Cryptocurrencies: Where Blockchain & Business Intersect
HOW RISKY ARE CRYPTOCURRENCIES?
Blockchain systems, such as cryptocurrencies, are a hot new technology with an unbelievable amount of potential upside. Blockchain technology has the potential to change how society, on the whole, does business.
You may be thinking that the risk potential associated with cryptocurrencies makes them a bad business investment; this assumption is based on logical fallacies and is incorrect. At their core, cryptocurrencies are a technology, and it is important to value them as such.
For an extremely brief overview of valuation issues, note the (following and appended) BITCOIN V. ETHEREUM V. OTHER COINS article for a short explanation of how a few of the most well-known cryptocurrencies differ from each other in substantial ways.
If you're interested in gaining access to our Cryptocurrency Research Lab for Businesses, please SUBSCRIBE BELOW.
Membership is FREE!
Please note that this section is under construction. Updates will be sent via email when the site is more ready. Please subscribe now if you'd like future updates.
BITCOIN VS. ETHEREUM VS. OTHER COINS
Bitcoin is, by far, the most well known cryptocurrency. Bitcoin, however, is an unusual cryptocurrency in that the value of the crypto is based almost entirely on a combination of heavy speculation and supply-and-demand market. Although Bitcoin was initially viewed as private, a publicly available ledger leaves much to be desired from a privacy standpoint.
Unlike Bitcoin, the vast majority of cryptocurrencies and blockchain technologies currently available derive a significant portion of their value from the technology inherent within and specific to a given token. Illustratively, Ethereum is a store of value (speculation) and a platform on which other cryptocurrencies can be created on (technology). As such, Ethereum's value can increase or decrease based on how many other potential cryptocurrencies decide to utilize Ethereum's blockchain platform, as opposed to a competitor (competitors to Ethereum include Cardano, NEM, and many others).
Unlike many altcoins, Monero is not based on the Bitcoin or Ethereum blockchain. Rather, Monero runs a CryptoNight PoW algorithm. The main benefits of Monero's script (over Bitcoin's or Litecoin's) include vastly increased privacy features that result from a combination of blockchain obfuscation and fungibility. Blockchain obfuscation means that, unlike Bitcoin, Monero transactions are virtually untraceable. The fungibility aspect of Monero works in a synergistic fashion with blockchain obfuscation, allowing every unit of Monero to be substituted for another unit of Monero without having either unit of Monero identifiable as belonging to any one person.
There are more than 800 altcoins (aka "tokens" or "other cryptocurrencies") in existence as of January 2018. These coins vary wildly in what they attempt to do. For example, Tron (TRX) is attempting to become the Peer-to-Peer (P2P) version of the Google Play Store. SPANKchain (SPANK) is attempting to revolutionize the porn industry and how porn stars get paid. Notably, both TRX and SPANK run on the Ethereum network. Because these coins (and countess others) run on the Ethereum network, tokens like TRX , SPANK, and every other token on the Ethereum network, have a vested interest in making sure Ethereum enjoys long-term success.