Often the question arises: how do you choose which cryptocurrency to invest in – aren’t they all the same?
There is no doubt that Bitcoin has captured the lion’s share of the cryptocurrency market (CC), and this is largely due to its FAME. This phenomenon is very similar to what happens in national politics around the world when a candidate gets a majority of votes based on FAME, rather than on the basis of his or her proven abilities or qualifications to lead the nation. Bitcoin has been a pioneer in this market and continues to make almost all headlines. This FAME does not mean that it is ideal for the job, and it is known that Bitcoin has limitations and problems to be solved, but in the world of Bitcoin there are disagreements as to how best to solve problems. As the problem worsens, developers are able to launch new coins that take into account specific situations and stand out among the approximately 1,300 other coins in this market. Let’s look at the two bitcoin competitors and find out how they differ from Bitcoin and from each other:
Ethereum (ETH) is an Ethereum coin known as ETHER. The main difference from Bitcoin is that Ethereum uses “smart contracts” that are account management objects in 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, which goes beyond what Bitcoin or any other blockchain network can do. Smart contracts can act as a standalone agent, obeying your instructions and rules for issuing currency and initiating other transactions on the Ethereum network.
Ripple (XRP) – This coin and the Ripple network also have unique characteristics that make it more than just a digital currency such as bitcoin. Ripple has developed the Ripple Transaction Protocol (RTXP), a powerful financial tool that allows traders on the Ripple network to transfer money quickly and efficiently. The main idea is to put money in “gateways” where only those who know the password can unlock money.
The mainstream media cover this market with sensational news almost every day, but their stories are rarely detailed … most of them are just dramatic headlines.
The spectacle of the Wild West continues …
Shares of 5 cryptocurrencies / blockchain have grown by an average of 109% since December 11/17. Raging oscillations continue with daily upheavals. Yesterday we had South Korea and China for the last time to try to ease the cryptocurrency boom.
South Korean Justice Minister Park Sangi on Thursday temporarily lowered global bitcoin prices and caused a shock in virtual coin markets when he allegedly said that regulators are preparing a law banning the exchange of cryptocurrencies. Later in the day, the South Korean Ministry of Strategy and Finance, one of the main agencies affiliated with the South Korean government’s Cryptocurrency Regulatory Working Group, resigned and stated that its ministry did not agree with the government’s premature statement. possible ban on cryptocurrency trading.
Since the South Korean government claims that cryptocurrency trading is nothing more than gambling, and fears that the industry will leave many citizens in a poor home, their real problem is the loss of income. It’s as much a concern as any government.
China has become one of the world’s largest sources of cryptocurrency mining, but now there are rumors that the government is investigating the regulation of electricity used by mining computers. Today, more than 80% of the electricity for bitcoin mining comes from China. By shutting down miners, the government would make it harder for Bitcoin users to verify transactions. Mining will move elsewhere, but China is particularly attractive because of the very low cost of electricity and land. If China continues this threat, there will be a temporary loss of mining capacity, which will lead to an increase in the number of bitcoin users and an increase in transaction verification fees.