This is a question that is asked frequently How do I decide the best cryptocurrency to invest in? Aren’t they identical?
There’s no doubt that Bitcoin has taken the biggest part of the cryptocurrency (CC) market and this is in large part because of its FAME. dennisloos.de The phenomenon is similar to the way that it is occurring in the politics of nations around the globe, where candidate gets the bulk of votes on the basis of FAME instead of any established abilities or qualifications required to run a country. Bitcoin is the leader in this space, and continues to be the subject of nearly all the attention in the markets. The FAME does not mean it is the best choice for the job. In fact, it is well-known that Bitcoin has its limitations and issues which need to be addressed There is a lack of consensus within the Bitcoin community about how to address the issues. As the issues get worse there is a constant opportunity for developers to develop new coins to address specific circumstances, and thus differentiate them from the roughly 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 also from each other
Ethereum (ETH) Ethereum (ETH) – Ethereum coin is referred to as ETHER. The primary difference between Ethereum and Bitcoin in that Ethereum utilizes “smart contracts” which are accounts held that are stored on the Ethereum blockchain. Smart Contracts are designed by their creators, and can communicate to other contract types, take decisions, store information, 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 the rules and instructions you provide to spend money and initiate additional transactions on Ethereum. Ethereum network.
Ripple (XRP) – This currency as well as the Ripple network also come with unique 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 highly efficient financial tool that allows exchanges through the Ripple network to transfer funds fast and effectively. The idea behind it is to put money into “gateways” where only those who know the password will be able to access the funds. Financial institutions can open the door to a myriad of possibilities, since it makes cross-border payments easier decreases costs and ensures transparency and security. All this is accomplished through the creative and innovative use of blockchain technology.
The mainstream media covers the market with news breaking reports almost every single day, but they are not very deep in their reports… They are 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 since the 11th of December. The wild swings are continuing with every day fluctuations. Yesterday, we saw South Korea and China the most recent to attempt to bring down the cryptocurrencies boom.
On Thursday the justice minister from South Korea Park Sang-ki caused the global bitcoin price plummeting and the market for virtual coins to turmoil after he reportedly stated that regulators were in the process of drafting laws to stop trading in cryptocurrency. On the same day the South Korea Ministry of Strategy and Finance which is one of the major members that make up the South Korean government’s cryptocurrency regulation task force, made a statement and stated that the department is not in agreement with the unfounded announcement from 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 market will put many people in poverty home, their main concern is the decrease in revenue from taxes. This is the same worry that every government is faced with.
China has become one of the biggest suppliers of crypto mining. But there is speculation that the Chinese government may to be considering how to regulate the power source utilized by mining computers. The majority of electricity used to mining Bitcoin currently is generated in China. By shutting down miners the government could make it more difficult to Bitcoin users to validate transactions. Mining operations are likely to shift to different places however, China is especially attractive because of its low energy and land cost. If China implements the threat of a resurgence, then there could be a temporary decrease in mining capacity. This would cause Bitcoin users experiencing longer timers and increased fees for transaction verification.
The roller coaster ride will not stop similar to that of the internet boom, we’ll witness some major winners and then, eventually, a few big losers. Similar to the internet boom also known as the Urea boom it is those who are early to participate who will reap the rewards and the majority of investors always appear in the final moments, purchasing at the top.