The first comment to the previous article related to cryptocurrencies was “It seems that these Cryptocurrency are pretty good way to get rich!”. Well, not really. There’s a much higher chance to lose your money, unless you understand the technology behind them, you get to know their active developers and so on… ultimately, like with every investment, you’ll have to make a good choice. If you go to https://coinmarketcap.com and click on “View all”, you’ll notice that it tracks at the moment 677 cryptocurrencies. That’s mostly because many people, instead of contributing to the main projects, have forked their own. The only reason why most of those even have a market cap is that naive people mine them or buy them in the initial sale, dreaming of the day that they become rich because of their intelligent decision. They will never spend them, they’ll just hoard them, as if they’d be hoarding stock to a company and not something which has value only if it’s actually used as a currency. At some point their value will go to zero, the developers will lose interest or give up and they’ll think that they were unlucky. Only if they would have chosen another coin!
The point of this article is to disclose which is that “another coin”. I’ll tell you, in my view, which ones from there are going up and which ones will go to zero. Note that I’m a bit biased because GU has in the queue certain Ethereum projects.
- Bitcoin. Going to zero. Skipping all the community dramas and the hard forks, even if the team behind Bitcoin Classic would manage to take over the development process, I still see this going to zero. Too much has to be changed in the source code and too many dangerous hard forks have to occur in order for it to become Ethereum.
- Ethereum. The team behind this certainly works hard and dreams big. It will take over the world. In its final form it should become a global decentralized computer which will track and facilitate the function of: governments, organizations, companies, currency, stock, loans, investments, etc. Ethereum is the smart choice to invest in but make sure you actually buy services with their coin (Ether) from time to time.
- Ripple. Certainly going down. It´s not even a serious cryptocurrency and all that market cap is fake; an expensive marketing stunt that will fail. It´s centralized, premined, with the source code owned by some company and it follows the needs of the state and the banks instead of the people. Most of the cryptocurrencies from coinmarketcap’s top 100 are above Ripple.
- Litecoin. There are less developers working on this than on Bitcoin. I think their small advantages even compared to Bitcoin are going to wear off in six months. Going to zero.
- Dogecoin. Going to zero in a funny way. Again, it’s not a great upgrade compared to Bitcoin. It has the best community by far though and it should fare better than Litecoin in the long run.
- DASH is superior to Bitcoin in many ways. It enables anonymous (mostly) and instant payments. The most amazing thing about it is that it’s self-funded and self-governed. They have developed an incentivisation model by dividing block reward into 3 parts: 1st part (45%) goes to miners, 2nd part (45%) goes to masternodes, and 3rd (10%) goes to the budget, which is to be spent among different proposals (including core team reward) based on poll results… There are two bad things about it: 1) it uses Proof of Work instead of a superior, environmentally-friendly mechanism derived from Proof of Stake; 2) it was instamined at a beginning which wasn’t properly announced, therefore basically it was premined . Still, you don’t even have to read the white paper or check out the activity on GitHub to realize that this is going places. Buy Dash, it’s a great investment, but don’t just buy it… use it as well. Otherwise it won’t be a currency. Sell it before Ethereum implements Proof of Stake.
- MaidSafeCoin and SafeCoin. As with Ethereum, this is a lot more than a cryptocurrency. The SAFE Network is made up of the unused hard drive space, processing power and data connection of its users. The SafeCoin and MaidSafeCoin can be used to pay for these resources. The apps that can be used on the network and the network itself are developed by a company in Scotland. Going to zero. Very overrated. A small team that has been working on this for too long, promises a lot and delivers little.
- BitShares is similar to Ethereum in many ways. Ethereum shines in versatility and BitShares in speed. The main problem with BitShares is that it evolves too slow and I believe that at some point Ethereum will include its features but the reverse won’t be true. Going to zero.
- Stellar.Going down because they offer an unneeded product. Stellar is a decentralized protocol that enables sending money to anyone in the world, for free, instantly and in any currency. Since ultimately there will only be one important global currency, their development process which is moving too slow anyway will be in vain.
- Peercoin. This one uses PoS for network security and PoW for new coin creation. I don’t think any Peercoin was actually spent in that last two years for buying products. Its community is hoping for former glory and will keep doing it until it goes to zero.
To all the fans of the currencies which I predicted to go to zero. Try not to be too butthurt now or happy if I’m proofed wrong. It’s just an article with my opinions. These are not premonitions.
To be continued…