Although cryptocurrencies have again suffered volatility, the sentiment for a turnaround remains strong.
Following Consensus, the original blockchain-reward token is down roughly 10%, falling below the critical $8,000. The recent volatility in the bitcoin price was especially disappointing for long-term proponents, as only a few weeks ago, it was challenging the $10,000 level. Now, the digital token appears ready to test this year’s support line at $6,500.
The last few weeks have firmly confirmed one thing: cryptocurrencies are incredibly risky assets, no matter how you cut it. Here at InvestorPlace, sentiment leans somewhat bearishly. Laura Hoy has a neutral view. Ian Bezek doesn’t believe bitcoin will return to its all-time highs. And don’t invite Lawrence Meyers to Consensus 2019.
Bitcoin
Bitcoin isn’t the fastest blockchain token. It’s certainly not an easy one to mine. Nor is it particularly convenient, now that everybody is “clogging up” its blockchain network Plus, only 21 million units will ever be mined. Once that metric is hit, that’s it. Why, then, would anyone want to buy bitcoin at this time?
Simply, bitcoin has the brand leverage that other cryptocurrencies do not. The term is synonymous with crypto-trading and the broader blockchain industry. And while things move at lightning speed in the technology sector, bitcoin offers familiarity and implied stability. For newcomers to the blockchain, this reassurance — even if purely psychological — could be the decisive factor.
Ethereum
Second-ranked in market capitalization, ethereum hardly behaves like a perennial runner-up. While bitcoin collapsed from its all-time high back in December, ethereum was going strong until mid-January. Even until early March, it stayed above the $800 price point before eventually correcting.
Fundamentally, ethereum is based on a much more advanced blockchain technology than bitcoin. Essentially, ethereum is bitcoin without its flaws and blemishes. The immediate risk is that ethereum falls to this year’s low, which sits around $370. But considering its mainstream value, such a discount would be an enticing opportunity.
Ripple
Just recently, Mila Kunis’ husband Ashton Kutcher made an appearance on Ellen DeGeneres’ TV show. Kutcher being a tech-savvy investor, donated $4 million to the host’s wildlife charity. But the catch was that the donation was paid in the ripple cryptocurrency but before you go out and buy ripple, please note that Kutcher co-produced “Punk’d,” a show featuring celebrity pranks. Therefore, it’s still possible that he’s pulling a fast one on us.
That said, I believe Kutcher, if he’s sincere, made a shrewd move. Ripple, known commonly as the “banker’s cryptocurrency,” aims to improve the financial system through blockchain technology. As you can imagine, that’s caused controversy among bitcoin proponents, who argue that central banking is anathema to cryptocurrencies.
Litecoin
Before the term “altcoin,” or alternative cryptocurrency, was created, early blockchain investors had only one other choice, which was litecoin.
The original number two has a colorful history. Originally conceptualized as a quicker and scalable version of bitcoin, it once traded for mere pennies. Up until the early spring season of last year, litecoin traded for mere dollars. Today, it exchanges hands for over $120.
Is it worth the extreme valuation spike? I argue that it is. First, the enormous profitability stems from increased mainstream integration. Second, litecoin transacts significantly quicker than bitcoin, and is therefore useful for everyday purchases. Finally, litecoin has greater brand familiarity than most other altcoins.
NEM
NEM was one of the first “utility blockchains” to hit the market; that is, blockchain projects that are specifically designed for multiple uses and to serve as a platform to launch new ideas. To that end, NEM’s development team created a “Smart Asset System.” This unique protocol allows individual users to customize the NEM blockchain to fit their needs precisely. In other words, NEM is scalable to your demands. If demand grows, NEM can seamlessly incorporate additional functionality.
In theory, NEM sounds like a market-winner, and it was. However, a hack which resulted in 500 million NEM units being stolen from a Japanese cryptocurrency exchange killed its value but with the hack fading from the news cycle, I believe NEM presents a shrewd opportunity. Irrespective of the breach, its underlying blockchain technology is one of the most innovative. Eventually, more investors will recognize this, increasing its value.
Ethereum Classic
Ethereum Classic confuses crypto newcomers, as it’s actually the original Ethereum blockchain. Similar to the Bitcoin Cash controversy, the Ethereum community had its own internal struggle.
A hacker exploited a loophole in the original Ethereum network, draining several ether tokens. Debates quickly sprouted as to how best resolve this crisis.
The ethereum classic cryptocurrency provides a speculative opportunity based on the shared brand name. Not only that, the higher-capitalized ethereum coin was priced where ethereum classic is today before launching into low-earth orbit.
Perhaps a similar thing could occur with this “classic” version?
EOS
Another utility-blockchain project, EOS’ website states that its programmers “enable vertical and horizontal scaling of decentralized applications.” In human terms, individual EOS users can build custom projects on top of its blockchain platform.
I can’t understand for the life of me why blockchain programmers can’t speak human; thus, EOS gets a strike. Second, EOS, like so many other crypto projects, is cryptic. Most of the actual program architecture will be developed by a company headquartered in the Cayman Islands. That’s strike two.
But recently, EOS has generated significant buzz. The most important is rumors that the number-five-ranked crypto will be listed on Coinbase.
If that’s true and that’s a big if EOS will land on the moon. Remember that litecoin gained significant investor sentiment when it was listed on Coinbase’s consumer-based platform (Coinbase has a separate GDAX trading platform). With EOS currently priced at $12.50, speculators are anticipating a repeat performance.
Steem
The 32nd-ranked coin, steem, is an absolute no-brainer. Among major cryptocurrencies, steem is the only one that you can earn for free.
In a way, Steemit is what happens when Facebook, gets blockchained. On the surface, it’s an incredible concept. Rather than waste time on Facebook’s platform, or that of Twitter, you can make money on Steemit. So why isn’t everyone joining?
Bluntly speaking, it’s extremely difficult to make worthwhile money. While Steemit advertises their thousand-dollar posts, the reality is that most people will make two or three cents per post. Furthermore, con artists have saturated the platform.
For instance, some of the pump-and-dumpers that urged people to buy precious metals to crash JPMorgan Chase & Co because they have naked short positions on the metals are plying their dirty tricks on Steemit.
Still, it is free, which is a huge deal. You can also buy steem tokens to enhance the marketability of your posts, thereby improving your earnings potential.
Lisk
Almost every blockchain project promises that they’re the “next big thing,” yet they all sound the same to the newbie. So what makes Lisk different from the rest?
Utility blockchains must first and foremost offer accessibility; otherwise, how else will people use their platforms? To that end, Lisk’s open-source network is written in JavaScript, the most popular programming language according to a recent survey. This is smart and practical thinking that industry proponents often overlook.
As an investment, the lisk altcoin has seen wild swings. At one point, the token hit above $35. Presently, lisk has fallen back down to earth, trading hands at just over $9.
NEO
The NEO blockchain operates under the “smart contract” principle. Based on the driving force behind Ethereum, smart contracts eliminate the middlemen involved in the enforcement of contractual agreements. In other words, the blockchain acts like an attorney but without the exorbitant legal fees.
Initially, NEO doesn’t appear substantially distinct from other blockchain projects. The primary difference is that the NEO altcoin has garnered serious financial success. Back in January 2017, the altcoin traded hands for less than 15 cents. Today, it’s a quarter shy of $54.
What speculators are looking for is at least a doubling of its current price. A few months back during the crypto-frenzy, NEO eclipsed $160. While I’m not sure if history will repeat itself, a second bullish wave will surely push the altcoin significantly higher.