A frequently asked question is: How do I choose which cryptocurrency to invest in – not all of them are the same?
Undoubtedly, Bitcoin has captured the lion’s share of the cryptocurrency market (CC), and this is largely due to its popularity. This phenomenon is more like what is happening in national politics in a world where a candidate receives a majority of FAME-based votes, rather than the proven abilities and habits to govern a nation. Bitcoin is a leader in this market space and almost continues to collect market headlines. This Fame does not mean that it is perfect for business, and it is well known that Bitcoin has problems that need to be limited and solved, but in the world of Bitcoin, there is disagreement on how best to solve problems. As the problems increase, there is a constant opportunity for developers to launch new coins that address specific situations and thus stand out from the approximately 1,300 other coins in this market space. Let’s take a look at two Bitcoin competitors and explore how they differ from Bitcoin and each other:
Ethereum (ETH) – Ethereum coin is known as ETHER. The main difference from Bitcoin is that Ethereum uses “smart contracts” that are objects of account storage in the Ethereum blockchain. Smart Contracts are defined by the developers and can interact with other contracts, make decisions, store information, and send ETHER to others. The execution and services they offer are provided by the Ethereum network, and all of this is higher than what Bitcoin or any other blockchain network can do. Smart Contracts can act as your autonomous agent, following your instructions and rules for spending currency and launching other transactions on the Ethereum network.
Ripple (XRP) – This coin and Ripple network has unique features that make it more than a digital currency like Bitcoin. Ripple has developed the Ripple Transaction Protocol (RTXP), a powerful financial instrument that allows the rapid and efficient transfer of exchanges in the Ripple network. The idea is to put money in “links” that only those who know the password can open. This opens up great opportunities for financial institutions, as it facilitates cross-border payments, reduces costs and provides transparency and security. All this is done with the creative and intelligent use of blockchain technology.
The mainstream media cover this market with news stories almost every day, but the depth of their stories is shallow … mostly dramatic headlines.
The Wild West show continues …
Average 5 part crypto / blockchain option 109% Since 11/17 December. Wild swings continue with daily gyrations. Yesterday, we were the last to try to bring down the cryptocurrency explosion in South Korea and China.
On Thursday, South Korean Justice Minister Park Sang-ki temporarily lowered global bitcoin prices and put virtual coin markets in turmoil when he said regulators were drafting a law to ban cryptocurrency trading. On the same day, the South Korean Ministry of Strategy and Finance, one of the main members of the South Korean government’s cryptocurrency regulation working group, came out and said it had departments. do not agree With an early statement from the Ministry of Justice on a potential cryptocurrency trading ban.
While the South Korean government says cryptocurrency trading is nothing more than a gamble and says it is worried that many industry citizens will be left in a poor home, their real concern is the loss of tax revenue. This is the same concern of every government.
China has become one of the world’s largest sources of cryptocurrency mining, but there are now reports that the government has begun to regulate the electricity used by mining computers. Today, more than 80% of the electricity to produce Bitcoin comes from China. By shutting down miners, the government will make it harder for Bitcoin users to verify transactions. Mining operations will move elsewhere, but China is particularly attractive due to very low electricity and land costs. If China reacts to this threat, there will be a temporary loss of mining capability, which will result in Bitcoin users spending longer and spending more to verify the transaction.
This wild walk will continue and like the internet boom, we will see some big winners and finally some big losers. Also, like the internet boom or the uranium boom, early entrants will thrive, with mass investors always buying at the top and always appearing at the end.