How to Spot the Winners in Crypto
These are my predictions of the attributes of cryptocurrencies that will prevail in the future and may not only become the most useful Crypto, but also the best long term investments. I am not an expert on Crypto, nor am I caught up in the Bitcoin frenzy, just a techie entrepreneur observing this new technology from the outside.
Can any Cyrptocurrency beat Bitcoin?
It's very difficult to beat the "first mover", especially when Bitcoin is practically a household name and easy to understand for investors, media outlets, and regular folks that are not immersed in digital currencies. The problem with Bitcoin is that it is also the biggest target for the Media, Government, fraud, and massive instability in the value of Bitcoin. I previously wrote about the biggest problems with Bitcoin.
What if Bitcoin is the MySpace of Facebook? Or if Crypto, as we know it now, is the Napster of Itunes? There is a possibility that Bitcoin is paving the way for a more mainstream Cryptocurrency that will be essentially the same technology but perceived in a different way by the public.
Top 5 Predictions for the Best Crypto in the Future
The best cryptocurrency of the future will seem more like money than Bitcoin does and will have some or all of the following attributes:
It will seem like pocket change in small denominations. The winning cryptocurrency will start small for most people, they will use it to make microtransactions or micro-investments online. This is important because it is part of training the general population to earn it, buy it, and spend it.
strong>>The winning crypto will be attached to another platform. This currency will be created fully or in part by a company or online platform.
This cryptocurrency will be more stable than Bitcoin. This digital currency will either seem to be or actually be significantly more stable than bitcoin. Part of this could be due to the small transactions keeping speculators away, part of this could be the creator of this crypto selling it as a Token or Coin for cash rather than a mining system. Alternatively, the price could be held down using a Stablecoin concept but perhaps tied to an attribute of the platform it resides on, such as the number of users or cost per click on ads. (Shout out to the Brave Ads for creating "BAT Tokens" where users can earn crypto to view ads, donate to digital currency to their favorite websites, and publishers can use this crypto to purchase pay per click ads).
This crypto will be relatively easy to earn or buy. Since I believe the winning Crypto will be tied to a platform, I believe that a company or platform will make it extremely easy for its users to purchase or earn this currency (Similar to Coins or Tokens).
This crypto will be even easier to spend. This same platform will make it very easy for its users to spend, donate, and transact using these coins or tokens.
The winning Crypto will not be de-centralized.
In case you haven't figured it out from this list, I believe the winners in Crypto will be a Blockchain operated by some organization, alliance, government(s), exchange, or company. This is not my hope, just my prediction. The worst-case scenario is if the Government controls or has influence over digital currencies. One ideal scenario would be if it was established by some exchange or non-profit organization similar to Interac in Canada, in Canada debit transactions are fixed at simple pennies per transaction and possibly one of the most successful fintech innovations I have seen in my lifetime. The most likely scenario is that one of the existing giant tech companies integrates one of these digital currencies into their existing platform. Other tech giants may respond with their own so you could see 2 or 3 dominate digital currencies tied to these multinationals with an exchange where users can easily convert between them.
Will Libra Coin be the Winner in Digital Currencies?
Facebook's Libra coin checks many of the boxes with my predictions in mind. As many are aware the US Government has already taken aim at Facebook because of Libra and there are talks of regulations. While this is bad news for Facebook and the Libra Project, it may actually end up picking the winner if Libra is integrated into the existing banking system while other digital currencies are regulated out of existence. Those issues aside, Facebook could hypothetically launch their own Crypto giving users the ability to buy Libra coins, spend them on games, game add-ons, exchange them with other Facebook or Instagram users, donate to charities and creators on their platforms, and even use Libra coin to buy and sell items on Facebook Marketplace. At first, these small microtransactions would train Facebook and Instagram users to use Libra, making them comfortable with the digital currency and plant the seeds for the future where larger off-platform transactions could be completed safely and easily. This would include or build on their existing review system so there would be a reputation and user profile attached to every Libra transaction. This isn't just theoretical, WeChat already does this in China, WeChat is a widely used social media and communication App where individuals can easily send and receive money from friends, family, or businesses. It's hard to imagine any digital currency that is as well-positioned as Libra Coin will be if Facebook can avoid the US Government's strong-arm tactics and future regulatory hoops.
Local Co-op Cyrpto Digital Currencies
So here's an alternative theory, that could be a naive pipe dream or the best of all worlds. As opensource blockchain technology becomes refined and accessible to small businesses and less technical organizations the de-centralized model could prove my previous predictions wrong. In fact, companies, communities, or Cooperative could leverage blockchain to create simple "shop local" or rewards programs that are much more sophisticated than we are used to. We're all familiar with Air Miles and stamp cards at the local coffee shop where you buy 5 and get 1 free. But what if communities could setup a Co-op where local residents buy a share in a local blockchain used to bolster the local economy. As more people move to shop on Amazon or other online stores, local businesses and towns are desperate to find ways to bring business back to the local marketplace. Imagine a community organization creating digital coins that local businesses could use to run promotions, offer to potential tourists, and communities could use to take back more local control of their economy. This is a philosophy I am working on developing and looking around for anyone else talking about this concept. If you like the idea, or if you have heard of any examples please let me know in the comments below.
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Tue, 11/15/2022 - 05:35
Despite the legitimate adoption barriers of security concerns, difficulty of use, and ignorance, blockchain technology has immense potential.
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