What lies in the future of cryptocurrency?
This week was good news for Bitcoin — the news that Paypal is testing preliminary integration of the cryptocurrency that has stopped decreasing prices (at the time of the news appearance, at least) to edit an existing market on a downward trend.
Persistent bear market operates in parallel with Althingi, volume has been steadily declining across all major exchanges . Is this deflation of the bubble began in early 2013? What are the prospects for tens of cryptocurrency projects that pop up every month since the beginning of 2014?
It seems that as the year 2014 comes to an end, and this will begin in 2015, intensive bearish move in the market may result in a large number of projects will crumble without hope of recovery or just disappear.
But there is light at the end of the tunnel, at least as seen by the author.
There will be several altcoins in the long term, here’s what projects will survive and why.
Categories of digital currencies
For better understanding of the negative problems that are unique to the cryptocurrency market today, and also to understand the characteristics that will support success and the value of the currency that you want to sort the myriad of cryptoprocta, create a few categories to analyze the overall objectives and characteristics of such projects. I’m doing three big groups:
Such какLitecoin , Dogecoin, Blackcoin, Peercoin, Vericoin, Quark and Reddcoin.
For example, Xcurrency, Monero, Darkcoin and Bytecoin.
Decentralized services / crypto 2,0
Coins such as NXT, Ripple, Maidsafecoin, Namecoin, Bitshares, PTS, BitsharesX, Mastercoin.
Let’s start with the latter category
Projects in this category contribute to the provision of decentralized services of different kinds — from commodities trading, smart contracts, options, data storage, DNS. All these are new technologies that have not been before or they might be only legal entities.
Although this new and exciting technology, these systems are almost completely not tested and not used by a third party, the target audience.
There is no information how many contracts, in fact ,was “signed” in the real world of business, therefore, it is reasonable to assume that this number is very close, or essentially zero.
That is not to say that this type of decentralized maintenance will not be useful in the future and what it will be used in real business. It takes time to change habits of people and much more will take time to change habits of an entire business.
Ultimately, the crypto 2.0 coins are completely different and not relevant to the purpose of cryptocurrencies is to act as a normal currency.
Also change the set of decentralized services of the theory itself (the abolition of the developers of settings for limiting the number of coins, etc.) makes the currency is arbitrary.
It is important to enthusiasts and investors to ask yourself a few simple questions. Do people come to cryptocurrency because they find the idea of decentralised DNS exciting? How many people will be glad to hear that the goods can be once share via blockchain ? Who uses or plans to use in the future a smart contract?
Brilliant, daring, mysterious … maybe. The calculation of the average man? Not quite.
Common sense dictates that anonymous cryptocurrency projects will remain on the sidelines. Why? And who is interested in this type of function?
Criminals or those who are looking for a digital fiscal Paradise? It doesn’t look accurate, at least not yet. Why? Unstable cost alithinou in General makes them extremely unreliable store of value. And fiscal Paradise can turn into fiscal hell. In the long run, given the fact that the law enforcement bodies whose task is the tracing and confiscation of proceeds from criminal activities in General and also given the recent Bitlicence rules , such projects that propose ways to hide money, will be under scrutiny and pressure.
Hackers? Yes. There is a small but obsessed group of people who argue for anonymity of cryptocurrency transactions. This feat, these people solve complex problems. But how necessary such work, if necessary only for sale on exchanges?
The speculators? Currently Yes, but for how long? The price of anonymity of cryptocurrency was excited on faith, for example, the early days of Darkcoin. The media brought back the nostalgia, Recalling the silk road, kryptonitetm and libertarians reminded why they once loved…the Bitcoin Main force of the pumping rates of anonymous coins is the hype.
And there is a high probability that the bubble based on hype, now explodes. Look at the flagship anonymous coin, Darkcoin. This project is a whole community of developers. They deserve applause for their tireless effort to obtain complex functionality - Masternode payments and Darksend work correctly. According to a recent review of Kristov Atlas looks like their efforts paid off.So why is the price dropping?
