Important: This post should not be considered investment advice. The author focuses on the best coins in terms of actual usage 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 got incredible performances. “A rising tide pulls all boats”, as they say, and the end of 2017 was a deluge. Rising prices have created a positive feedback cycle, attracting more and more capital to Crypto. Unfortunately, but inevitably, this galloping market is leading to massive investment. Money has been thrown indiscriminately at all sorts of dubious projects, many of which will not bear fruit.
In today’s bearish environment, hype and greed are replaced by critical assessment and caution. Especially for those who have lost money, marketing promises, endless shillings and charismatic speeches are no longer enough. Well, the basic reasons to buy or hold a coin are Paramount once again.
Fundamental factors in the evaluation of a cryptocurrency-
There are a few factors that tend to beat the hype and prices, at least in the long run:
Although the technology of a cryptocurrency or an ICO business plan may seem amazing 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 Bitcoin’s value is a function of the number of users.
While the acceptance of Fiat is mandated by the State, the acceptance of cryptography is purely voluntary. There are many factors that go 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 I push model of a true cryptocurrency. Without decentralization, we have a little closer to a Ponzi scheme than an actual cryptocurrency. Trust in people or institutions is the problem that a cryptocurrency tries to solve.
If dismantling a currency or a central controller can change the transaction record, its basic security is being called into question. The same goes for parts with untested code that haven’t been thoroughly tested over the years. The more you can count on the code to work as described, regardless of human influence, the more secure a coin is.
Valid coins strive to improve their technology, but not at the expense of security. Real technological progress is rare because it requires a lot of experience, and also wisdom. While there are always fresh ideas that can be bolted on, if doing so introduces vulnerabilities or criticisms of a coin’s original purpose, 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 address 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 for the average person to understand. If a coin had a large pre-mine or an ICO (initial share offering), the team had a significant share of tokens, then it is quite obvious that the main motivation is profit. By buying what the team has to offer, you’re playing your game and enriching it. 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 foundation, here are five pieces that I think are worth sticking with or maybe buying at their current depressed prices (which, just be warned, could drop).
#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 widest adoption, the most security (due to the phenomenal energy consumption of Bitcoin mining), the most famous brand identity (forks have tried to be appropriate), and most of the active and rational development. It is also the only piece so far represented in traditional markets in the form of Bitcoin futures trading on the US CME and CBOE.
Bitcoin remains the main driver; The performance of all other parties 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 several promising innovations in the works that will soon be installed as additional layers or soft forks. Examples are the Flash (LN) system, the tree, Schnorr signatures Mimblewimbleund much more.
In particular, we plan to open up a new range of applications for Bitcoin, as it enables large-scale microtransactions and instant and secure payments. LN is becoming more and more stable as users test their various possibilities with real Bitcoin. As it becomes easier to use, it can be assumed that it benefits greatly from the adoption of Bitcoin.
#2. Litecoin (for its persistence)
Litecoin (LTC) is a Bitcoin clone with a different hash algorithm. Although Litecoin no longer has the anonymity technology of Bitcoin, surprising reports have shown that the adoption of Litecoin in the dark markets is now second only to bitcoin. Although a coin I think is much better suited to the role of purchasing illegal goods and services, perhaps this comes as a result of Litecoin’s longevity: it was launched in late 2011.
Another factor in Litecoin’s favor is that it integrates Bitcoin SegWit technology, which means that Litecoin is LN ready. Litecoin can benefit from an atomic chain exchange. In other words, secure peer-to-peer trading of currencies 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 progress.
#3. Ethereum (due to smart contracts)
Ethereum (ETH) has some major issues at the moment. First, governments are making use of ICOs, 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 some legitimacy as a crowdfunding platform.
The second big problem facing Ethereum is the delayed transition to a new hybrid battery and work detection system. Ethereum GPU mining is currently profitable, but Bitmain 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 if this will change the POW and how successful this change will be.
If Ethereum can survive these two big problems, regulation and mining, it will have shown great resilience. Otherwise, there are several competing coins following in their shadows, such as Ethereum Classic (etc.), Cardano (ADA), and EOS.
#4. Monero (for your anonymity)
Although its adoption in the dark markets is not all that one might hope, I (XMR) is still the privacy of the prime minister. Its reputation and market capitalization are still above those of its rivals, and for good reason.
Monero’s code requires less trust than Zcash’s “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 lesser 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 feedback from users, subject matter experts in practice and implementation of derived ideas.
Innovators’ ideas are supported as the NES in Smart Contract format will be signed between the expert platform and the customer if the customer’s business idea to the Committee for examination and registration on the platform. The idea will not be published to all users on the chain’s public 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.