The Wild West cryptographic show continues


Here’s a question that often comes up: how do I choose which cryptocurrency to invest in, aren’t they all the same?

There is no doubt that Bitcoin has captured most of the cryptocurrency (CC) market, and this is largely due to its FAME. This phenomenon is very similar to what happens in national politics around the world, where a candidate captures the majority of votes based on FAME, rather than any demonstrated skill or qualification to govern a nation. Bitcoin is the pioneer in this market space and continues to gain almost all market holders. This FAME is not meant to be perfect for the job, and it is well known that Bitcoin has limitations and problems that need to be solved, but there is disagreement in the Bitcoin world about how best to solve the problems. As problems are diluted, there is an ongoing opportunity for developers to launch new currencies that address specific situations and therefore stand out from the approximately 1,300 other currencies in this market space. Let’s look at two Bitcoin rivals and explore how they differ from Bitcoin and each other:

Ethereum (ETH) – The Ethereum currency is known as ETHER. The main difference with Bitcoin is that Ethereum uses “smart contracts”, which are accountable objects in the Ethereum blockchain. Smart contracts are defined by their creators and can interact with other contracts, make decisions, store data, and send ETHER to others. The execution and 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 your standalone agent, following your instructions and rules for spending money and initiating other transactions on the Ethereum network.

Ripple (XRP) – This currency and the Ripple network also have unique features that make it much more than a simple digital currency like Bitcoin. Ripple has developed the Ripple Transaction Protocol (RTXP), a powerful financial tool that allows Ripple network exchanges to transfer funds quickly and efficiently. The basic idea is to place money on “gateways” where only those who know the password can unlock the funds. For financial institutions, this opens up huge possibilities, as it simplifies cross-border payments, reduces costs and provides transparency and security. All this is done with a smart and creative use of blockchain technology.

Conventional media cover this market with breaking news almost every day, however, their stories have little depth … they are mostly dramatic headlines.

The Wild West show continues …

5-action blockchain cryptography / block selections increase on average 109% since 11/17 December. Wild swings continue with daily twists. Yesterday we had South Korea and China the latest developments in trying to bring down the cryptocurrency boom.

On Thursday, South Korean Justice Minister Park Sang-ki sent global bitcoin prices plummeting and virtual currency markets in turmoil when regulators were told they were preparing legislation to ban trade in cryptocurrencies. Later that day, South Korea’s Ministry of Strategy and Finance, one of the leading member bodies of the South Korean government’s cryptocurrency regulation working group, came out and said its department does not agree with the premature declaration of the Ministry of Justice on a possible ban on cryptocurrency trading.

While the South Korean government says the cryptocurrency trade is nothing more than gambling, and is concerned that the industry will leave many citizens in the poor house, their real concern is the loss of tax revenue. This is the same concern that every government has.

China has become one of the world’s largest sources of cryptocurrency mining, but it is now rumored that the government is studying the regulation of the electricity used by mining computers. More than 80% of the electricity to exploit Bitcoin today comes from China. By closing the miners, the government will make it difficult for Bitcoin users to check transactions. Mining operations will be relocated to other places, but China is particularly attractive due to the very low costs of electricity and land. If China continues with this threat, there will be a temporary loss of mining capacity, which would cause Bitcoin users to see longer timers and higher costs for verifying transactions.

This wild journey will continue and, like the internet boom, we will see some big winners and finally some big losers. Also, similarly to the Internet boom, or the uranium boom, those who arrive early will thrive, while mass investors always show up at the end and buy at the top.

Stay tuned!