The cause of the ongoing bear market is simple: Darksend and Masternode payments are working for a long time. And the price returns to where had to be, if not for the hype.
But there is another reason to doubt the long-term viability of anonymous coins: the Darkwallet project. Darkwallet aims to provide anonymity and functionality Bitcoin wallet ; the idea of a cryptocurrency created specifically to ensure complete anonymity, the fact that Bitcoin is not enough, may become obsolete in one fell swoop, their goal is dwarfed by Darkwallet.
Cryptocurrency was initially designed to be a form of decentralized currency. This idea, in the author’s opinion, has a better chance for future success.
One of the biggest problems facing all of cryptocurrency projects — and “currency coins” are no exception — this is a recurring loss of confidence in the coin, its developers and an inevitable price reduction.
Different people react differently when under pressure. The development project started with aggressive attacks on other projects and personally to people , repel and represent a shameful sight for the onlookers.
The initial surge of interest in another coin and attracts dubious attention, leading to all kinds of disputes, and interesting on the Bitcointalk forum mainly discussed “pumping and dumping” .
Another problem is the lack of innovation. After the initial interest and innovative concepts, these cryptocurrencies show little progress. Lack of development leads to a constant reduction of prices. There is a stagnation , in the market there are cracks, investors flee the battlefield
To succeed, bitcoin must be adopted. It is clear that the project should be aimed at the widest possible public. One of those projects that approached this critical mass, is Dogecoin.
At some point it seemed that Dogecoin has the biggest chance to win the ultimate prize and this will make it basic to use. It’s something to aspire to all altcoins, by combining creativity, marketing and a fanatical success, Dogecoin has moved to widespread adoption, that is difficult for all altcoins…
But, alas, the Shiba inu was unable to achieve orbit, a necessary step before a trip to the moon. And the author proposes a theory of why it happened.
Dogecoin is not just a currency. People do not just buy and use the coin; they also accept and philosophy. The impression that here decoin made a mistake, focusing on serious …
There are, of course, the positive side of the Dogecoin community , you can be sure. There were and still there are charity events, this activity, of course, very laudable. The community recently rejoiced at the news that the attenuation of the network will be enhanced by merging mining with Litecoin , the idea, first proposed by Litecoin Creator Charles Lee in April.
But, the author believes that is the main problem, which has nothing to do with network security. Ironically, the strain of the virus that gave the opportunity for Dogecoin to grow, and he was the first who was fuelled by pure satire, humour,… but the jocularity of contradicts the idea of money. Money itself is a direct tool, deep down people will not trust any currency that looks too wacky or exotic. Everything must be serious and clear. Actually, nobody wants “funny money”.
Dogecoin is close to the idea of a currency that can be used to send small amounts of money online. The currency, which is directed to the General public. But it lacks a certain seriousness, a certain professionalism, a certain goal.
According to this author, the currency with which you can share, should have more complex branding and more clearly defined goals. Of course, it goes without saying that the developers should be very capable and experienced, as this is a complex architecture that must be highly secured. A good example of such a project today is the social currency, Reddcoin ( official video). Given the issues raised in this article, Reddcoin priorities:
At the core of the Reddcoin project is the involvement of social media that is unique to cryptocurrencies. Other projects plan to attract business and investment, but the analysis of many of these projects assumes that they hope that in the future, and in some cases theoretically. The Reddcoin team has already managed to integrate the project with certain social media platforms, and there are significant advances being made in the direction of the new.
The Reddcoin developers have proven their disinterest in promoting his project. The attitude of developers in periods of low activity promised to be a model: no attacks, no tirades. This definition pushes innovation forward - disregard for the emotions that sends derailed many other projects, makes a great impression.
In the world of investment and Finance the safety of your money — matter of each person. Things you need to know, not always obvious, but as the market continues to swing from good and bad projects, an important key thing here is sincere and capable development team and a clear long-term perspective, which needs to be understood.
Reddcoin is one example of a project that meets these requirements, but can be others.