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 piece or chip made incredible returns. “A rising tide floats all boats,” as the saying goes, and the end of 2017 was a deluge. The price increase created a positive feedback loop that attracted more and more capital into Crypto. Unfortunately, but inevitably, this galloping market leads to huge investments. Money was thrown indiscriminately into all sorts of dubious projects, many of which would fail.
In the current bearish environment, hype and greed have been replaced by critical appraisal and caution. Especially for those who have lost money, marketing promises, endless shillings and charismatic speeches are no longer enough. Well, the main reasons to buy or hold a coin are again paramount.
Key Factors in Cryptocurrency Valuation-
There are some factors that tend to dominate the hype and price pumps, at least in the long run:
Although a cryptocurrency technology or ICO business plan may seem surprising without users, they are simply dead projects. It is often forgotten that broad acceptance is a fundamental characteristic of money. In fact, it is estimated that over 90% of Bitcoin’s value is a function of the number of users.
While the adoption of fiat is mandated by the state, the adoption of cryptography is purely voluntary. Many factors play into the decision to accept a coin, but perhaps the most important consideration is the likelihood that others will accept the coin.
Decentralization is essential to the I push model of a true cryptocurrency. Without decentralization, we have a bit closer to a Ponzi scheme than a true cryptocurrency. Trust in individuals or institutions is the problem that cryptocurrency tries to solve.
If dismantling a coin or a central controller can change the transaction record, it calls into question its basic security. The same goes for parts with unproven code 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 is.
Valid coins strive to improve their technology, but not at the expense of safety. True technological progress is rare because it requires a lot of expertise and also wisdom. While there are always fresh ideas that can be screwed up, if this makes vulnerabilities or critics 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 not receiving updates that address important issues, it may be a sign that the developers are low on ideas or motivation.
The economic incentives inherent in currency are easier for the average person to perceive. If a coin has had a large pre-mining or ICO (initial part offering), the team has held 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 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 reassess and rebalance a crypto portfolio. Based on their solid foundation, here are five pieces that I think are worth holding on to or perhaps buying at their current depressed prices (which, just a warning, may drop lower).
#1. Bitcoin (because of its decentralization)
Number one belongs to Bitcoin (BTC), which remains the market leader in all categories. Bitcoin has the highest price, the widest assumption, the most security (due to the phenomenal power consumption of Bitcoin mining), the most famous brand identity (the forks have tried to be relevant), and the most from development is active and rational. It is also the only piece to date that has been introduced to 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 parts is highly correlated with the performance of Bitcoin. My personal expectation is that the gap between Bitcoin and most if not all other parts will widen.
Bitcoin has several promising innovations that will soon be installed as additional layers or soft forks. Examples are the Flash (LN) system, wood, Schnorr signatures Mimblewimbleund many more.
Specifically, we plan to open up a new range of applications for Bitcoin as it enables large-scale microtransactions and instant and secure payouts. LN is increasingly stable as users test their various options with real bitcoins. As it becomes easier to use, it can be assumed that it will greatly benefit from the adoption of Bitcoin.
#2. Litecoin (due to its sustainability)
Litecoin (LTC) is a clone of Bitcoin with a different hash algorithm. Although Litecoin no longer has the anonymity technology of Bitcoin, incredible reports indicate that the adoption of Litecoin in the dark markets is now second only to bitcoin. Although it is a currency that I have much better suited to the role of acquiring illegal goods and services, perhaps this is presented as a result of Litecoin’s longevity: It was launched in late 2011.
Another factor in Litecoin’s favor is that it integrates the Bitcoin SegWit technology, which means that Litecoin is LN-ready. Litecoin could benefit from an atomic chain exchange. In other words, secure peer-to-peer trading of currencies without the involvement of third parties (i.e. exchanges). 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 big problems right now. First of all, governments crack down on ICOs, and rightly so: many have turned out to be either fraudulent or bankrupt. Since most icos run on the Ethereum network as an ERC token 20, the ICO craze has brought a lot of value to Ethereum in recent years. If proper rules are taken to protect investors, Ethereum project scams can claim some legitimacy as a crowdfunding platform.
The second major problem facing Ethereum is the delayed transition to a new hybrid battery operation and detection system. The Ethereum mining GPU is currently profitable, but Bitmain just announced an Ethereum ASIC minor, which will likely have an impact on GPU miners’ bottom lines. Whether this will change the POW and how successful that change will be remains to be seen.
If Ethereum manages to survive, these two main issues – regulation and mining – will show great resilience. Otherwise, there are several competing currencies that follow its shadows, such as Ethereum Classic (etc.), Cardano (ADA), and EOS.
#4. Monero (because of its anonymity)
Although its adoption in the dark markets is not all that one might expect, I (XMR) remains the privacy of the Prime Minister. Its reputation and market cap are still above those of its rivals – and for good reason.
Monero’s code requires less trust than Zcash’s “loyal” key ceremony and had an honest 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 part. A significant drop in hashing speed is due to the new version constantly reporting against the ASIC. This could also be an opportunity for GPUs and even secondary 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 incubation platform Ethereum chain 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 opinions from users, experts in the field about the practice and application of derived ideas.
Innovators’ ideas are supported as the NES in Smart Contract format will be signed between the expert platform and the client if the client’s business idea is before the committee for review and registration on the platform. The idea will not be published to all users of the chain’s public platform, but only to selected members of the target community who are willing to sign the Smart contract to keep the idea confidential.