to appear in 2018 to accelerate the growth of cryptocurrencies. This will potentially pave the way for widespread use in the future

4. Increase the application

There is a huge enthusiasm for the application of blockchain technology in almost every industry. Some start-ups offer innovative solutions such as digital wallets, cryptocurrency debit cards and more.

The reputation of crypto assets as a transaction environment will be strengthened as more people trust this system. Although some start-ups may not survive, they will make a positive contribution to the overall health of the market by creating competition and innovation.

5. Investments from financial institutions

Many international banks are watching the cryptocurrency scene. This can lead to the entry of institutional investors into the market. The inflow of significant institutional investment will fuel the next phase of cryptomarket growth. It has captured the imagination of many banks and financial institutions.

As surprises and bottlenecks around cryptocurrencies diminish, there will be more absorption from traditional investors. This will lead to the great dynamism and liquidity needed for growing financial markets. The cryptocurrency will become the de facto currency for transactions around the world.

Are you planning to create your own cryptocurrency exchange platform?

If we look at the most influential developments in recent times, the first thing that comes to mind is without a doubt cryptocurrency. People have made huge profits by investing in cryptocurrencies such as bitcoin and others at the right time. Many people have also managed to flourish by simply providing a cryptocurrency exchange platform to investors to trade cryptocurrencies.

Setting up an exchange is pretty easy. but you need to know a few basic things before you start your own exchange.

Let’s look at them –

Do you mean the target audience?

One of the most important things to keep in mind before creating a business platform is to understand the target audience. The same case is here.

When planning to create a bitcoin exchange platform, the first thing you need to analyze and understand is the audience you will be targeting.

For example, in the case of bitcoins, you can target both local and global audiences. So, you need to find out who your target audience is and then plan the development process. Why is this important? Well, you will get acquainted with it in the following sections.

Do you understand the legal terms?

The second thing to keep in mind are the legal conditions you will have to comply with.

There is a lot of noise about the legal aspects of cryptocurrency, but you may be surprised to know that there are 96 countries where bitcoin transactions are still unlimited.

So, setting up a cryptocurrency exchange platform while targeting these countries may be the best idea.

Remember to always look in depth at the legal guidelines in force in the area from which you plan to implement.

Do you have a partner bank?

Another thing to remember here is that you will need a partner bank. The simple reason for this is that you will be dealing with financial transactions.

To ensure that financial transactions run smoothly and smoothly, you need to make sure you have the right support in the form of a partner bank.

Therefore, you should contact several banking institutions to see if they can help you and understand their terms.

Do you have the right partner to develop the platform?

The most important step in the process is to find the right professional to help you develop a secure platform. Why did we specifically mention the term for sure, because the huge popularity of cryptocurrency made these exchanges the first target for hackers.

To make sure that your reputation is not damaged by something unwanted, you need to focus on creating a secure platform. You can easily achieve this by hiring an experienced developer who knows all the intricacies of the industry.

For example, they can test the platform by mimicking a malware attack and see how your cryptocurrency exchange platform opposes it.

Conclusion

This last point summarizes the basic things to keep in mind when planning to create a cryptocurrency exchange platform for yourself. Once you get the answers to these questions, you can easily continue and continue developing and earn some profits.

But don’t forget to take all the necessary legal, compliance and security measures if you want to be in this game for a long time.

So, are you ready?

How to make your own cryptocurrency in 4 easy steps

Okay, so cryptocurrency this, bitcoin that!

There is so much noise around the boom created by virtual currencies that the internet is overloaded with information on how you can make more money by investing in those currencies. But have you ever wondered how great it would be if you could create your own cryptocurrency?

I never thought about that, did I? It’s time to think, because in this post we will provide you with a four-step guide to creating your own cryptocurrency. Read the post and then see if you can do it for yourself or not!

Step 1 – Community

No, you don’t have to build a community like you when you plan to run social media. Here the game is a little different. You need to find a community of people who you think would buy your currency.

Once you identify a community, it becomes easier to take care of its needs, and therefore you can work to build a stable cryptocurrency instead of doing what you want to achieve.

Remember that you are not here to be part of the spectator sport – you are in it to win it. And having a community of people who would like to invest in your currency is the best way to do it!

Step 2 – Code

The second important step is coding. You don’t have to be a master coder to create your own cryptocurrency. There are many open source codes that you can use.

You can even go ahead and hire professionals to do the job for you. But when coding, remember one thing – explicit copying won’t get you anywhere.

You need to bring some uniqueness to your currency to distinguish it from existing ones. It must be innovative enough to create waves in the market. This is why copying the code alone is not enough to be on top of the cryptocurrency game.

Step 3 – Miners

The third and most important step in the process is to take on board some miners who will actually dig up your cryptocurrency.

