Here's a frequently asked question: How do I choose the encrypted currency to invest – aren't they all the same?
There is no doubt that Bitcoin has recorded the lion's share of the cryptographic currency (CC) market, and this is largely due to FAME. This is very similar to what is happening in national policies around the world, where a candidate captures the majority of FAME-based votes, instead of proven skills or qualifications to govern a nation. Bitcoin is a pioneer in this market and continues to gather almost all market shares. This FAME does not mean it is perfect for the job and it is well known that Bitcoin has limitations and problems that need to be solved, however there is disagreement in the Bitcoin world on how best to solve problems. As problems wane, there are constant opportunities for developers to launch new currencies that address specific situations and thus stand out from the approximately 1300 other currencies in this market place. Let's look at two Bitcoin opponents and explore how they differ from Bitcoin and the other:
Ethereum (ETH) – The Ethereum currency is known as ETHER. The main difference from Bitcoin is that Ethereum uses "smart contracts" that are objects that hold the account in the Ethereum block. Smart conventions are defined by their creators and can interact with other conventions, make decisions, store data, and send ETHER to others. The execution and the services they provide are provided by the Ethereum network, which is beyond what Bitcoin or any other blockchain network can do. Smart contracts can act as your own agents, following your instructions and rules for using the currency and starting other transactions on the Ethereum network.
Injection (XRP) – This currency and the Ripple network also have unique features that make it much more than a digital currency like Bitcoin. Ripple has developed the Ripple Trading Protocol (RTXP), a powerful financial tool that enables exchanges on the Ripple network for fast and efficient money transfer. The basic idea is to put money in "portals" where only those who know the password can unlock the money. For financial institutions this opens up enormous potential as it simplifies cross-border payments, reduces costs and provides transparency and security. This is done with creative and intelligent use of blockchain technology.
The mainstream media cover this market with rare news almost every day, however, there is no depth in their stories … it's mostly just dramatic headlines.
The Wild West show continues …
The 5 stocks of crypto / blockchain picks are on average 109% from 11/17 December. Wild swings continue with daily spins. Yesterday we had South Korea and China at the latest to try to break the explosion into cryptocurrencies.
On Thursday, South Korean Justice Minister Park Sang-ki sent worldwide bitcoin prices and virtual currency markets worldwide when it was reported that regulators were preparing legislation to ban encryption transactions. Later that day, the Ministry of Strategy and Finance of South Korea, one of the main members of the South Korean cryptocurrency government's special regulatory group, came out and said their division does not agree with the Ministry of Justice's early statement on a possible ban on encryption transactions.
While the South Korean government says encrypted trade is nothing more than a game and worried that the industry will leave many citizens in a poor home, their real concern is the loss of tax revenue. This is the same interest that every government has.
China has become one of the largest sources of cryptocurrencies in the world, but now the government is rumored to be considering regulating electricity used by mining computers. Over 80% of the electricity in the Bitcoin mine today comes from China. By shutting down the miners, the government would make it difficult for Bitcoin users to control transactions. Mining will move to other places, but China is particularly attractive because of the very low cost of electricity and land. If China faces this threat, there will be a temporary loss of mining capacity, which will result in Bitcoin users seeing longer timers and higher verification costs.
This wild ride will continue and just like the internet explosion we will see some big winners and finally some big losers. Also, similar to the burst of the internet or the burst of uranium, are those who arrive early to prosper, with massive investors always appearing in the end, buying at the top.