Here's a question that comes up often: how to choose the cryptocurrency to invest in – isn't it the same?
There is no doubt that Bitcoin has conquered the lion's share of the cryptocurrency (CC) market, and this is largely due to its fame. This phenomenon is very similar to what is happening in national politics around the world, where a candidate obtains the majority of votes on the basis of fame, rather than proven abilities or qualifications to govern a nation. Bitcoin is the pioneer in this market space and continues to collect almost all of the securities in the market. This FAME doesn't mean it's perfect for the job, and it's fairly well known that Bitcoin has limits and issues that need to be resolved, however, there is disagreement in the Bitcoin world on the best way. to solve the problems. As the problems get worse, developers have the ability to launch new parts that respond to particular situations and thereby distinguish themselves from some 1300 other parts in this market. Let's look at two Bitcoin rivals and explore how they differ from Bitcoin and one from the other:
Ethereum (ETH) – The Ethereum part is called ETHER. The main difference from Bitcoin is that Ethereum uses "smart contracts" which are objects with accounts on 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 execution and the services they offer are provided by the Ethereum network, all beyond what Bitcoin or any other blockchain network can do. Smart contracts can act as a standalone agent, obeying your instructions and rules for spending money 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 tool 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 enormous possibilities, as it simplifies cross-border payments, reduces costs and offers transparency and security. All of this is done with creative and intelligent use of blockchain technology.
The mainstream media cover this market with newspaper articles almost every day, however, their story is not very deep … for the most part they are only dramatic titles.
The Far West show continues …
The 5 crypto / blockchain values choose an average of 109% since December 11/17. The wild oscillations continue with daily gyrations. Yesterday, South Korea and China were the last to try to curb the rise of cryptocurrencies.
South Korean justice minister Park Sang-ki on Thursday temporarily plunged global bitcoin prices and virtual coin markets when he said regulators were preparing legislation to ban trading cryptocurrencies. Later that same day, the South Korean Ministry of Strategy and Finance, one of the main agencies members of the South Korean government's cryptocurrency regulatory task force, came out and said that his department disagrees with the premature statement from the Ministry of Justice about a possible ban on cryptocurrency trading.
While the South Korean government claims that the cryptocurrency trade is nothing more than games of chance and that it fears that the industry will leave many citizens in the poor house , their real concern is the loss of tax revenue. It is the same concern of every government.
China has become one of the largest sources of cryptocurrency mining in the world, but today rumor has it that the government is seeking to regulate the electrical energy used by them. mining computers. Today, more than 80% of the electrical energy used to mine Bitcoin comes from China. By shutting down the miners, the government would make it more difficult for Bitcoin users to verify transactions. Mining operations will move to other places, but China is particularly attractive due to the very low costs of electricity and land. If China responds to this threat, there will be a temporary loss of mining capacity, which would cause Bitcoin users longer delays and higher costs for transaction verification.
This crazy race will continue and, just like the internet boom, we will see big winners and possibly big losers. Likewise, as with the internet boom or the uranium boom, it is those who arrive early who will prosper, while mass investors always show up at the end, buying at the top.