This means that you need to have a certain set of people connected to you who can actually spread the word about your currency in the market. You need to have people to raise awareness about your currency.

This will give you an advantage. And as the saying goes – what is well started is half done; miners can ultimately lay the groundwork for a successful journey for your cryptocurrency in ever-increasing competition.

Step 4 – Marketing

The last thing you need to do as part of the work here is to contact merchants who will eventually trade the virtual coins you have built.

In simpler words, you should drop these coins on the battlefield where real people would be interested in investing in them. And this is by no means an easy feat.

You need to gain their trust by telling them that you have something worth offering.

How can you get started with it? Initially, the best way to place your coins is to identify the target audience that knows what a cryptocurrency is.

After all, there’s no point in trying to sell your stuff to people who don’t even know what a cryptocurrency is.

Conclusion

So, you can see that building a successful cryptocurrency is more about being aware of market trends and less about being a hardcore technician or a cutting-edge programmer.

If you have this consciousness in you, it’s time to flourish while the sun shines in the niche of cryptocurrency. Continue and plan to build your own cryptocurrency by following these simple steps and see how it works for you!

The "Experts" Wrong cryptos are obtained

Bitcoin peaked about a month ago, on December 17, at a maximum of nearly $ 20,000. As I write, the cryptocurrency is below $ 11,000 … a loss of about 45%. That’s more than $ 150 billion in lost market capitalization.

Include a lot of twisting of hands and gnashing of teeth in the crypto-commentator. It’s neck and neck, but I think the “I told you” crowd has an advantage over the “excuses.”

Here’s the thing: Unless you’ve just lost your bitcoin shirt, it doesn’t matter at all. And chances are, the “experts” you can see in the press don’t tell you why.

In fact, the collapse of bitcoin is wonderful … because it means we can all just stop thinking about cryptocurrencies at all.

The death of bitcoin …

In about a year, people will not be talking about bitcoins in the queue at the grocery store or on the bus, as they are now. That’s why.

Bitcoin is a product of justified disappointment. Its designer explicitly stated that the cryptocurrency is a reaction to the state’s abuse of fiat currencies such as the dollar or the euro. It had to provide an independent peer-to-peer system based on virtual currency, which could not be debated because there were a limited number of them.

This dream has long been rejected in favor of harsh speculation. Ironically, most people are interested in bitcoin because it seems like an easy way to get more fiat currency! They don’t own it because they want to buy pizza or gasoline with it.

As well as being a terrible way to transaction electronically – it’s painfully slow – the success of bitcoin as a speculative game has made it useless as a currency. Why would anyone spend it if it evaluates so quickly? Who would accept one when it is rapidly depreciating?

Bitcoin is also a major source of pollution. It takes 351 kilowatt hours of electricity just to process a transaction – which also releases 172 kilograms of carbon dioxide into the atmosphere. That’s enough to power an American household for a year. The energy consumed by all bitcoin mines so far can power nearly 4 million US households in a year.

Paradoxically, the success of bitcoin as old-fashioned speculative game – unintended libertarian uses – has attracted government measures.

China, South Korea, Germany, Switzerland and France have introduced or are considering bans or restrictions on bitcoin trading. Several intergovernmental organizations have called for concerted action to contain the apparent bubble. The US Securities and Exchange Commission, which once seemed to approve bitcoin-based financial derivatives, now seems hesitant.

And according to Investing.com: “The European Union is applying stricter rules to prevent money laundering and terrorist financing on virtual currency platforms. It is also addressing restrictions on cryptocurrency trading.”

We may one day see a functional, widely accepted cryptocurrency, but it will not be bitcoin.

… But a boost for crypto assets

Okay. Overcoming bitcoin allows us to see where the real value of crypto assets lies. This is how.

To use the New York subway system, you need tokens. You can’t use them to buy anything else … even though you do could sell them to someone who wanted to use the subway more than you.

In fact, if subway tokens were in limited supply, a bustling market could arise for them. They may even trade for much more than they originally cost. It all depends on how many people want to use the subway.

In short, this is the scenario for the most promising “cryptocurrencies” other than bitcoin. They are not money, they are tokens – “crypto-tokens”, if you will. They are not used as a common currency. They are only good within the platform for which they are designed.

If these platforms provide valuable services, people will want these crypto tokens and this will determine their price. In other words, crypto tokens will have value to the extent that people appreciate the things you can get for them from the platform associated with them.

That will make them real assets, s intrinsic value – because they can be used to get something that people value. This means that you can reliably expect a stream of revenue or services from owning such crypto tokens. It is critical that you can measure this flow of future returns relative to the price of the crypto token, just as we do when calculating the price / earnings ratio (P / E) per share.

Bitcoin, in contrast, has no inherent value. It has only a price – the price determined by supply and demand. It can’t generate future revenue streams and you can’t measure something like a P / E ratio for it.

