Important: This position should not be considered as investment advice. The author focuses on the best coins in terms of actual use and adoption, not from a financial or investment perspective.
In 2017, crypto markets set the new standard for simple profits. Almost every piece or chip has made incredible returns. “A rising tide lifts all boats,” as they say, and the end of 2017 was a deluge. The rise in prices has created a positive feedback cycle, attracting more and more capital into Crypto. Unfortunately, but inevitably, this galloping market leads to massive investment. Money has been thrown indiscriminately into all sorts of dubious projects, many of which will bear no fruit.
In the current bearish environment, hype and greed are being replaced by critical assessment and caution. Especially for those who have lost money, marketing promises, endless shillings and charismatic speakers are no longer enough. Well, the basic reasons to buy or hold a coin are Paramount once again.
Fundamental factors in valuing a cryptocurrency-
There are several factors that tend to conquer hype and price pumps, at least in the long run:
Although the technology of a cryptocurrency or an ICO business plan may seem surprising without users, they are only 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 the acceptance of Fiat is entrusted by the State, the acceptance of cryptography is purely voluntary. Many factors play into the decision to accept a coin, but perhaps the most important is the likelihood that others will accept the coin.
Decentralization is essential to the I push Model of a true cryptocurrency. Without decentralization, we are a bit closer to a Ponzi scheme than a true cryptocurrency. Trust in individuals or institutions is the problem – a cryptocurrency tries to solve it.
If the dismantling of a currency or a central controller can change the transaction record, it calls into question its basic security. The same applies to parts with unproven code that have not been thoroughly tested over the years. The more you can count on the code to function as described, regardless of human influence, the greater the security of a coin.
Valid coins strive to improve their technology, but not at the expense of security. True technological progress is rare because it requires a lot of know-how and even wisdom. Although there are always fresh ideas that can be brought up, if you do so you are vulnerable or critical of the original purpose of a coin, it misses the point.
Innovation can be a difficult factor to assess, especially for non-technical users. However, if a currency code is stagnant or does not receive updates that deal with important issues, it can be a sign that the developers are weak on ideas or motivations.
The economic incentives inherent in a currency are easier to understand for the average person. If a coin had a large pre-mine or an ICO (initial share offering) the team held a significant part of chips, then it is quite obvious that the main motivation is profit. Buy what the team offers, play your game and get rich. Make sure you provide tangible and reliable value in return.
5 cryptocurrencies to buy in 2018
There has never been a better time to reassess and rebalance a crypto portfolio. Based on their solid base, here are five pieces that I feel are worth attacking or maybe buying at their current depressed prices (which, just a warning, could go lower).
#1. Bitcoin (because of its decentralization)
Number one belongs to Bitcoin (BTC), which remains the market leader in all categories. Bitcoin has the highest price, the widest adoption, the most security (due to the phenomenal energy consumption of Bitcoin mining), the most famous brand identity (the forks have tried to be appropriate) , and most of the Active and rational development. It is also the only piece to date that is represented in the traditional markets in the form of Bitcoin futures trading in the American CME and CBOE.
Bitcoin remains the main driver; The performance of all other shares is highly correlated with the performance of Bitcoin. My personal expectation is that the gap between Bitcoin and most, if not all other parties, will widen.
Bitcoin has many promising innovations in the pipeline that will soon be installed as additional layers or soft forks. Examples are the Flash system (LN), the tree, Schnorr signatures Mimblewimbleund many more.
In particular, we plan to open a new range of applications for Bitcoin, because it allows large-scale, microtransactions and instant and secure payments. LN is increasingly stable as users test its various possibilities with real Bitcoin. When it becomes easier to use, it can be assumed to benefit greatly from the adoption of Bitcoin.
#2. Litecoin (because of its persistence)
Litecoin (LTC) is a clone of Bitcoin with a different hash algorithm. Although Litecoin no longer has the technology of anonymity of Bitcoin, amazing reports have shown that the adoption of Litecoin in the dark markets is now second, the only bitcoin. Although it is a coin that I have much more appropriate for the role of purchasing illegal goods and services, perhaps this appears as a result of the longevity of Litecoin: It was launched at the end of 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 an atomic chain exchange. In other words, ensure peer-to-peer trading of currencies without third party participation (ie exchange). Since Litecoin keeps its code largely synchronized with Bitcoin, it is well placed to take advantage of Bitcoin’s technical progress.
#3. Ethereum (via smart contracts)
Ethereum (ETH) has some major problems at the moment. First of all, governments are cracking down on ICOs, and rightly so: many have become either fraudulent or bankrupt. Since most icos run on the Ethereum network as an ERC 20 token, the ICO craze has brought a lot of value to Ethereum in recent years. If the appropriate rules are taken to protect investors, scams of Ethereum projects can claim some legitimacy as a crowdfunding platform.
The second major problem facing Ethereum is the delayed transition to a new hybrid system of work and battery detection. Ethereum GPU mining is currently profitable, but Bitmain has just announced a smaller Ethereum ASIC, which is likely to have an impact on the bottom lines of GPU miners. It remains to be seen whether the POW will change—and how successful this change will be.
If Ethereum can survive these two major problems – regulation and mining – it will have shown great resilience. Otherwise, there are many competing coins following their shadows, such as Ethereum Classic (etc), Cardano (ADA) and EOS.
#4. Monero (because of its anonymity)
Although its adoption in the dark markets is not all that could be expected, I (XMR) remains the privacy of the Prime Minister. Its reputation and market capitalization are consistently above those of its rivals – and for good reason.
Monero code requires less confidence than the Zcash “loyal” key ceremony, and it had a fair start, unlike Dash. That Monero recently changed its Pow to defeat the development of a small ASIC for its algorithm confirms the commitment of the mining decentralization piece. A significant drop in the hash rate is due to the new version, which is constantly reported against ASIC. This could also be an opportunity for the GPU and even the minor CPUs to come back to me. The new version of Monero, 0.12, also includes other improvements that show that Monero continues to grow on sensitive lines.
#5. iPRONTO (A Decentralized Incubation Platform)
iPRONTO is an Ethereum chain incubation platform dedicated to investors who are looking for a safe and reliable platform to invest in new ideas and future innovators who can present their ideas and receive opinions from users, Experts in the field on the practice and the implementation of derived ideas.
The ideas of 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 to the Committee for examination and registration on the platform. The idea will not be published for all users on the chain’s public platform, but only for selected members of the target community who are willing to sign the Smart contract to keep the idea confidential.