Here is 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 captured the lion’s share of the cryptocurrency (CC) market, and this is largely due to its FAMES. This phenomenon is very much like what is happening in national politics around the world, where a candidate captures the majority of votes based on FAME, rather than any proven ability or qualification to govern a nation. Bitcoin is a pioneer in this market space and continues to collect almost all market titles. This FAME does not mean that it is perfect for the job and it is well known that Bitcoin has limitations and problems to be solved, however, in the Bitcoin world there is disagreement on how to better solve the problems. As the problems fade, there is a constant opportunity for developers to initiate new currencies that address specific situations and thus differentiate themselves from approximately 1300 other currencies in this market space. Let’s look at two Bitcoin rivals and explore how they differ from Bitcoin and from each other:
Ethereum (ETH) The Ethereum coin is known as ETHER. The main difference from Bitcoin is that Ethereum uses “smart contracts” which are objects that hold accounts in the Ethereum network block. Intelligent contracts are defined by their creators and they can interact with other contracts, make decisions, store data and send ETHER to others. The execution and services they provide are provided by the Ethereum network, all of which is beyond what Bitcoin or any other blockchain network can do. Smart contracts can act as your autonomous agent, obeying your instructions and rules for spending money and starting other transactions on the Ethereum network.
Ripple (XRP) – This currency 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 allows exchanges on the Ripple network to transfer funds quickly and efficiently. The basic idea is to put money in “gateways” where only those who know the password can unlock the funds. This opens up great opportunities for financial institutions, as it simplifies cross-border payments, reduces costs and ensures transparency and security. This is all done with the creative and intelligent use of blockchain technology.
The mainstream media is covering this market with new news almost every day, however, there is little depth to their stories … they are mostly just dramatic headlines.
The Wild West show continues …
5 crypto / blockchain election stocks are on average higher 109% since 11/17 December. Wild oscillations continue with daily giraffes. Yesterday we had South Korea and China most recently trying to break the cryptocurrency boom.
On Thursday, South Korean Justice Minister Park Sang-ki sent global bitcoin prices temporarily falling and virtual currency markets in turmoil when he reportedly said regulators were preparing legislation to ban 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 regulatory task force, came out and said that their department disagrees with the early statement of the Ministry of Justice regarding a possible ban on cryptocurrency trading.
While the South Korean government says the cryptocurrency trade is nothing more than gambling, and they are worried that the industry will leave many citizens in poor housing, their real concern is the loss of tax revenue. This is the same concern that every government has.
China has grown into one of the world’s largest sources of cryptocurrency mining, but now the government is said to be seeking to regulate the electricity used by mining computers. Over 80% of the electricity to mine Bitcoin today comes from China. By closing the miners, the government would make it more difficult for Bitcoin users to verify transactions. Mining operations will move to other countries, but China is particularly attractive due to very low electricity and land costs. If China pursues this threat, there will be a temporary loss of mining capacity, which will result in Bitcoin users seeing longer timers and higher costs for transaction verification.
This wild journey will continue, and just like the internet boom, we will see some big winners, and eventually, some big losers. Also, similar to the internet boom, or uranium boom, are those who start early those who will progress, while massive investors always show up at the bottom, buying at the top.