One day it will be useless because it brings you nothing real.

Ether and other crypto assets are the future

The crypto-marker ether is safe It seems as a currency. It is traded on cryptocurrency exchanges under the code ETH. Its symbol is the Greek capital sign Xi. It is mined in a similar (but less energy-intensive) bitcoin process.

But ether is not a currency. Its designers describe it as “fuel for the operation of the distributed platform for Ethereum applications. It is a method of payment made by the customers of the platform to the machines performing the requested operations.”

Ether tokens give you access to one of the most complex distributed computing networks in the world. It’s so promising that big companies are falling on top of each other to develop practical, real-world applications for it.

Since most people who trade it don’t really understand and don’t care about its true purpose, the price of ether has skyrocketed in recent weeks.

But eventually, ether will return to a stable price based on the demand for computing services that it can “buy” for people. This price will represent real value which can be determined in the future. There will be a futures market and exchange traded funds (ETFs) for it, because everyone will have a way to assess its core value over time. Just like we do with stocks.

What will this value be? I have no idea. But I know it will be much more than bitcoin.

My advice: Get rid of your bitcoins and buy ether the next time you dive.

The crypto show of the Wild West continues

Here’s a frequently asked question: How do I choose which cryptocurrency to invest in – aren’t they all the same?

There is no doubt that Bitcoin has captured the lion’s share of the cryptocurrency (CC) market and this is largely due to its FAME. This phenomenon is very similar to what happens in national politics around the world, where the candidate takes the majority of votes on the basis of FAME, rather than proven abilities or qualifications to run a nation. Bitcoin is a pioneer in this market space and continues to collect almost all titles on the market. This FAME does not mean that it is perfect for work and it is quite well known that Bitcoin has limitations and problems that need to be solved, but in the world of Bitcoin there is disagreement about how best to solve the problems. As problems arise, there is a constant opportunity for developers to initiate new coins that are targeted to specific situations, and thus differentiate themselves from approximately 1,300 other coins in this market space. Let’s look at two bitcoin rivals and explore how they differ from bitcoin and each other:

Ethereum (ETH) – The Ethereum coin is known as ETHER. The main difference from Bitcoin is that Ethereum uses “smart contracts”, which are objects for maintaining accounts in the Ethereum blockchain. Smart contracts are defined by their creators and they can interact with other contracts, make decisions, store data and send ETHER to others. The performance and services they offer are provided by the Ethereum network, all of which goes beyond what bitcoin or any other blockchain network can do. Smart contracts can act as your stand-alone agent, following your instructions and rules for spending currency and initiating other transactions on the Ethereum network.

Ripple (XRP) – This coin and the Ripple network also have unique features that make it much more than just a digital currency like Bitcoin. Ripple has developed the Ripple Transaction Protocol (RTXP), a powerful financial instrument that allows Ripple exchanges to transfer funds quickly and efficiently. The basic idea is to put money in “gateways”, where only those who know the password can unlock the funds. For financial institutions, this opens up huge opportunities, as it simplifies cross-border payments, reduces costs and provides transparency and security. All this is done with creative and intelligent use of blockchain technology.

The mainstream media cover this market almost daily with current news, but their stories are not very in-depth … they are mostly just dramatic headlines.

The show of the Wild West continues …

The selected crypto / blockchain 5 shares increase on average 109% from 11/17 December. Wild swings continue with daily tours. Yesterday we had South Korea and China at the latest, which tried to bring down the boom in cryptocurrencies.

On Thursday, South Korea’s justice minister, Sang-ki Park, sent global bitcoin prices to temporarily collapse and virtual coin markets to plummet as regulators say they are preparing legislation to ban cryptocurrency trading. Later that day, the South Korean Ministry of Strategy and Finance, one of the main member agencies of the South Korean government’s cryptocurrency regulation working group, came out and said that their department he does not agree with the premature statement of the Ministry of Justice on a potential ban on trading in cryptocurrencies.

While the South Korean government says cryptocurrency trading is nothing more than gambling and they are worried that the industry will leave many citizens in the poor house, their real concern is the loss of tax revenue. This is the same concern that every government has.

China has become one of the world’s largest sources of cryptocurrency mining, but it is now rumored that the government is involved in regulating the electricity used by mining computers. Over 80% of electricity for bitcoin mining today comes from China. Excluding miners, the government would make it difficult for bitcoin users to verify transactions. Mining operations will be relocated, but China is particularly attractive due to very low electricity and land costs. If China addresses this threat, there will be a temporary loss of mining capacity, which will lead to Bitcoin users seeing longer timers and higher transaction verification costs.

This wild journey will continue and much like a boom on the internet, we will see some big winners and eventually some big losers. Also, like the internet boom or the uranium boom, those who enter early will thrive, while mass investors always show up at the end, buying on top.

Stay on the line!