Let's dive into the new year with my personal top 10 cryptocurrencies:
1. Bitcoin remains king.
It all started with Bitcoin and Bitcoin is still my favorite coin. It has the advantage of being the first cryptocurrency and has the biggest network. I also like the maximum coin supply of 21.000.000 BTC. This makes it for Western people a store of value, similar to gold, but then better. Although gold has intrinsic values, as Peter Schiff claims (and I agree), Bitcoin also offers a lot. It isn't just a strong network, it is a trustless blockchain ledger, and besides a network Bitcoin is also a decentralized currency. It was designed as gold 2.0 for the digital era.
I do believe that one needs to hold some physical gold as a hedge against a recession, depression or geopolitical turmoil, like the USA vs Iran crisis momentarily. However, to be used as money, gold has a problem. It is harder to store safely, it offers no dividend and why would any retailer accept gold coins? I, therefore, see it as a hedge and assume that Central Banks will store their gold for a possible return to a gold standard.
I also think that eventually there will be a country that is smart enough to back its Central Bank Digital Currency with Bitcoin. There is significant potential for a BitcoinGoldStandard. This would allow Central Banks to change shoulder and stop the unlimited creation of currency, which steals wealth from its middle-class through inflation.
2. Ripple is the bank's favorite and I never bet against the banks.
I am not 100% happy with Ripple but let's take a closer look. In my honest opinion, XRP is not a cryptocurrency, it is a real-time gross settlement system, a currency exchange, and remittance network. Ripple focusses on transfers of money from foreign migrants to their homes. One of the traditional key players in the remittance market is MoneyGram, with whom Ripple has a partnership.
Ripple is not money, but I do see potential in the growth of the remittance market as it is driven by a rapid increase in international migration. I think that Ripple's solution will force companies like Western Union to rethink their business model or become obsolete.
Although XRP has not had lots of support from its founders, I hope it will join the next crypto bull run.
By the way: I lied, I don't like the banks!
3. Ethereum: the largest developer community can't be wrong.
Ethereum is a global, open-source platform for decentralized applications. On Ethereum, you can write code that controls digital value, runs exactly as programmed, and is accessible anywhere in the world. Ethereum's smart contract technology is a piece of code that allows people to enter into an agreement without the need for an intermediary.
Similar to Bitcoin, every transaction that occurs on Ethereum is available to view on the public blockchain, making the network totally transparent. However, the network will need to be scalable as CryptoKitties, a popular dApp, almost crashed the Etherun network in 2017. The team is working towards fixing these shortcomings. One of their solutions is the implementation of sharding, a transaction verification protocol and plasma, a protocol that focusses on removing unnecessary data from the main blockchain to free up space.
I am also positive about Ethereum's consensus mechanism change from the electricity consuming proof-of-work (also known as mining) to proof-of-stake.
4. Litecoin: besides Bitcoin being "digital gold" we also need "digital silver" for everyday use.
Litecoin was created by former Google employee Charlie Lee and was one of the first serious altcoin projects serving a real purpose. As mentioned above in my Bitcoin analysis, Bitcoin functions as digital gold and is momentarily not used as money in daily purchases. As people in the western world hodl Bitcoin as a store of value, there is potential for Litecoin to become adopted as daily money.
Litecoin is also making serious attempts to implement more privacy through its Mimblewimble protocol, which is planned for 2020. Together with the Grim++ developers, Litecoin's adoption of Mimblewimble adds an extension block to the Litecoin main chain, so people can transact between chains for more privacy.
5. Binance Coin: strong and impressive growth story.
Binance coin appeared in 2017 and took the industry by storm as it managed to accumulate a massive market capitalization. It also holds firm in the top ten coins (coinmarketcap).
Binance Coin, which started as an ERC20 token, is the internal cryptocurrency of the Binance exchange and now has its own blockchain. Binance Coin acts as a trading asset, reduces platform commissions and is used to pay for goods on sites that accept Binance Coin. Using its Proof of Burn protocol, Binance Coin's supply will be reduced from the initial 200 million BNB to 50% of its original supply or 100 million BNB.
Within a few years, Binance Coin managed to be paired with over 400 other currencies on its decentralized exchange Binance DEX, making it one of the most liquid options for trading. Its tentacles reached all the way into the US, South Korea, and even Russia, where they opened divisions.
6. Neo: China's first digital coin and competitor of Ethereum.
Neo was created in 2014 under the name Antshares (ANS) and was the first Chinese digital coin. After a successful ICO it rebranded to Neo.
The Neo team believes in technological advancement through innovation and offers a tokenized future where dApps and smart contracts can be developed using NEO as the main cryptocurrency. By pairing Neo with its partner token GAS, NEO allows developers to create applications that use the machine economy, which they as well as China want to develop.
