The Wild West Crypto Show 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 taken the lion’s share of the cryptocurrency (CC) market, and this is largely due to its fame. This phenomenon is similar to what is happening in national politics around the world, where a candidate wins the majority of votes on the basis of GLORY, and not on any proven ability or qualification to run a nation. Bitcoin is a pioneer in this market space and continues to collect almost all market titles. This GLORY does not mean that it is perfect for the job, and it is well known that Bitcoin has limitations and problems that need to be solved, however, in the world of Bitcoin there are disagreements about how best to solve problems. As the problems grow, there is a constant opportunity for developers to initiate new coins that deal with certain situations and thus differ 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 from each other:

Ethereum (ETH) – Ethereum coin is known as ETHER. The main difference from Bitcoin is that Ethereum uses “smart contracts” which are objects that hold accounts on the Ethereum blockchain. Smart contracts are defined by their creators and they can communicate with other contracts, make decisions, store data and send ETHER to others. The execution 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 autonomous 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 tool that enables exchanges on the Ripple network to transfer funds quickly and efficiently. The basic idea is to put the 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 through creative and intelligent use of blockchain technology.

The mainstream media covers this market with the latest news almost every day, however, there is little depth in their stories … these are mostly just dramatic headlines.

The show Wild West continues …

The 5 stocks you choose crypto / blockchain have grown on average 109% from 11/17 December. Wild swings continue with daily rotations. Yesterday we had South Korea and China the latest to try to bring down the cryptocurrency boom.

South Korean Justice Minister Park Sang-ki on Thursday sent global bitcoin prices into temporary decline and virtual coin markets into turmoil when he reportedly said regulators were preparing a law banning 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 their department disagrees with a premature statement by the Ministry of Justice on a potential ban on cryptocurrency trading.

Although the South Korean government says cryptocurrency trading is nothing but gambling, and they are worried that the industry will leave many citizens in a poor house, their real concern is the loss of tax revenues. That is the same concern of every government.

China has grown into one of the world’s largest sources of cryptocurrency mining, but now it is rumored that the government is investigating the regulation of electricity used by computers for mining. Over 80% of the electricity for Bitcoin mining today comes from China. By shutting down the miners, the government would make it harder for Bitcoin users to verify transactions. Mining will move to other places, but China is particularly attractive due to very low electricity and land costs. If China continues with this threat, there will be a temporary loss of mining capacity, which would result in Bitcoin users seeing longer timers and higher transaction verification costs.

This wild ride will continue, and similar to the internet boom, we will see some big winners, and in the end some big losers. Also, similar to the Internet, or the uranium boom, those who enter early will prosper, while mass investors always show up at the end, buying at the top.

Stay Tuned!