This is a question that is asked frequently How do I decide the best cryptocurrency to invest in? Aren’t all of them identical?
There’s no doubt that Bitcoin has taken the biggest portion of the cryptocurrency (CC) market which is mostly because of its FAME. It’s similar to the current situation in the politics of nations around the globe, where a candidate gets the bulk of votes on the basis of FAME and not on demonstrated abilities or qualifications to run a country. Bitcoin is the leader in the market and continues to be the subject of nearly all the headlines in the market. The FAME does not mean it is the perfect choice for the job. In fact, it is well-known that Bitcoin has its limitations and issues which need to be addressed However, there is a lack of consensus among the Bitcoin world about the best way to solve the issues. As the issues get worse the chances are endless for developers to develop new coins to tackle specific issues, and therefore differentiate them from the roughly 1300 other currencies in this market. Let’s examine two Bitcoin rivals and examine the ways they differ from Bitcoin and also from one another:
Ethereum (ETH) Ethereum (ETH) – Ethereum coin is also known as ETHER. The primary difference between Ethereum and Bitcoin in that Ethereum utilizes “smart contracts” which are account-holding objects that are stored on the Ethereum blockchain. Smart Contracts are designed by their creators and can communicate in conjunction with different contracts. They can take decisions, store information, and even send ETHER to others. The execution and the services they provide are provided through the Ethereum network that is more than what Bitcoin nor any blockchain could perform. Smart Contracts could act as an independent agent, executing your rules and instructions to spend money and initiate additional transactions on Ethereum. Ethereum network.
Ripple (XRP) – This currency as well as the Ripple network have distinct characteristics that make it more than a mere digital currency, like Bitcoin. Ripple has created its own Ripple Transaction Protocol (RTXP) which is a highly efficient financial tool that allows exchanges through the Ripple network to transfer funds fast and effectively. The idea behind it is to put money into “gateways” where only those who have the password are able to access the funds. For financial institutions, this opens many possibilities since it facilitates cross-border transactions as well as reduces costs. It also offers security and transparency. All this is accomplished through the innovative and clever utilization of blockchain technology.
The mainstream media has been covering the market with news breaking stories every day, but they are not very deep in their reports… They are mostly headlines that are dramatic.
This is the Wild West show continues.
The 5 top crypto/blockchain stocks are up by an average of 109 percent from the 11th of December. The wild swings are continuing with daily fluctuations. Yesterday, we saw South Korea and China as the latest to try and shoot down the cryptocurrency boom.
On Thursday the justice minister of South Korea Park Sang-ki caused global bitcoin prices to the brink of collapse and the virtual coin market in turmoil when he was reported to have stated that regulators were in the process of drafting laws to stop cryptocurrency trading. On the same day the South Korean Ministry of Strategy and Finance one of the principal agencies that are part that makes up the South Korean government’s cryptocurrency regulation task force, made a statement and declared that their department doesn’t agree with the unfounded declaration from the Ministry of Justice about a possible ban on trading in cryptocurrency.
Although the South Korean government says cryptocurrency trading is nothing more than a game and is worried that the industry could leave many people in poverty at home, their main concern is the reduction in tax revenues. This is the same worry every government faces.
China has become one of the biggest suppliers of crypto mining. However, it is now believed that the government is considering how to regulate the power source utilized by mining computers. The majority of electrical power used to mine Bitcoin currently is sourced from China. By shutting down miners the government could make it more difficult to Bitcoin users to validate transactions. Mining operations are likely to shift to different locations however, China is especially appealing due to its very affordable electricity costs and the cost of land. If China does not heed threats to stop mining, it would be a temporary reduction in mining capacity, which could cause Bitcoin users to have longer wait times and more expensive costs for the verification of transactions.
The wild ride is not over as did that of the internet boom, we’ll witness some major winners and, eventually, some major losers. Similar to the boom in internet technology, as well as the boom in uranium it is those who are early in the game who are likely to reap rewards as the masses always appear at the end of the day, investing at the top.