Neo uses a unique consensus protocol called the Decentralized Byzantine Fault Tolerance Algorithm (DBFT), which keeps consensus possible even when some nodes in the network become malicious.
When China launches its digital yuan, it will boost Neo, as it holds the potential to become a major public infrastructure. The forecast of Chinese governmental and entrepreneurial investments in Neo will allow for significant value growth per token.
7. Basic Attention Token:
Brendan Eich’s Basic Attention Token (BAT) is working hard to make significant improvements to the advertising sector by paying users for watching content and advertisements.
Basic Attention Token is a utility token based on the ethereum technology and is a unit of account between advertisers, publishers and users in a new, blockchain-based digital advertising and services platform.
BAT works with Brave, a privacy-focused, secure web browser that blocks ads and tracking by default.
I sympathize with this project because the advertising industry is old and tired and needs a total make-over. It's about god damn time someone offers us alternatives to the advertising scams that make use of our Google searches and Facebook data. One example of Facebook's illegal actions with our private data is the well-known Cambridge Analytic scandal.
I'll leave you with a thought: it could be very beneficial to you to use the Brave browser from now on and delete all your facebook accounts. I did!
8. Enjin Coin: game on!
Enjin has launched blockchain asset support for EnjinX, the world’s fastest Ethereum explorer, providing a universal library of next-generation ERC-1155 blockchain assets and supporting the creation of a decentralized, interconnected gaming experience like the 2018 box office hit Ready Player One. Enjin recently announced information about their Blockchain Gaming Multiverse, which will be comparable to a real-life, decentralized Ready Player One.
Since EnjinX’s launch in December, the highly flexible blockchain explorer has quickly grown in popularity. To date, five leading token exchange platforms are collaborating with Enjin to create their own branded explorer using EnjinX’s technology, providing users with a seamless transaction verification experience. Changelly, COSS, Kyber Network, GDAC and Kriptomat themselves embraced the opportunity of working with Enjin and will take the gaming industry to a whole other level of cross-chain interoperability.
Read the whole review I did on Enjin: https://www.publish0x.com/editPost/YbWKJVLqzXvRmjnG
Why am I bullish?
In a nutshell: Enjin + Microsoft + Unity + Unreal = Bright future!
The gaming market is expected to witness substantial growth over the 2020-2030 decade. This may be attributed to an increasing number of users taking up gaming as an entertainment tool. Furthermore, increasing consumer awareness towards interactive entertainment systems is also expected to drive the market demand. The availability of high-speed internet connectivity, efficient hardware compatibility, sophisticated gaming techniques, and increased consumer disposable income are some of the key factors driving the market. Technological advancements across the gaming industry are expected to favorably impact market growth over the forecast period. As blockchain becomes mainstream, it will be implemented by all gaming platforms. Enjin plays a key role in this new market and has the early mover advantage with its all-in solution for gaming development platforms and companies seeking blockchain solutions for their projects.
Regulatory shifts and the proliferation of smart devices are also expected to fuel market demand.
Asia Pacific is expected to exhibit high growth over the forecast period. North America is also expected to witness considerable growth over the next few years owing to the increasing penetration of online blockchain-based gaming across the social media platform. Manufacturers as a part of their growth strategy emphasize on collaborating with several service providers in the market. In addition, the need to address monetary issues pertaining to gaming taxes as well as additional compliance costs may lead to market consolidation with a limited number of multi-product operators. You can count on Enjin to be part of the successful companies shaping this wave of innovation.
9. Chinese Digital Yuan:
This is really NOT my favorite coin at all, but the impact might be massive, so let's get into it.
The People's Bank of China recently announced it's close to launching its own digital yuan, in an effort to trigger the global use of the yuan. Beijing has made huge efforts during the last several years to get more international entities to adopt the usage of the yuan in everyday transactions.
The USD is currently the global reserve currency and it is a status that comes with privileges as well as huge tasks. About 60 % of all foreign exchange reserves in the world are USD's and about 40% of the global debt is denominated in US dollars.
The big question is whether China will only create a digital fiat yuan, which wouldn't be interesting at all. Our world is drowning in all the fiat that's being printed by the central banks. This printing press creates inflation and erodes the wealth from the middle-class. If China doesn't back its currency, it will be a shitcoin if you ask me.
China should go back to a gold standard, backing its new digital yuan with gold and/or digital gold being Bitcoin.
If China wants global adoption of the yuan, they shouldn't make a fool of themselves by asking the world to adopt an unbacked shitcoin. They also better come to realize that western citizens will not stand for their sick social credit system, which might be entangled with their digital yuan.
10. Your favorite coin: please let me know what coin I missed and I'll write about it.
The number 10 spot is open for you to decide...