Important: This position should not be considered as investment advice. The author focuses on the best coins in terms of actual use and acceptance, not from a financial or investment point of view.
In 2017, cryptographic markets set the new standard for simple profits. Almost every figure or chip brought in incredible income. “The rising tide is throwing all the boats,” as they say, and the end of 2017 was a flood. The increase in prices has created a positive feedback cycle that is attracting more and more capital to Crypto. Unfortunately, but inevitably, this galloping market leads to a huge investment. The money has been thrown indiscriminately into all sorts of dubious projects, many of which will not bear fruit.
In today’s bearish environment, noise and greed are replaced by critical appraisal and caution. 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 Paramount.
The main factors in the evaluation of cryptocurrency-
There are some factors that tend to conquer hip-hop and price pumps, at least in the long run:
Although cryptocurrency technology or an ICO business plan may seem surprising without users, they are just dead projects. It is often forgotten that widespread acceptance is an essential feature of money. In fact, it is estimated that over 90% of the value of bitcoin is a function of the number of users.
While the acceptance of Fiat is entrusted to the state, the acceptance of cryptography is purely voluntary. Many factors play a role in the decision to accept a coin, but perhaps the most important consideration is the likelihood that others will accept the coin.
Decentralization is essential for the I push Model of a true cryptocurrency. Without decentralization, we have a little closer to a Ponzi scheme than a real cryptocurrency. Trust in individuals or institutions is the problem that cryptocurrency is trying to solve.
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 unproven code that have not been thoroughly tested over the years. The more you can rely on the code to function as described, regardless of human influence, the greater the security of a coin.
Valid coins seek to improve their technology, but not at the expense of safety. True technological progress is rare because it requires a lot of experience – and also wisdom. Although there are always fresh ideas that can be fucked up if it puts vulnerabilities or critics on the original purpose of the coin, it misses the point.
Innovation can be a difficult factor to assess, especially for non-technical users. However, if the currency code is stagnant or does not receive updates that deal with important issues, this may be a sign that developers are weak in terms of ideas or motivation.
The economic incentives inherent in a currency are easier for ordinary people to perceive. If a coin had a large pre-mine or ICO (offer for the initial part), the team has a significant share of chips, then it is quite obvious that the main motivation is the profit. By buying what the team offers, you play your game and enrich it. Remember to 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 cryptographic portfolio. Based on their solid foundation, here are five pieces that I think are worth sticking to or maybe buying at their current depressing prices (which, just a warning, can 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 energy consumption in bitcoin mining), the most famous brand identity (forks tried to be appropriate) and most of the development Active and rational. This is the only part so far that is presented on traditional markets in the form of bitcoin futures trading of the American CME and CBOE.
Bitcoin remains the main engine; The effectiveness of all other parts is strongly related to the effectiveness of Bitcoin. My personal expectation is that the difference between bitcoin and most, if not all other parts will increase.
Bitcoin has several promising innovations that will soon be installed as additional layers or soft forks. Examples of this are the Flash system (LN), the tree, the signatures of Schnorr Mimblewimbleund much more.
In particular, we plan to open a new set of applications for bitcoin, as it allows large-scale, micro-transactions and immediate and secure payments. LN is becoming more stable as users test their various capabilities with real bitcoin. As it becomes easier to use, it can be assumed that it will benefit significantly from the adoption of bitcoin.
# 2. Litecoin (due to its persistence)
Litecoin (LTC) is a branch of bitcoin with a different hash algorithm. Although Litecoin no longer has Bitcoin’s anonymity technology, incredible reports show that the adoption of Litecoin in the dark markets is now the second, only bitcoin. Although the currency I have is much more appropriate for the role of acquiring illegal goods and services, perhaps this is a result of the longevity of Litecoin: It was released in late 2011.
Another factor in favor of Litecoin is that it integrates Bitcoin SegWit technology, which means that Litecoin is ready for LN. Litecoin can benefit from the exchange of atomic chains. In other words, ensure equivalent currency trading without the participation of third parties (ie an exchange). Because Litecoin keeps its code largely synchronized with Bitcoin, it is in a good position to take advantage of Bitcoin’s technical advances.
# 3. Ethereum (because of smart contracts)
Ethereum (ETH) has some big problems right now. First, governments are subject to ICOs and rightly so: many have proven to be either fraudulent or bankrupt. Since most icos run on the Ethereum network as an ERC marker 20, the ICO craze has brought great value to Ethereum in recent years. If appropriate investor protection rules are in place, scams involving Ethereum projects may claim some legitimacy as a crowdfunding platform.
The second major problem facing Ethereum is the delayed transition to a new hybrid system for battery operation and detection. Ethereum’s GPU is currently profitable, but Bitmain has just announced a minor Ethereum ASIC, which is likely to affect the bottom lines of GPU miners. It remains to be seen whether this will change the POW and how successful this change will be.
If Ethereum can survive these two main problems – regulation and digging – it will show great resilience. Otherwise, there are several competing currencies tracking its shadows, such as Ethereum Classic (etc.), Cardano (ADA) and EOS.
# 4. Monero (because of his anonymity)
Although its acceptance in the dark markets is not all that can be expected, I (XMR) remains the Prime Minister’s confidentiality. Its reputation and market capitalization are still above those of its rivals – and with good reason.
The Monero code requires less confidence that Zcash is a “loyal” key ceremony and has had a fair start, unlike Dash. The fact that Monero recently changed its Pow to beat the development of a small ASIC for its algorithm confirms the piece’s commitment to dignifying digging. A significant drop in hashing speed is due to the new version, which is constantly reported against ASIC. This can also be an option for GPUs and even minor CPUs to connect to me. The new version of Monero, 0.12, includes other improvements that show that Monero continues to grow along sensitive lines.
# 5. IPRONTO (Decentralized Incubation Platform)
iPRONTO is an Ethereum chain incubation platform dedicated to investors looking for a secure and reliable platform to invest in new ideas and future innovators who can present their ideas and get opinions from users, experts in the practice and application of derivative 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 before the Committee for verification and registration in the platform. The idea will not be published for all users of the public platform of the chain, but only for selected members of the target community who are willing to sign the smart contract to keep the idea confidential.