Important: This position should not be considered 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, cryptographic markets set a new standard for easy profit. Almost every piece or chip has made amazing returns. “The rising tide is throwing all the boats,” as they say, and the end of 2017 was a flood. The increase in prices has created a cycle of positive feedback, which is attracting more and more capital to Crypto. Unfortunately, but inevitably, this galloping market leads to huge investments. Money has been thrown indiscriminately into all sorts of dubious projects, many of which will not bear fruit.
In the current bearish environment, hype and greed have been replaced by critical appraisal and prudence. Especially for those who have lost money, marketing promises, endless shillings and charismatic oratorios are no longer enough. Well, the main reasons for buying or keeping coins are again Paramount.
Basic factors in the assessment of cryptocurrency
There are some factors that tend to overcome hype and cost, at least in the long run:
While cryptocurrency or ICO business plan technology may seem surprising without users, they are just dead projects. It is often forgotten that widespread acceptance is an essential feature of money. In fact, it is estimated that over 90% of the value of Bitcoin is a function of the number of users.
While the acceptance of Fiat is entrusted to the state, the acceptance of cryptography is purely voluntary. Many factors play a role in the decision to accept a coin, but perhaps the most important factor is the likelihood that others will accept the coin.
Decentralization is necessary for the I push model of real cryptocurrency. Without decentralization, we are a little closer to the Ponzi scheme than the real cryptocurrency. Trust in individuals or institutions is a problem – cryptocurrency is trying to solve it.
If dismantling a coin or a central controller can change the transaction record, it jeopardizes its basic security. The same goes for parts with unverified code that haven’t been thoroughly tested in years. The more you can count on the code to work as described, regardless of human influence, the greater the security of the coin.
Valid coins seek to improve their technology, but not at the expense of security. Real technological advancement is rare because it requires a lot of expertise – but also wisdom. While there are always fresh ideas that can be tricked, if that leads to vulnerability or criticism 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 currency stagnates or does not receive updates that deal with important issues, it may be a sign that developers are weak in terms of ideas or motivation.
It is easier for the average person to understand the economic incentives inherent in a currency. If the coin had a large pre-mine or the ICO (initial offer) team had a significant share of chips, then it is quite obvious that the main motivation is profit. By buying what the team offers, you play your game and enrich it. Be sure to provide 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 cryptographic portfolio. Based on their solid foundation, here are five pieces that I think are worth keeping or perhaps buying at their current depressing prices (which, we only warn you, could go lower).
# 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, most security (due to the phenomenal energy consumption of Bitcoin mining), the most famous brand identity (forks have tried to be appropriate), and most development Active and rational. It is also the only piece to date represented in traditional markets in the form of Bitcoin futures on the US CME and CBOE.
Bitcoin remains the main engine; The performance of all other parts is highly correlated with the performance of Bitcoin. My personal expectation is that the gap between Bitcoin and most, if not all, of the other parts will widen.
Bitcoin has several promising innovations in preparation that will soon be installed as additional layers or soft forks. Examples are Flash system (LN), tree, Schnorr signatures Mimblewimbleund much more.
In particular, we plan to open a new range of applications for Bitcoin, because it enables large, microtransactions and instant and secure payments. LN is becoming more stable as users test their various capabilities with real Bitcoin. As it becomes easier to use, it can be assumed that it has great benefits from adopting Bitcoin.
# 2. Litecoin (because of its consistency)
Litecoin (LTC) is a clone of Bitcoin with a different hash algorithm. Although Litecoin no longer has Bitcoin anonymity technology, incredible reports have shown that the adoption of Litecoin in dark markets is now the second, only bitcoin. Although the currency I have is much more suitable for acquiring illegal goods and services, it may be presented as a result of the longevity of Litecoin: it was launched in late 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 the exchange of atomic chains. In other words, secure peer-to-peer currency trading without the involvement of third parties (i.e. exchange). Because Litecoin keeps its code largely in sync with Bitcoin, it is well positioned to benefit from Bitcoin’s technical advances.
# 3. Ethereum (due to intelligent contracts)
Ethereum (ETH) is currently having some major problems. First of all, governments are shooting at ICOs, and rightly so: many have turned out to be either fake or bankrupt. Since most icos run on the Ethereum network as an ERC token 20, ICO mania has brought great value to Ethereum in recent years. If appropriate investor protection rules are in place, scams in Ethereum projects may require some legitimacy as a crowdfunding platform.
Another major problem facing Ethereum is the delayed transition to a new hybrid performance and battery detection system. Ethereum’s mining GPU is currently profitable, but Bitmain has just announced Ethereum ASIC minor, which is likely to have an impact on the lower lines of GPU miners. It remains to be seen whether this will change prisoners of war and how successful it will be.
If Ethereum can survive these two main problems – regulation and mining – it will show great resilience. By the way, there are several competing currencies that follow its shadows, such as Ethereum Classic (etc.), Cardano (ADA) and EOS.
# 4. Monero (due to his anonymity)
While its adoption in the dark markets is not all that could be expected, I (XMR) remains the prime minister’s privacy. Its reputation and market capitalization are still above those of its rivals – and with good reason.
Monero’s code required less self-confidence than Zcash’s “loyal” key ceremony, and he had an honest start, unlike Dash. The fact that Monero recently changed its Pow to defeat the development of a small ASIC for its algorithm confirms the commitment of part of the decentralization of mining. The 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 GPUs and even smaller processors to contact me. The new version of Monero, 0.12, also includes other improvements that show that Monero continues to grow along sensitive lines.
# 5. iPRONTO (decentralized incubation platform)
iPRONTO is an Ethereum incubation platform chain 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 opinions from users, experts in the field of practice and implementation of derived ideas.
The ideas of the innovators are supported because the NES in Smart Contract format will be signed between the expert platform and the customer if the client’s business idea is sent to the Commission for testing and registration on the platform. The idea will not be published for all users on the public platform of the chain, but only for selected members of the target community who are willing to sign a Smart contract in order to maintain the confidentiality of the idea.