Important: This position should not be considered an investment board. The author focuses on the best coins in terms of actual use and adoption, not a financial or investment perspective.
In 2017, crypto markets set a new standard for making simple profits. Almost every piece or slice has generated incredible returns. “The rising tide is throwing all the boats away,” they say, and the end of 2017 was a deluge. The price increase has created a positive feedback cycle, which is attracting more and more capital to Crypto. Unfortunately, but inevitably, this rushing market leads to huge investments. Money has been randomly dumped into all kinds of shady projects, and many of them will not pay off.
In the current bearish environment, hype and greed are being replaced by critical evaluation and prudence. Especially for those who have lost money, marketing promises, endless shillings and charismatic rhetoric are no longer enough. Well, the primary reasons to buy or hold a coin are Paramount again.
The main factors in the valuation of cryptocurrency-
There are a few factors that tend to overwhelm the hype and price pumps, in the long run at least:
Although cryptocurrency tech or ICO business plan may seem surprising without users, they are just dead projects. It is often forgotten that widespread acceptance is an essential characteristic of money. In fact, it is estimated that more than 90% of the value of Bitcoin is a function of the number of users.
While acceptance of Fiat is entrusted by the state, acceptance of crypto is purely voluntary. Many factors play into the decision to accept a coin, but perhaps the most important consideration is the likelihood of others accepting the coin.
Decentralization is essential to the payment model of a true cryptocurrency. Without decentralization, we are a bit closer to a Ponzi scheme than to a real cryptocurrency. Trusting people or institutions is the problem – cryptocurrency is trying to solve it.
If breaking up a coin or central console can alter the transaction history, it calls into question its fundamental security. The same goes for parts with an uncertain blade that have not been thoroughly tested over the years. The more reliance on the code to work as described, regardless of human influence, the more secure the coin is.
Good Coins strive to improve their technology, but not at the expense of safety. Real technological progress is rare because it requires a lot of experience – as well as wisdom. Although there are always new ideas that can be conquered, if doing so places weaknesses or critics of 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 coin token is stagnant or has not received updates that deal with important issues, it could be a sign that the developers are weak in terms of ideas or motivation.
It is easy for the average person to understand the economic incentives inherent in the currency. If a coin has a large amount before the mine or the ICO (initial partial offer), the team owns a large share of the chips, then it is quite clear that the main driver is profit. By buying what the team offers, you play and enrich your game. Ensure that you offer tangible and reliable value in return.
5 cryptocurrencies to buy in 2018
There has never been a better time to re-evaluate and balance a crypto wallet. Building on its solid foundation, there are five pieces that I feel are worth holding on to or perhaps buying at their current dismal prices (which, just a warning, can go down).
#1. Bitcoin (due to decentralization)
Number one belongs to Bitcoin (BTC), which remains the market leader in all categories. Bitcoin has the highest price, the widest assumption, the most security (due to the massive energy consumption of Bitcoin mining), the most recognizable brand identity (the forks tried to fit in), and most of the development is active and rational. It is also the only lot so far to be represented in the traditional markets in the form of bitcoin futures trading on the US CME and CBOE.
Bitcoin remains the main driver; The performance of all other parts is closely related to the performance of Bitcoin. My personal expectation is that the gap between Bitcoin and most – if not all – the other parts will widen.
Bitcoin has several promising innovations in the pipeline that will soon be installed as additional layers or soft forks. Examples include the Flash System (LN), the tree, Mimblewimbleund Schnur signatures and much more.
In particular, we plan to open a new set of applications for Bitcoin, as they allow large-scale micro-transactions and instant and secure payments. LN is increasingly stable as users test their various capabilities with real Bitcoin. As it becomes easier to use, it can be assumed that it benefits greatly from the adoption of Bitcoin.
#2. Litecoin (because of its persistence)
Litecoin (LTC) is a copy of Bitcoin using a different hashing algorithm. Although Litecoin no longer has the anonymization technology of Bitcoin, amazing reports have shown that the adoption of Litecoin in dark markets is now second, the only Bitcoin. Although my coin is more suited to the role of acquiring illegal goods and services, this is probably a result of Litecoin’s longevity: it was launched at the end of 2011.
Another factor in Litecoin’s favor is that it integrates Bitcoin SegWit technology, which means Litecoin is intended for LN. Litecoin can benefit from the exchange of atomic chains. In other words, secure peer-to-peer currency trading without the participation of third parties (ie an exchange). Since Litecoin keeps its code largely in sync with Bitcoin, it is well positioned to take advantage of Bitcoin’s technical advances.
#3. Ethereum (due to smart contracts)
Ethereum (ETH) is facing some major issues at the moment. First of all, governments are cracking down on ICOs, and rightfully so: many of them have turned out to be either fraudulent or bankrupt. With most icos running on the Ethereum network as an ERC 20 token, ICO mania has brought a lot of value to Ethereum in recent years. If proper rules are taken to protect investors, Ethereum project scams can claim some legitimacy as a crowdfunding platform.
The second major issue facing Ethereum is the late transition to a new hybrid operating system and battery detection. GPU mining for Ethereum is currently profitable, but Bitmain has just announced an Ethereum secondary ASIC, which is likely to have an impact on the bottom lines of GPU miners. It remains to be seen if this will change the prisoner of war – and how successful that change will be.
If Ethereum can survive these two major problems – regulation and mining – it will show great resilience. Other than that, there are many competing coins that track their shadows, such as Ethereum Classic (etc), Cardano (ADA), and EOS.
#4. Monero (due to anonymity)
Although its adoption in the dark markets is not all that might be expected, (XMR) is still the prime minister’s peculiarity. His reputation and market capital are still higher than that of his competitors — and for good reason.
Monero code required less trust in the main “loyal” Zcash party, and had a fair start, unlike Dash. Monero recently changed his family to defeat a small ASIC development of his algorithm that underscores the miner’s commitment to decentralization. The significant drop in the hash rate is due to the new release, which is constantly being reported against ASIC. This could also be an opportunity for the GPU and even the smaller CPUs to get back at me. The new version of Monero, 0.12, also includes other improvements that show Monero continues to grow along sensitive lines.
#5. iPRONTO (Decentralized Incubation Platform)
iPRONTO is an Ethereum blockchain incubation platform intended for investors looking for a secure and reliable platform to invest in new ideas and future innovators who can present their ideas and receive feedback from users and industry experts on the practice and implementation of derived ideas.
The ideas of the innovators are supported as the NES will be signed in a smart contract format between the expert platform and the client if the client’s business idea is to the examination and registration committee on the platform. The idea will not be published to all users on the public platform of the chain, but only to selected members of the target community willing to sign the smart contract to keep the idea confidential.