Here's a question that often comes up: How do I choose which crypto currency I want to invest in – aren't they all the same?
There is no doubt that Bitcoin has captured the lion's share of the crypto currency (CC) market, and that is largely due to his FAME. This phenomenon is very similar to what is happening in national politics around the world, where a candidate records the majority of votes based on FAME, rather than demonstrable skills or qualifications to govern a nation. Bitcoin is the pioneer in this market space and continues to make almost all headlines. This FAME does not mean that it is perfect for the task and it is fairly well known that Bitcoin has limitations and problems that need to be solved, but there is disagreement in the Bitcoin world about how to best solve the problems. As the problems arise, there is a continuous opportunity for developers to initiate new currencies that address specific situations, and thus distinguish themselves from the approximately 1,300 other currencies in this market space. Let's look at two Bitcoin rivals and investigate how they differ from Bitcoin and from each other:
Ethereum (ETH) – The Ethereum coin is known as ETHER. The most important difference with Bitcoin is that Ethereum uses "smart contracts", these are objects on the Ethereum blockchain. Smart Contracts are defined by their creators and they can communicate with other contracts, make decisions, store data and send ETHER to others. The implementation and services that they offer are provided by the Ethereum network, which all goes beyond what the Bitcoin or another blockchain network can do. Smart Contracts can act as your autonomous agent, obey your instructions and rules for issuing currencies and initiating other transactions on the Ethereum network.
Ripple (XRP) – This coin and the Ripple network also have unique functions, making it much more than just a digital currency such as Bitcoin. Ripple has developed the Ripple Transaction Protocol (RTXP), a powerful financial tool that allows exchanges on the Ripple network to transfer money quickly and efficiently. The basic idea is to place money in "gateways" where only those who know the password can unlock the money. This offers enormous possibilities for financial institutions, because it simplifies cross-border payments, reduces costs and offers transparency and security. All this is done with creative and intelligent use of blockchain technology.
The regular media cover this market almost every day with the latest news, but their stories have little depth … they are usually just dramatic headlines.
The Wild West show continues …
The 5 stock crypto / blockchain picks have risen on average 109% since 11/17 December. The wild swings continue to spin daily. Yesterday we had South Korea and China to try and shoot the tree in cryptocurrencies.
On Thursday, South Korea's Justice Minister, Park Sang-ki, temporarily sent global bitcoin prices down and virtual coin markets in turmoil when he reportedly said regulators were preparing legislation to ban cryptocurrency trading. Later that same day, the South Korean Ministry of Strategy and Finance, one of the most important members of the South Korean government's task force for cryptocurrency regulation, came forward and said their department does not agree with that with the premature statement from the Ministry of Justice on a potential trade ban for cryptocurrency.
Although the South Korean government says that cryptocurrency trading is nothing more than gambling, and they fear the industry leaves many citizens in the poor home, but their real concern is a loss of tax revenue. This is the same concern that every government has.
China has become one of & # 39; s largest sources of cryptocurrency mining in the world, but it is now rumored that the government is investigating the regulation of the electrical current used by mine computers. More than 80% of the electrical power that Bitcoin is currently extracted comes from China. By closing miners, the government would make it more difficult for Bitcoin users to verify transactions. Mining activities will be relocated, but China is particularly attractive due to the very low electricity and land costs. If China continues this threat, there will be a temporary loss of mine capacity, which would cause Bitcoin users to see longer timers and higher transaction verification costs.
This wild ride continues and, like the internet boom, we will see some big winners, and eventually some big losers. Also, similar to the internet tree, or the uranium tree, it is those who get in early that will flourish, while the massive investors always appear at the end and buy at the top.