Important: This position should not be considered an investment council. The author focuses on the best currencies in terms of current use and adoption, not from a financial or investment perspective.
In 2017, crypto markets set the new standard for simple profits. Almost every part or chip made incredible returns. “A rising tide throws all the ships,” as they say, and the end of 2017 was a flood. Rising prices have created a positive feedback loop, which is attracting more and more capital into Crypto. Unfortunately, but inevitably, this galloping market is leading to a massive investment. Money has been indiscriminately thrown into all sorts of dubious projects, many of which will not bear fruit.
In the current bearish environment, hype and greed are replaced by a critical appraisal and prudence. Especially for those who have lost money, marketing promises, endless coins and charismatic oratory are no longer enough. Well, the basic reasons to buy or hold a coin are Paramount once again.
Basic factors in evaluating a cryptocurrency-
There are several factors that tend to overwhelm price and price pumps, at least in the long run:
Although the technology of a cryptocurrency or ICO business plan may seem surprising to the user, they are simply dead projects. It is often forgotten that wide acceptance is an essential feature of money. In fact, it is estimated that over 90% of Bitcoin value is a function of the number of users.
While the acceptance of Fiat is trusted by the state, the acceptance of cryptography is purely voluntary. Many factors play into the decision to accept a currency, but perhaps the most important consideration is the likelihood that others will accept the currency.
Decentralization is essential to the model I push of a real cryptocurrency. Without decentralization, we have a little closer to a Ponzi scheme than a real cryptocurrency. Trust in individuals or institutions is the problem — a cryptocurrency tries to solve it.
If dismantling a coin or a central controller could change the transaction register, it is calling into question its fundamental security. The same goes for parts with unproven code that have not been fully tested over the years. The more you can rely on the code to function as described, regardless of human influence, the greater the security of a currency.
Valuable currencies try to improve their technology, but not at the expense of security. True technological advancement is rare because it requires a great deal of expertise — and also wisdom. Although there are always fresh ideas that can be drawn, if you do so puts weakness or criticism of the original purpose of a coin, it loses the issue.
Innovation can be a difficult factor to assess, especially for non-technical users. However, if a currency code is stuck or does not receive updates that address important issues, it could be a sign that developers are weak on ideas or motivations.
The natural economic incentives in a currency are easier to understand for the average person. If a coin had a large pre-mine or an ICO (initial part offer) team held a significant chunk of chips, then it is quite clear that the main motive is profit. By buying what the team has to offer, you play your game and enrich it. Be sure to provide a tangible and reliable value.
5 cryptocurrencies to buy in 2018
There has never been a better time to reevaluate and balance a cryptographic portfolio. Based on their strong foundation, here are five pieces that I think are worth sticking to or maybe buy at their current depressing prices (which, just a warning, can go below).
# 1 Bitcoin (due to its decentralization)
Number one belongs to Bitcoin (BTC), which remains the market leader in all categories. Bitcoin has the highest price, the broadest assumption, the greatest share of security (due to the phenomenal energy consumption of Bitcoin mining), the identity of the most famous brand (forks have tried to be appropriate) and the most great Active and rational development. Alsoshtë is also the only part to date represented in traditional markets in the form of trading the future of Bitcoin on the CME and the American CBOE.
Bitcoin remains the main engine; The performance of all the other pieces is very much related to the performance of Bitcoin. My personal expectation is that the gap between Bitcoin and most – if not all – other parts will widen.
Bitcoin has some promising innovations in the pipeline that will soon be installed as extra layers or soft forks. Examples are the Flash (LN) system, the tree, the Schnorr Mimblewimbleund signatures much more.
In particular, we plan to open a new range of applications for Bitcoin, as it allows for large exchanges, microtransactions and immediate and secure payments. LN is increasingly stable as users test their various options with real Bitcoin. As it becomes easier to use, it can be assumed that it benefits greatly from Bitcoin approval.
# 2 Litecoin (because of his persistence)
Litecoin (LTC) is a Bitcoin clone with another hash algorithm. Although Litecoin no longer has Bitcoin anonymity technology, amazing reports have shown that the adoption of Litecoin in the dark markets is now the second, only Bitcoin. Although a currency I find much more appropriate for the role of buying illegal goods and services, perhaps this presents itself as a result of Litecoin longevity: It was launched in late 2011.
Another factor in favor of Litecoin is that it integrates Bitcoin SegWit technology, which means that Litecoin is prepared for LN. Litecoin can benefit from an exchange of atomic chains. In other words, ensure peer-to-peer currency trading without the participation of third parties (i.e. Exchange). Since Litecoin keeps its code largely synchronized with Bitcoin, it is well positioned to take advantage of Bitcoin technical advancement.
# 3 Ethereum (due to smart contracts)
Ethereum (ETH) has some major issues at the moment. First, governments are hitting the ICO, and rightly so: many have turned out to be 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 right rules are taken to protect investors, Ethereum project scams can claim a certain legitimacy as a platform for financing people.
The second major problem facing Ethereum is the delayed transition to a new hybrid job and battery detection system. The Ethereum GPU mine is currently profitable, but Bitmain has just announced the Ethereum ASIC minor, which is likely to have an impact on the lower lines of GPU miners. It remains to be seen if this will change the POW — and how successful this change will be.
If Ethereum can survive these two major problems – regulation and mining – they will have shown great resilience. Alternatively, there are several competing currencies that follow its shadows, such as Ethereum Classic (etc.), Cardano (ADA) and EOS.
# 4 Monero (due to his anonymity)
Although his approval in the dark markets is not all that could be expected, I (XMR) remain the Prime Minister’s privacy. His reputation and market capitalization are still above those of his rivals – and for good reason.
The Monero code requires less trust than Zcash’s main “loyal” ceremony and had an honest 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 decentralization part of the mines. A significant drop in the hash rate is due to the new version, which is constantly being reported against ASIC. This could also be an opportunity for GPUs and even small CPUs to come back to me. The new version of Monero, 0.12, also includes other improvements that show Monero continues to grow along the sensitive lines.
# 5 iPRONTO (A decentralized incubation platform)
iPRONTO is an Ethereum chain incubation platform dedicated to investors looking for a secure and reliable platform to invest in new ideas and future innovators who can present their ideas and get feedback from users, experts in the field on practice and implementation of derived ideas.
Innovators’ ideas are supported as NES in Smart Contract format will be signed between the expert platform and the client if the client’s business idea to the Commission for examination and registration on the platform. The idea will not be published to all users on the public chain platform, but only to selected members of the target community who are willing to sign the Smart contract to maintain the confidentiality of the idea.