This is a question that is asked frequently How do I decide which cryptocurrency currency to invest in? Aren’t they identical?
It is not a secret that Bitcoin has taken the biggest part of the cryptocurrency (CC) market which is mostly because of its FAME. dennisloos.de It’s similar to the current situation in politics across 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 most of the headlines in the market. The FAME does not mean it is the best choice for the job. Moreover, it is well-known that Bitcoin has its own limitations and challenges which need to be addressed However, there is a lack of consensus within the Bitcoin world about the best way to solve the issues. As the issues get worse the chances are endless for developers to create new coins that address specific issues, and therefore differentiate them from the roughly 1300 other coins that are in the market. Let’s examine two Bitcoin competitors and see what they have in common with Bitcoin and one another:
Ethereum (ETH) Ethereum (ETH) – Ethereum coin is also known as ETHER. The primary difference between Ethereum and Bitcoin in that Ethereum makes use of “smart contracts” which are accounts held in the Ethereum blockchain. Smart Contracts are created by their creators and are able to interact to other contract types, take decisions, keep data and transfer ETHER to other users. The execution and the services they provide are provided through the Ethereum network that is more than what Bitcoin nor any blockchain could accomplish. Smart Contracts could act as an independent agent, executing your rules and instructions to spend money and initiate 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 similar to Bitcoin. Ripple has created their own Ripple Transaction Protocol (RTXP) an extremely highly efficient financial tool that allows exchanges within the Ripple network to transfer funds swiftly and effectively. The principle behind the protocol is to store money in “gateways” where only those who know the password will be able to gain access to the funds. Financial institutions can open the door to a myriad of possibilities, since it facilitates cross-border transactions decreases costs and offers security and transparency. All of this is done through the creative and innovative use of blockchain technology.
The mainstream media has been covering the market with news breaking reports almost every single day, but there is no substance to the stories… They are mostly headlines that are dramatic.
This is the Wild West show continues…
The five top crypto/blockchain stocks have risen an average of 109 percent since the 11th of December. The wild swings are continuing with every day gyrations. Yesterday, we had South Korea and China the most recent to attempt to bring down the cryptocurrency boom.
On Thursday the justice minister from South Korea Park Sang-ki caused the world’s bitcoin prices down 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. The same day the South Korea Ministry of Strategy and Finance which is one of the principal members within the South Korean government’s cryptocurrency regulation task force, made a statement and stated that the department is not in agreement with the unfounded declaration 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 millions of people living in poverty house, their primary worry is the reduction in tax revenues. It’s the same issue that every government is faced with.
China has grown to become one of the largest source of mining cryptocurrency. But it is now believed that the government to be considering controlling the electricity utilized by mining computers. The majority of electricity used to create Bitcoin currently is sourced from China. By shutting down miners the government will make it difficult to Bitcoin users to validate transactions. Mining operations are likely to shift to different locations and China is especially attractive because of the low cost of energy and land cost. If China implements threats to stop mining, it would be a temporary reduction in mining capacity. This would lead to Bitcoin users having longer wait times and more expensive cost for verification of transactions.
The wild ride is not over as did that of the internet boom, we’ll be able to see big winners and, eventually, some major losers. Similar to the boom in internet technology, as well as the boom in uranium it is those who are early in the game who are likely to reap rewards and the majority of investors always arrive in the final moments, purchasing at the top.