The Wild West crypto show continues

Here’s a frequently asked question: How do I choose which cryptocurrency to invest in – aren’t they all the same?

There is no doubt that Bitcoin has taken the lion’s share of the cryptocurrency (CC) market, and that’s largely thanks to its FAME. This phenomenon is similar to what is happening in national politics around the world, where a candidate takes the majority of votes based on FAME, instead of any proven abilities or qualifications to run the nation. Bitcoin is a pioneer in this market space and continues to collect almost all titles in the market. This FAME does not mean that it is perfect for business, and it is quite well known that Bitcoin has limitations and problems that need to be solved, however, in the world of bitcoin there is disagreement about how best to solve problems. As the problems intensify, developers are constantly given the opportunity to initiate new coins that deal with specific situations and thus differentiate themselves from approximately 1,300 other coins in this market space. Let’s look at two Bitcoin rivals and explore how they differ from Bitcoin and from each other:

Ethereum (ETH) – The Ethereum coin is known as ETHER. The main difference from Bitcoin is that Ethereum uses “smart contracts” which are objects that hold accounts on the Ethereum blockchain. Smart contracts are defined by their creators and they can communicate with other contracts, make decisions, store data and send ETHER to others. The execution and services they offer are provided by the Ethereum network, and all this is beyond what Bitcoin or any other blockchain network can do. Smart contracts can act as your autonomous agent, following your instructions and rules for spending currency and initiating other transactions on the Ethereum network.

Ripple (XRP) – This coin and the Ripple network also have unique features that make it much more than just a digital currency like Bitcoin. Ripple has developed the Ripple Transaction Protocol (RTXP), a powerful financial tool that allows exchanges on the Ripple network to transfer funds quickly and efficiently. The basic idea is to place money in “gateways” where funds can only be unlocked by those who know the password. This opens up enormous opportunities for financial institutions, as it simplifies cross-border payments, reduces costs and provides transparency and security. All this is achieved through creative and intelligent use of blockchain technology.

The mainstream media covers this market with breaking news almost every day, however, there is little detail in their stories … mostly it’s just dramatic headlines.

The show Wild West continues …

The selection of 5 crypto / blockchain stocks is higher on average 109% from 11./17. December. Wild swings continue with daily spins. Yesterday we had the last South Korea and China trying to bring down the cryptocurrency boom.

On Thursday, South Korean Justice Minister Park Sang-ki sent global bitcoin prices temporarily down and into the virtual coin market into turmoil when he reportedly said regulators were preparing laws banning cryptocurrency trading. Later that day, the South Korean Ministry of Strategy and Finance, one of the main member agencies of the South Korean Working Group on Cryptocurrency Regulation, came out and said that their department disagrees a premature statement by the Ministry of Justice on a potential ban on cryptocurrency trading.

Although the South Korean government says cryptocurrency trading is nothing more than gambling and they are worried that the industry will leave many citizens in a poor house, their real concern is the loss of tax revenues. It is the same concern that every government has.

China has grown into one of the world’s largest sources of cryptocurrency mining, but it is now rumored that the government is seeking regulation of the electricity used by mining computers. Over 80% of bitcoin mining electricity today comes from China. By shutting down miners, the government would make it harder for Bitcoin users to verify transactions. Mining operations will be relocated, but China is particularly attractive due to very low electricity and land costs. If China continues to deal with this threat, there will be a temporary loss of mining capacity, which would result in Bitcoin users seeing longer time and higher transaction verification costs.

This wild ride will continue, and much like the boom of the internet, we will see some big winners and eventually big losers. Also, similar to the internet boom or growth of uranium, those who enter early will prosper, while mass investors always show up at the end, buying at the top.

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