Important: This position should not be taken as an investment council. The author focuses on the best coins in terms of actual use and acceptance, not in terms of finance or investment.
In 2017, cryptographic markets set a new standard for simple profits. Almost every piece or chip has an incredible income. As they say, “A rising tide throws all boats,” and the end of 2017 was a storm. The rise in prices has created a period of positive feedback that has attracted more capital to Crypto. Unfortunately, this fast market inevitably leads to large investments. Many were thrown without any money in any dubious projects that will not bear fruit.
In today’s bear environment, whimsy and greed are replaced by a critical appraisal and caution. Marketing promises, endless shillings and charismatic oratorios are no longer enough, especially for those who lose money. The main reason to buy or hold a coin is again Paramount.
The main factors in the valuation of cryptocurrency
At least in the long run, there are some factors that tend to conquer noise and price pumps:
While cryptocurrency or ICO business plan technology may seem surprising without users, they are simply dead projects. It is often forgotten that widespread acceptance is an important feature of money. In fact, it is estimated that more than 90% of the value of Bitcoin is a function of the number of users.
Although the adoption of Fiat is commissioned by the state, the adoption of cryptography is completely voluntary. Many factors play a role in the decision to accept a coin, but perhaps the most important issue is the likelihood that others will accept the coin.
Decentralization is important because I am a model of a real cryptocurrency. We are a little closer to a Ponzi scheme without decentralization than a real cryptocurrency. The problem that cryptocurrency is trying to solve is trust in individuals or institutions.
If the removal of a coin or central controller can change the operating record, it calls into question its underlying security. The same applies to parts with code that has not been thoroughly tested for years. The more you can be sure that the code will work as described, regardless of human influence, the more secure a coin will be.
Reliable money is trying to develop technology, but not at the expense of security. True technological development is rare because it requires a lot of experience and wisdom. Although there are always fresh ideas that can strike, doing so misses the point if the original purpose of a coin causes weakness or criticism.
Innovation can be a difficult factor to evaluate, especially for non-technical users. However, if a currency code is stagnant or does not receive updates related to important issues, it may be a sign that developers are weak in terms of ideas or motivation.
The economic incentives inherent in a currency are easier for the average person to understand. If a coin has a large previous culture or an ICO (initial part offer), if the team occupies a significant portion of the chips, it is clear that the main motivation is profit. You play the game and enrich yourself by getting what the team offers. In return, make sure you give a material and reliable value.
5 cryptocurrencies to be purchased in 2018
There has never been a better time to re-evaluate and balance the cryptographic portfolio. Based on its solid foundations, the five pieces I feel are worth sticking to at current depressing prices, or perhaps worth buying (just a warning may go down).
# 1. Bitcoin (due to decentralization)
Number one refers to Bitcoin (BTC), which remains the market leader in all categories. Bitcoin is active and rational for the highest price, the broadest assumption, much of the security (due to the phenomenal energy consumption of Bitcoin mining), the most popular brand identity (hooks tried to match), and much of the development. It is also the only work represented in the traditional markets in the form of Bitcoin futures on the American CME and CBOE.
Bitcoin remains the main engine; The performance of all other parts is very much related to the performance of Bitcoin. My personal expectation is that the gap between Bitcoin and other parts will widen.
In the pipeline, Bitcoin has several promising innovations that will soon be installed as additional layers or soft forks. Examples are more than Flash system (LN), wood, Schnorr signatures Mimblewimbleund.
In particular, we plan to open a new application range for Bitcoin, as it allows large-scale, microtransactions and instant and secure payments. LN is becoming more stable as users try different capabilities with real Bitcoin. As it becomes easier to use, it can be assumed that there will be great benefits from the adoption of Bitcoin.
# 2. Litecoin (due to stubbornness)
Litecoin (LTC) is a Bitcoin clone with a different hash algorithm. Although Litecoin no longer has Bitcoin anonymity technology, surprising news has shown that the adoption of Litecoin in the dark markets is now the second bitcoin. While it is a currency that I am more suited to the role of acquiring illicit goods and services, perhaps it manifests itself as a result of the longevity of Litecoin: launched in late 2011.
Another factor in favor of Litecoin is the integration of Bitcoin SegWit technology, which means that Litecoin was developed for LN. Litecoin can benefit from the exchange of atomic chains. In other words, secure peer-to-peer trading of currencies without the involvement of third parties (ie exchanges). Litecoin is in a good position to take advantage of the technical development of Bitcoin, as it largely synchronizes the code with Bitcoin.
# 3. Ethereum (according to smart contracts)
Ethereum (ETH) currently has some major problems. First, governments are fighting ICOs, and rightly so: many have turned out to be either fake or bankrupt. As the most ico ERC token 20 works on the Ethereum network, the ICO mania has brought a lot of value to Ethereum in recent years. If appropriate rules are followed to protect investors, Ethereum projects can require a certain legitimacy as a mass fund platform for fraud.
The second big problem with Ethereum is a new hybrid operation and a delayed transition to a battery detection system. The Ethereum mining GPU is currently profitable, but Bitmain has announced the Ethereum ASIC minor, which could affect the bottom lines of GPU miners. It remains to be seen whether this will change the captivity and how successful this change will be.
If Ethereum can get rid of these two big problems, regulation and mining will have shown great resilience. Otherwise, there are several competing currencies that follow their shadows, such as Ethereum Classic (vb), Cardano (ADA) and EOS.
# 4. Monero (because anonymous)
While not all are expected to be accepted in the dark markets, I (XMR) remains the Prime Minister’s privacy. Its popularity and market capitalization are still higher than its competitors, and for good reason.
The Monero code requires less trust in Zcash’s “loyal” key ceremony, and made a fair start, unlike Dash. The recent change in power to defeat the development of a small ASIC for Monero’s algorithm confirms the commitment of the mining decentralization unit. A significant decrease in the hash rate is due to the new version, which is constantly reported against the ASIC. This could be an opportunity for both GPUs and even smaller CPUs to return to me. The new version of Monero, 0.12, also covers other developments that show that Monero continues to grow along sensitive lines.
# 5. IPRONTO (A Decentralized Incubation Platform)
iPRONTO is an incubation platform for investors looking for a reliable and trustworthy platform to invest in new ideas, the Ethereum chain, and can get feedback from future innovators and experts in the field of application of ideas, who can present their ideas and get feedback from users.
If the Committee has a business idea to investigate and register the client on the platform, the views of the innovators are supported by the signing of the NES in the Smart Contract format between the expert platform and the client. The opinion will be published not for all users on the open platform of the chain, but only for selected target community members who want to sign a Smart Agreement to protect the privacy of the opinion.