Here’s a frequently asked question: How do I choose which currency to invest in – aren’t they the same?
There is no doubt that Bitcoin has taken over the lion’s share of the cryptocurrency (CC) market, and this is largely due to FAME. This phenomenon is similar to what happens in national politics around the world, where a candidate captures a majority of votes based on FAME, rather than a proven ability or ability to govern a nation. Bitcoin is a pioneer in this market space and continues to gather almost all market holders. This FAME does not mean that it is perfect for work, and it is well known that Bitcoin has its limitations and problems to be solved, however, there is disagreement in the world of Bitcoin about the best way to solve problems. As the problems escalate, there is a constant opportunity for developers to launch new coins that address specific situations and thus differentiate them from the other 1300 coins in this market space. Let’s look at the two opponents of Bitcoin and see how they differ from Bitcoin and from each other:
Ethereum (ETH) – The Ethereum coin is known as ETHER. The main difference with Bitcoin is that Ethereum uses “smart contracts”, which are objects with Ethereum blockchain accounts. 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 Ethereum networks, all of which are above what Bitcoin or any other blockchain network can do. Smart Contracts can act as your standalone agent, spending money following your instructions and rules and initiating other transactions on the Ethereum network.
Ripple (XRP) – This coin and Ripple network have special features that make it much more than a digital currency like Bitcoin. Ripple has developed the Ripple Transaction Protocol (RTXP), a powerful financial tool that allows you to transfer funds quickly and efficiently through Ripple network exchanges. The basic idea is to put money into “passwords” where only those who know the password can unlock funds. This opens up great opportunities for financial institutions, facilitating cross-border payments, reducing costs and providing transparency and security. All of this is done with the creative and intelligent use of blockchain technology.
The mainstream media is covering this market with the latest news almost every day, however, their stories have little depth … most of them are just dramatic headlines.
Wild West shows continue …
An average of 5 crypto / blockchain shares are selected % 109 since December 11/17. The wild doubts continue to revolve on a daily basis. Yesterday we had South Korea and China as the last to try to get rid of the cryptocurrency boom.
On Thursday, South Korean Justice Minister Park Sang-ki said global bitcoin prices were temporarily declining and virtual currency markets were shaken when regulators said they were preparing legislation to ban cryptocurrency trading. Later that day, the South Korean Ministry of Strategy and Finance, one of the main members of the South Korean government’s cryptocurrency regulation working group, came out and told its department. disagrees Early statements by the Ministry of Justice about the ban on cryptocurrency trading.
Although the South Korean government says it is just a cryptocurrency trading game, and they are concerned that the industry will leave many citizens in the homes of the poor, their real concern is to lose tax revenue. This is the same concern that all governments have.
China has become one of the world’s largest sources of cryptocurrency mining, but now the government is said to be regulating the electricity used by mining computers. Today, more than 80% of Bitcoin’s electricity comes from China. By shutting down miners, the government would find it more difficult for Bitcoin users to verify transactions. Mining operations will be relocated, but China is particularly attractive due to its very low electricity and land costs. If China continues with this threat, there will be a temporary loss of mining capacity, which will see Bitcoin users see longer timers and higher transaction verification costs.
This wild ride will continue, and like the internet boom, we will see some big winners, and finally some big losers. Also, like the internet boom, or like the uranium boom, those who enter early will move forward, and massive investors always show up at the end, buying at the top.
Stay tuned!