This is a question that is asked frequently What is the best way to choose the best cryptocurrency to invest in? Aren’t they identical?
It is not a secret that Bitcoin has dominated the largest portion of the cryptocurrency (CC) market and this is in large part because of its FAME. It’s similar to the current situation in the politics of nations around the globe, where a candidate is able to win the majority of votes on the basis of FAME and not on demonstrated abilities or qualifications to run a country. Bitcoin is the leader in the market and continues to make nearly all the headlines in the market. The FAME does not mean it is the best choice for the job. In fact, dennisloos.de it is well-known that Bitcoin has its own limitations and challenges which need to be addressed However, there is a lack of consensus among the Bitcoin community about how to solve the issues. As the issues get worse the chances are endless for developers to create new coins to address specific circumstances, and thus differentiate them from the aforementioned 1300 other coins that are in the market. Let’s take a look at two Bitcoin competitors and see the ways they differ from Bitcoin and one another:
Ethereum (ETH) Ethereum (ETH) – Ethereum coin is also known as ETHER. The major difference with Bitcoin in that Ethereum makes use of “smart contracts” which are accounts that are held that are stored on the Ethereum blockchain. Smart Contracts are created by their creators and can communicate in conjunction with different contracts. They can take decisions, keep data and even send ETHER to other people. The execution and the services they provide are provided via the Ethereum network and are far beyond what Bitcoin and other networks of blockchain could perform. Smart Contracts could act as an self-governing agent, following your rules and instructions for spending money and initiating additional transactions on Ethereum. Ethereum network.
Ripple (XRP) – This currency as well as the Ripple network have distinct characteristics that make it more than a mere digital currency, like Bitcoin. Ripple has come up with its own Ripple Transaction Protocol (RTXP) which is a robust financial tool that permits exchanges through the Ripple network to transfer funds fast and effectively. The principle behind the protocol is to put money into “gateways” where only those who know the password will be able to gain access to the funds. For financial institutions , this opens many possibilities as it makes cross-border payments easier as well as reduces costs. It also ensures transparency and security. All of this is done through innovative and clever utilization of blockchain technology.
The mainstream media has been covering the market with news breaking reports almost every single day, but they are not very deep in their reports… they’re mostly headlines that are dramatic.
This is the Wild West show continues…
The five stocks that are crypto/blockchain favorites are up by an average of 109 percent from December 11-17. The wild swings continue to be seen with every day gyrations. Yesterday, we had South Korea and China the latest to attempt to take down the cryptocurrency boom.
On Thursday the justice minister of South Korea Park Sang-ki caused the world’s bitcoin prices down and the virtual coin market in turmoil after he stated that regulators were in the process of drafting legislation to prohibit trading in cryptocurrency. On the same day the South Korea Ministry of Strategy and Finance is among the major members that make up the South Korean government’s cryptocurrency regulation task force, made a statement and declared that their department is not in agreement with the unfounded announcement by the Ministry of Justice about a possible ban on trading in cryptocurrency.
Although the South Korean government says cryptocurrency trading is nothing more than a form of gambling and is worried that the industry could leave many people in poverty house, their primary concern is the reduction in tax revenues. This is the same worry every government faces.
China has become one of the biggest source of mining cryptocurrency. But it is now believed that the government to be contemplating how to regulate the power source used by mining machines. More than 80% of the electrical power used to create Bitcoin currently is sourced from China. By shutting down miners the government could make it difficult to Bitcoin users to validate transactions. Mining operations could shift to different locations and China is especially attractive because of the low cost of cost of electricity and land. If China implements the threat of a resurgence, then there would be a temporary decrease in mining capacity. This would cause Bitcoin users experiencing longer wait times and more expensive fees for transaction verification.
The roller coaster ride will not stop as did that of the internet boom, we’ll be able to see big winners and then, eventually, a few big losers. Like the internet boom also known as the Urea boom it’s those who get early in the game who are likely to reap rewards as the masses always appear in the final moments, purchasing at the top.