Important: This position should not be viewed as investment advice. The author focuses on the best coins in terms of actual use and adoption rather than a financial or investment point of view.
In 2017, the crypto markets set a new standard for simple profit. Almost every piece or trick made incredible profits. “The tide throws all boats,” as they say, and the end of 2017 was a flood. The rise in prices has created a positive feedback loop that attracts more and more capital to Crypto. Unfortunately, but inevitably, this booming market is leading to huge investments. Money is indiscriminately invested in all sorts of dubious projects, many of which will not bring results.
In the current bearish environment, hype and greed are giving way to criticism and caution. Especially for those who have lost money, marketing promises, endless shillings and charismatic oratorios are no longer enough. Well, the main reasons to buy or hold a coin are Paramount again.
Fundamental factors in cryptocurrency valuation –
There are several factors that tend to beat the hype and drive prices up, at least in the long term:
Angle of adoption
While cryptocurrency technology or ICO business plan may seem amazing without users, they are just dead projects. It is often forgotten that widespread acceptance is an important feature of money. In fact, it is estimated that over 90% of the value of Bitcoin depends on the number of users.
While Fiat’s adoption is mandated by the state, the adoption of crypto is purely voluntary. Many factors influence the decision to accept the coin, but perhaps the most important consideration is the likelihood that others will accept the coin.
Decentralization is essential to the true cryptocurrency model. Without decentralization, we are a little closer to the Ponzi scheme than to the real cryptocurrency. Trust in people or institutions is a problem that cryptocurrency is trying to solve.
If the takedown of the coin or the central controller could change the transaction record, it would question its underlying security. The same goes for unproven coding parts that haven’t been thoroughly tested over the years. The more you can count on the code to function as described, regardless of human influence, the more secure the coin will be.
Valid coins seek to improve their technology, but not at the expense of security. Real technical progress is rare because it requires a lot of experience as well as wisdom. While there are always fresh ideas that can be refuted, if this makes them vulnerable or criticizes the original purpose of the coin, it is overlooked.
Innovation can be a difficult factor to measure, especially for non-technical users. However, if the currency code is not working or is not receiving updates regarding important issues, this could be a sign that the developers are weak on ideas or motives.
It is easier for the average person to understand the economic incentives inherent in a currency. If a coin had a large pre-mine or ICO (initial offer of a part), the team had a significant share of chips, then it is quite obvious that the main motivation is profit. By buying what the team has to offer, you are playing your game and enriching it. Be sure to provide tangible and reliable value in return.
5 cryptocurrencies to buy in 2018
Now is the perfect time to reassess and rebalance your crypto portfolio. Building on their solid foundation, here are five things I think are worth sticking to or perhaps buying at their current depressed prices (which, just as a warning, could fall).
# 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 assumptions, most of the security (due to the phenomenal power consumption of bitcoin mining), the most famous brand identity (forks tried to fit), and most of the development is Active and Sustainable. It is also the only one to date that is represented in traditional markets in the form of bitcoin futures traded 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. I personally expect that the gap between Bitcoin and most, if not all other parts will widen.
Bitcoin has several promising innovations in development that will soon be installed as additional layers or soft forks. Examples are Flash (LN) system, tree, Schnorr signatures, Mimblewimbleund, and more.
In particular, we are planning to open a new suite of Bitcoin applications as it allows large-scale microtransactions and instant and secure payments. LN is becoming more stable as users test their various possibilities with real bitcoin. As it gets easier to use, it can be assumed that it will benefit greatly from the adoption of Bitcoin.
No. 2. Litecoin (due to its durability)
Litecoin (LTC) is a bitcoin clone with a different hashing algorithm. Although Litecoin no longer has Bitcoin anonymity technology, amazing reports have shown that Litecoin’s adoption in dark markets is now the second, only Bitcoin. While I have a currency that is more suitable for acquiring illegal goods and services, perhaps this is due to the longevity of Litecoin: it was launched at the end of 2011.
Another factor in Litecoin’s favor is that it integrates Bitcoin’s SegWit technology, which means Litecoin is LN-ready. 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. exchanges). Since Litecoin keeps its code largely in sync with Bitcoin, it is well positioned to capitalize on the technological advancement of Bitcoin.
Number 3. Ethereum (due to smart contracts)
Ethereum (ETH) has serious problems at the moment. First of all, governments are hacking ICOs, and rightly so: many of them turned out to be either scammers or bankrupt. Since most ICOs operate on the Ethereum network as ERC 20 tokens, the ICO mania has brought great value to Ethereum in recent years. If regulations are in place to protect investors, Ethereum project scams could claim some legitimacy as a crowdfunding platform.
The second major challenge Ethereum is facing is the delayed transition to a new hybrid work and battery detection system. Ethereum mining GPUs are currently lucrative, but Bitmain just announced a minor Ethereum ASIC that is likely to impact the bottom line of GPU miners. It remains to be seen if this will change the POWs and how successful the change will be.
If Ethereum can survive, these two major issues – regulation and mining – will show greater resilience. Otherwise, there are several competing currencies tracking its shadows, such as Ethereum Classic (etc.), Cardano (ADA), and EOS.
No. 4. Monero (due to his anonymity)
While its implementation in dark markets is not all that one might expect, I (XMR) remains the prime minister’s confidential information. Its reputation and market capitalization is still higher than that of its competitors, and for good reason.
The Monero code requires less confidence than the Zcash “loyalty” key ceremony, and has a good start unlike Dash. That Monero recently changed its Pow to thwart the development of a small ASIC for its algorithm reinforces its commitment to decentralizing mining. The significant drop in hashrate is due to the new version, which is constantly being reported by ASIC. It could also be an opportunity for the GPU and even minor processors to come back to me. The new version of Monero, 0.12, also includes other improvements that show that Monero continues to evolve in sensitive areas.
No. 5. iPRONTO (decentralized incubation platform)
iPRONTO is an Ethereum incubation platform designed for investors looking for a safe and reliable platform to invest in new ideas and future innovators who can present their ideas and get the opinions of users, experts in the field about the practice and implementation of the ideas received.
The ideas of innovators are supported, since the NES in the format of a smart contract will be signed between the expert platform and the customer if the customer’s business idea is submitted to the Committee for consideration and registration on the platform. The idea will not be published for all users on the public platform of the network, but only for selected members of the target community who are ready to sign a smart contract to preserve the confidentiality of the idea.