Here is a question that comes up frequently: How do I choose which crypto currency to spend in – aren’t they all the same?
There is no doubt that Bitcoin has captured the lion’s share of the crypto currency (CC) market, and that’s largely because of its FAME. This phenomenon is much like what’s happening in national politics across the world, in which a candidate captures the vast majority of votes based on FAME, rather than any proven abilities or qualifications to govern a country. Bitcoin is the leader in this market space and continues to garner virtually all of the market headlines. This FAME does not mean it is perfect for the job, and it is fairly well-known that Bitcoin has limitations and problems which have to be solved, but there’s debate in the Bitcoin globe on how best to solve the problems. Since the issues fester, there is ongoing chance for developers to initiate new coins which address specific situations, and so differentiate themselves from the roughly 1300 additional coins in this market area. Let us look at two Bitcoin competitions and research how they differ in Bitcoin, and from each other:
Ethereum (ETH) – The Ethereum coin is called ETHER. The main difference from Bitcoin is that Ethereum uses”smart contracts” that are account holding items on the Ethereum blockchain. Smart Contracts are defined by their founders and they’re able to interact with other contracts, make decisions, store data, and ship ETHER to others. The implementation and services they supply are offered from the Ethereum network, all of which is beyond what the Bitcoin or any other blockchain network can perform. Smart Contracts can act as your autonomous agent, obeying your instructions and rules for spending money and initiating other transactions on the Ethereum network.
Ripple (XRP) – This coin and the Ripple network also have unique characteristics which make it more than just a digital money like Bitcoin. Ripple has developed the Ripple Transaction Protocol (RTXP), a powerful financial tool that allows exchanges on the Ripple network to move funds quickly and economically. The basic idea would be to place money in”gateways” where only people who know the password can unlock the money. For fiscal institutions this opens up huge possibilities, as it simplifies cross-border payments, reduces prices, and provides transparency and security. This is done with innovative and smart use of blockchain technology.
The mainstream media is covering this marketplace with breaking news stories almost every single day, but there’s very little depth to their stories… they are mostly only dramatic headlines.
The Wild West show continues…
The 5 shares crypto/blockchain picks are up an average of 109 percent since December 11/17. The wild swings persist with daily gyrations. Yesterday we’d South Korea and China the latest to attempt to take down the boom in cryptocurrencies.
On Thursday, South Korea’s justice minister, Park Sang-ki, delivered worldwide bitcoin prices briefly plummeting and digital coin markets into turmoil when he reportedly said regulators were planning legislation to ban cryptocurrency trading.
While the South Korean government maintains cryptocurrency trading is merely gambling, and they are concerned that the industry will leave many taxpayers in the poor house, their real concern is that a loss of taxation revenue. This is the same concern each government has.
China has become one of the world’s most significant sources of cryptocurrency mining, but now the government is rumoured to be considering regulating the electrical power used from the mining machines. More than 80% of the electric power to mine Bitcoin today comes from China. By shutting down miners, the government would make it harder for Bitcoin consumers to confirm transactions. Mining operations will move to other places, but China is particularly attractive because of very low power and land costs. If China follows through with this danger, there’ll be a temporary loss of mining capability, which would result in Bitcoin users seeing longer timers and greater costs for trade verification.