Monday, January 15, 2018

Banking on #Bitcoin? Don't put all of your eggs in one basket

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There are constant rumblings of the Bitcoin bubble, and how someday the mother of all cryptocurrencies will eventually crash really hard, and people will lose all of their money. This is inevitably true for some, but for others they will have made some smart moves and diversified their crypto-portfolio a bit to prevent losing everything... Hell, they may actually stand to make even more money!

Many people new to the cryptocurrency world only know about Bitcoin, but there are numerous other "coins" out there that are well worth looking into. It seems like many are popping up every day, and a good majority of those will fail, but there are a couple of others that are well worth the investment now.

Coinbase, one of the biggest cryptocurrency exchanges actually supports three other cryptocurrencies at the time of this writing, and those will be the focus of this article.

The first one I'll mention is known as the silver of cryptocurrency. This is in comparison to Bitcoin being the gold of cryptocurrency for their use as stores of value. It's called Litecoin!

Wikipedia describes it as:
... a peer-to-peer cryptocurrency and open source software project released under the MIT/X11 license. Creation and transfer of coins is based on an open source cryptographic protocol and is not managed by any central authority. The coin was inspired by, and in technical details is nearly identical to, Bitcoin (BTC).
At the time of this writing, Litecoin is way cheap! It's trading at only $240. Imagine getting in on Bitcoin when it was still only at $240! Litecoin is looking like a long term investment opportunity at this time. According to predictions from Wallet Investor, the long-term earning potential is +46.78% in one year. Their one year forecast is anticipating it trading for around $395 in one year and around $890 in five years.

The next alternative to Bitcoin that I will mention is Ethereum! This one is sure to skyrocket over the next few years as many companies are already starting to integrate the technology due to it's ease of use and faster transactions than Bitcoin.

Wikipedia describes it as:
... an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed. "Gas", an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.
Ethereum is relatively cheap at the moment as well trading at around $1300. According to The Economy Forecast Agency though, the price for Ethereum is expected to reach as high as $2,117 by the end of 2018!

The last one I will mention is probably the best bang for your buck at the moment based on how much it is expected to explode over the next few years. It is Bitcoin Cash! It's one of a few forks of Bitcoin after a large scalability debate caused a few groups to create more efficient cryptocurrencies using the concept of Bitcoin, and improving on them.

From their page:
Bitcoin Cash brings sound money to the world, fulfilling the original promise of Bitcoin as "Peer-to-Peer Electronic Cash". Merchants and users are empowered with low fees and reliable confirmations. The future shines brightly with unrestricted growth, global adoption, permissionless innovation, and decentralized development.
At the time of this writing, Bitcoin Cash is trading for around $2,600. Wallet Investor is predicting it to go up to $9,163.84 in one year! The Economy Forecast Agency is expecting it to go up to around $23,000 in 2020!

Obviously nobody knows what will truly happen with these coins as investments go, but if you start looking at how cryptocurrencies in general will revolutionize how the world uses money, you will start to see the potential in some of these bigger alt-coins to gain in value.

You also have to look at the inefficiencies of Bitcoin itself, and start to realize that you shouldn't put all of your investment money just in Bitcoin. Diversify your portfolio, and start looking at putting some of your money in these other cryptocoins.