Alright Zig Forums. I followed bitcoin a while back but never really got into the crypto world. Tried to come back and now there's too many to count.
Where the heck do I start? What's the difference with them all and how soon until the govts start destroying them?
FUCK off and read the sticky you far fuck.
Buy Chainlink and nothing else
Just buy LINK on coinbase
So edgy, yet so void of any legitimate information.
Sticky doesn't say shit about asking the difference in cryptos.
First time I landed there I thought it was a legit scam based on page layout. Any advice on mistakes to avoid there? About to push some funds that way.
DO NOT LISTEN to anyone here. if they chill you some bullshit like chainlink dont buy before studying it, bitcoin is still the king, and there's now new investment and new cryptocurrency go learn about each one of them.
imagine thinking a coin that has made 20% YTD makes that crypto the king lmao.
better get into link while you still can.
DYOR
With that being said, why are other cryptos being created then? Is there a different purpose or process that provides more value than bitcoin?
OP Im about to do you and any other noobs a favor right now. Here's what you need to know and how you start:
Bitcoin was the first paradigm: decentralized money
Ethereum was the next great innovation: It introduced smart contracts, creating programmable money.
Ethereum enabled the explosion in cryptocurrencies as it has provided a platform for the two major crypto themes: decentralized finance (DeFi) and web 3.0 (the concept of controlling your own data and decentralized applications, whose backends at least partially run on smart contract platforms like Ethereum.
After the success of Ethereum, a number of teams have tried and are trying to build 'ETH killers' that also create platforms (layer ones) for others to build web 3.0 platforms and DeFi programs on top.
Some examples are Avalanche, Tezos, PolkaDot, Algorand, EOS, and Solana. Some of them make sacrifices to offer more scalability, one of Ethereum's current weaknesses, and all of them face the challenge that Ethereum already has a critical mass of applications building on top of it, which are all benefitting from their composability and creating synergy with each other
To be continued...
That's why I'm here. 60+ currencies. Wtf for? Coinbase does a great job of listing them similar to a stock format. But what is it that seperates them (aside from price)?
This and only this.
You the real mvp. That's pretty much exactly what I was hoping to find.
Thanks. Seriously.
>Where the heck do I start?
probably the most important thing about a crypto currency is its inflation rate , total amount of coins, distribution and (current) hype.
You want to bet on a different amount of tech stacks. Most of the early tech stacks are based on bitcoin, bitcoin forks, then A shit ton of ERC20's ( tokens on ethereum came out ) now a bunch of gen3 cryptos are there.
BTC tech stack is the "proven" tech.
Cont'd
Ethereum is facing scalability challenges right now, but have plans to make the base layer moore scalable. In the mean time, there are a number of projects building second layer solutions on top of Ethereum
DeFi is probably the hottest area right now, allowing for things like decentrlied exchanges (Kyber, Uniswap, Bancor), decentralized lending (Aave, Compound, BZRX), decentralized margin trading (BZRX), decentralized brokerages (Jarvis Network), synthetic assets (UMA, Synthetix) no-loss lotteries (Pooltogether), or a decentralized federal reserve (Ampleforth).
Some Web 3.0 projects include Brave, which pays users to view ads on their browser, Enigma (private smart contracts), NKN (a faster decentrazlied version of cloudfare), Uport/Civic (decentralized identity), OGN/Origin (decentralized marketplacees).
Other projects are aiming at improving the cryptocurrency space, such as LINK (decentralized oracles to enable blockchains/defi apps/dapps to utilize 'real world' off-chain data. Some allow interoperability between disparate blockchains (Cosmos).
90+% of DeFi is occuring on Ethereum, which will capture moroe ofo the value occuring on it when Staking and EIP 1559 (or whatever the number is) go live. Most 'eth killers' are ghost chains with no one actually using them, despite being valued at billion+ market caps. There are some projects building on Cosmos and PolkaDot, but it's mostly on Ethereum right now
Avoid shitcoins like Ripple, EOS, and Tron
99pct of erc20s are completely useless and the reason ETH doesn't moon is because erc20s (specialized ETH) is taking all that marketcap. NOW there are unironically only a few interesting erc20 assets on the market. one of them is RLC the other one is LINK. then some defi plays but that hype will not last.
