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The projects behind crypto currencies
When trying to find out if a cryptocurrency has a certain potential, then we have to analyze what is the project behind it, if there is real added value, or if it is an empty shell. There are two types of wedge, one that has a design (which is often not real), and one that has only a name and a logo (the "alt corners").
Crypto currencies with project
The project is often the same: create a decentralized exchange platform to allow the purchase and sale of dematerialized projects, such as "Dapps" between developers. Sometimes it is services in telecommunications, video games, art. This title is so prevalent behind most cryptocurrencies, even the most well-known ones, that it seems that everyone who initiates these currencies is content to make a cut and paste.
Some of these currencies are "stable coins", currencies with a fixed price. Others are dedicated to mining with a limited number of units that will be put into circulation in the hope that the scarcity will attract investors and therefore increase the profitability of mining. Some currencies are "hard forks" of a previous currency, such as Bitcoin Cash is with Bitcoin and Bitcoin SV with Bitcoin Cash. That is, an improved version, with more security, more transactions per second, and therefore faster. It happens when a currency is hacked and loses hundreds of millions of dollars, trust crumbles and a new currency is relied on to restore it. Which is not necessarily effective.
Most of the plans for the new crypto currencies being launched are in fact non-existent. The goal is to create beautiful packaging to attract speculators. With very well designed sites, a fake team, marketing done by bots on social networks. Trading volumes are also sometimes tampered with, with bots buying and selling regularly to push cryptocurrency up to the top of the trading platform.
The "alt corners"
The more we advance in time, the more the number of crypto currencies created each day increases. However 99% of these cryptocurrencies are "alt coins", that is, just names, sometimes funny, with breeds of dogs, words related to space, etc. And 99.9% of those currencies will crash after 2-3 weeks, most of the time within 4-5 hours. Indeed, a large number of these currencies have only one objective, to make "pump and dump", that is to say to push people to buy to reach 100%, even 1000% then to collapse. . The people who launch these coins hope to recover their stake with a capital gain. It is akin to the ponzi scheme, which is completely illegal.
Usefulness of crypto currencies
When we see that doing a Bitcoin transaction costs $ 25, an Ethereum transaction costs $ 200, and even a Binance Coin transaction costs a dollar, we can see that these crypto currencies cannot actually be used in life. everyday, except possibly to make substantial purchases (car, house).
The anonymity behind cryptocurrencies means that it can be used by anyone to do anything. If at present the main use of these products is clearly excessive speculation or energy-intensive mining, there can easily be criminal use. We have already seen sordid affairs such as Bitcoin ransom demands, purchases of child pornography content on the Daknet, weapons, drugs, hacking services, etc.
Only a stable cryptocurrency, a "stable coin" could stand out, provided that a central bank can identify each player in the chain in the event of illicit use. The blockchain remains a good way to know where the money is going, but also to condition the exchanges. However, in a world where the environment is important, one wonders if it is really smart to add so much energy expenditure behind such a technical development as useful as it is.
Crypto currencies with project
The project is often the same: create a decentralized exchange platform to allow the purchase and sale of dematerialized projects, such as "Dapps" between developers. Sometimes it is services in telecommunications, video games, art. This title is so prevalent behind most cryptocurrencies, even the most well-known ones, that it seems that everyone who initiates these currencies is content to make a cut and paste.
Some of these currencies are "stable coins", currencies with a fixed price. Others are dedicated to mining with a limited number of units that will be put into circulation in the hope that the scarcity will attract investors and therefore increase the profitability of mining. Some currencies are "hard forks" of a previous currency, such as Bitcoin Cash is with Bitcoin and Bitcoin SV with Bitcoin Cash. That is, an improved version, with more security, more transactions per second, and therefore faster. It happens when a currency is hacked and loses hundreds of millions of dollars, trust crumbles and a new currency is relied on to restore it. Which is not necessarily effective.
Most of the plans for the new crypto currencies being launched are in fact non-existent. The goal is to create beautiful packaging to attract speculators. With very well designed sites, a fake team, marketing done by bots on social networks. Trading volumes are also sometimes tampered with, with bots buying and selling regularly to push cryptocurrency up to the top of the trading platform.
The "alt corners"
The more we advance in time, the more the number of crypto currencies created each day increases. However 99% of these cryptocurrencies are "alt coins", that is, just names, sometimes funny, with breeds of dogs, words related to space, etc. And 99.9% of those currencies will crash after 2-3 weeks, most of the time within 4-5 hours. Indeed, a large number of these currencies have only one objective, to make "pump and dump", that is to say to push people to buy to reach 100%, even 1000% then to collapse. . The people who launch these coins hope to recover their stake with a capital gain. It is akin to the ponzi scheme, which is completely illegal.
Usefulness of crypto currencies
When we see that doing a Bitcoin transaction costs $ 25, an Ethereum transaction costs $ 200, and even a Binance Coin transaction costs a dollar, we can see that these crypto currencies cannot actually be used in life. everyday, except possibly to make substantial purchases (car, house).
The anonymity behind cryptocurrencies means that it can be used by anyone to do anything. If at present the main use of these products is clearly excessive speculation or energy-intensive mining, there can easily be criminal use. We have already seen sordid affairs such as Bitcoin ransom demands, purchases of child pornography content on the Daknet, weapons, drugs, hacking services, etc.
Only a stable cryptocurrency, a "stable coin" could stand out, provided that a central bank can identify each player in the chain in the event of illicit use. The blockchain remains a good way to know where the money is going, but also to condition the exchanges. However, in a world where the environment is important, one wonders if it is really smart to add so much energy expenditure behind such a technical development as useful as it is.
Warning: use this information at you own risk. Always Invest with caution. Invest only what you can afford to lose. Make sure that investing in cryptocurrencies is legal in your country; if so be sure to follow the obligations such as declaring your trading account. Be aware that in many countries, you have to pay a winnings tax on each trade, which can be problematic if you put everything away and lose more than what you previously earned.
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