The crypto show of the Wild West continues

Here’s a question that often arises: How do I choose which cryptocurrency to invest in – aren’t they all the same?

There is no doubt that bitcoin has taken the lion’s share of the cryptocurrency (CC) market, and this is largely due to its fame. This phenomenon is very similar to what happens in national politics around the world, where a candidate captures the majority of votes based on FAME, rather than some proven ability or qualifications to run a nation. Bitcoin is the pioneer in this market space and continues to collect almost all titles on the market. This FAME does not mean that it is ideal for work and it is quite well known that bitcoin has limitations and problems that need to be solved, but in the world of bitcoin there is disagreement on how best to solve the problems. As the problems increase, there is a constant opportunity for developers to initiate new coins that deal with specific situations and thus differ from approximately 1,300 other coins in this market space. Let’s look at two bitcoin rivals and explore how they differ from bitcoin and from each other:

Ethereum (ETH) – The Ethereum coin is known as ETHER. The main difference from Bitcoin is that Ethereum uses “smart contracts”, which are objects that hold accounts in the Ethereum blockchain. Smart contracts are defined by their creators and they can interact with other contracts, make decisions, store data and send ETHER to others. The performance and services they offer are provided by the Ethereum network, all of which is beyond what bitcoin or any other blockchain network can do. Smart contracts can act as your stand-alone agent, obeying your instructions and rules for spending currency and initiating other transactions on the Ethereum network.

Ripple (XRP) – This coin and the Ripple network also have unique features that make it much more than just a digital currency like bitcoin. Ripple has developed the Ripple Transaction Protocol (RTXP), a powerful financial instrument that allows exchanges on the Ripple network to transfer funds quickly and efficiently. The basic idea is to put money in “gateways”, where only those who know the password can unlock the funds. For financial institutions, this opens up huge opportunities, as it simplifies cross-border payments, reduces costs and provides transparency and security. All this is done with creative and intelligent use of blockchain technology.

The mainstream media cover this market with news almost every day, but there is a small depth in their stories … they are mostly just dramatic headlines.

The show of the Wild West continues …

The selected 5 shares for crypto / blockchain are on average up 109% from 11/17 December. The wild swings continue with daily spins. Yesterday we had the last South Korea and China trying to bring down the boom in cryptocurrencies.

On Thursday, South Korean Justice Minister Park Sang-ki sent a temporary drop in global bitcoin prices and virtual coin markets in a turmoil as he said regulators were drafting legislation to ban cryptocurrency trading. Later that day, South Korea’s Ministry of Strategy and Finance, one of the main member agencies of the South Korean government’s cryptocurrency regulation task force, came out and said their department he does not agree with the premature statement of the Ministry of Justice for a potential ban on cryptocurrency trading.

While the South Korean government says cryptocurrency trading is nothing more than gambling and worries that the industry will leave many citizens in poor houses, their real concern is the loss of tax revenue. This is the same concern that every government has.

China has become one of the world’s largest sources of cryptocurrency digging, but it is now rumored that the government is seeking to regulate the electricity used by computers to dig. Over 80% of the electricity for bitcoin mining today comes from China. By excluding miners, the government would make it difficult for bitcoin users to verify transactions. Mining operations will be relocated, but China is particularly attractive due to very low electricity and land costs. If China follows this threat, there will be a temporary loss of digging capacity, which will lead bitcoin users to see longer timers and higher transaction verification costs.

This wild journey will continue and like the internet boom, we will see some big winners and eventually some big losers. Also, like the internet boom or the uranium boom, those who enter earlier will prosper, while mass investors always show up at the end, buying on top.

Stay on the line!