Both RLC and LINK are blockchain agnostic. so they can move from ETH base to another when they want.
on top of this you want to know that vitalik premined 70 million eth and gave it to himself + frens for cheap before coming on the market with ETH.
thats where the vitalik ponzi meme came from.
Thx. I'll definitely look into the metrics listed and try a few. Volatility is all over the place, is tracking crypto like a daily thing? Hourly? Monthly? I can assume it largely dependings on investment risk profiles, but what's a reasonable timeline for tracking?
>, or a decentralized federal reserve (Ampleforth).
kek is this really what ampltards believe
Interestingggg. Appreciate the info for sure.
Tbh I've never seen a vitalik meme (that I know of). Sad, but I'm really that out of the loop.
Wasn't that a large reason why crypto started in the first place? To eliminate the reserve system and avoid currency manipulations?
here I've dug it up for you.
I honestly believe that ethereum was suposed to be a scam but then they decided to build on it anyway lmao.
Anyway for OP. this cycle keep your eyes on the following "eth competators"
Cardano Tezos Cosmos
they are the new tech stacks in town.
Personally I'm also eyeing Komodo but its Bitcoin based tech stack.
As far as ERC20s go I like RLC most.
Good to know, thx. Definitely have a lot of researching to do this week, that's for sure.
yeah it seems like 90pct of people do not know the history of ETH which is pretty shitty. sure they got smart contracts first but in any other regard the distribution and start was super ponzi scam tier.
A lot of people shit on dash for the two million premine but they dn't know that a lot of coins includeing ETH started much worse.
the most fairly distributed asset is unironically Monero XMR
monero chan is hot too.
Yes. One major reason was because inflation is needed to maintain a stable dollar as the economy grows. But the federal reserve inflates the money supply by changing interest rates, which in turn affects how many loans are created with commercial banks, who are actually creating new money as they originate loans from borrowers that arent actually backed by assets (well, most of them).
The result of this is that if you leave your money in the bank, for example, each year you are losing 2% of it to inflation, and the economic benefits of money creation are going to the banks at the expense of everyone else.
Bitcoin attempts to avoid that by having a set inflation rate that decreases over time and stops entirely at 21M BTC (in addition to the obvious stuff like new BTC being created by miners rather than banks, which can in theory be anyone, though now it's only profitable if you have ASICs and cheap elecritivty, and owning your coins rather than a bank or another custodian)
The downside to that is as demand increases, the steady supply results in an insrease in price (so people dont want to spend it) and major volatility. Ampleforth tries to solve that problem by making a coin that fluctuates around the price of the 2019 dollar, and that has a reactive supply that can expand or contract in response to changes in demand, which will keep it relatively close to the 2019 dollar. If the total market cap grows, the algorithm actually 'prints' new tokens, and they are all allocated to the holders, relative to their portion of the total supply. Alternative, if the total market cap subtracts due to selling pressure, everyone's holding decreaeses as the supply is cut in order to bring the price back to the 2019 dollar.
So in theory, once it becomes a bit more mature you have the relative price stability from inflation but the increases (or decreases in supply) go to all of the holders of the asset, rather than the smalll group of elite insiders (banks)
>each year you are losing 2% of it to inflation
you also need to realise that they report 2pct but the real actual rate is more like double that at 4pct and now with the corona mega trillion printing the next few years I wouldn't be surprised at rates of 6pct to 9pct
The exact reason why I'm moving most money out of stocks. All the stimulus packages and printed money is going to hurt more than people realize. Physical, tangible assets and crypto are my focus now while my money is still relatively worth something haha
exactly. the stocks are propped up by printed money. as a retailer you can only lose in the stock market. cause the big investment funds have gotten printed money to buy up stocks.
The plays, are indeed as you said. Crypto and precious metals (gold/silver/others )
still though, stocks are more valuable than fiat currency, ANYTHING is more valuable than fiat currency. just understand this then youl'll make it.
Also, fiat currency as we know it right now is an experiment started in 1970. and it is about to collapse.
only buy btc xrp xlm and, of course, link
I'm torn on precious metals. They've been a solid investment for a long time but I think they'll start to devalue as society becomes more technologically advanced.
With that being said, precious metals aren't going anywhere soon as the rest of the world still heavily relies on them. It's just a matter of when they'll cap and honestly crypto seems like it has far better potential for ROI, both short and long term.