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Cryptocurrencies to watch & the impact of cryptocurrencies in the next 5 years

Discussion in 'CryptoCurrency' started by Patel, Dec 21, 2013.

  1. Patel

    Patel Senior Member

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    I wanted to make this post to introduce the cryptocurrency scene and provide some insight and education to those interested. I have been researching cryptocurrencies since June of 2011. I first learned about Bitcoin then, and have been researching, following, and promoting it since. But Bitcoin is not the only player in town. In the next 5 years, we are going to witness a wave of decentralized cryptocurrencies which all have different features and uses.

    Bitcoin is by far the most popular cryptocurrency, and it has the most backing behind it. You can consider this the gold standard in the cryptocurrency world right now. Because:


    • It is the most popular
    • Has the strongest network hash rate of about 10petahashes at the time of this post
    • Has a market cap of about 8-10billion $USD
    • When trading in the cryptocurrency world, everyone uses Bitcoin just as people use Dollars in the real world. You can consider Bitcoin to be the gold standard in the crypto community.
    • Currently, Bitcoin has the most development behind it, from startup/atm/exchanges/merchants/adoption
    • Known to be a good (but volatile) store of value with excellent yearly interest rates

    There are many other "Bitcoin clones" out there called Altcoins. Most of the Altcoins that are a 1:1 fork of Bitcoin, and they gain temporary traction but they will not stick around long-term because Bitcoin does everything they do. I don't believe these will stick around long-term. There are altcoins like Litecoin, Peercoin, Quarkcoin, Dogecoin, any hundreds of others, but if their only function is to be a currency, ultimately I don't believe they will work because Bitcoin runs the scene for the Currency/Store of Value benefits.

    There are some really innovative other cryptocurrencies out there that I believe will become widely adopted, because they have other features besides just currency and store of value that Bitcoin already provides. For example, there is a new currencies in development right now that bring other features to the table. NXT, eMunie, and Mastercoin are some good examples that provide innovative features. They are competitors, but they aim to bring the following to the table:


    • Decentralized Asset Exchange / Colored Coins. This allows gateways to issue other currencies (fiat or crypto)
    • Decentralized Marketplace / Auction
    • Decentralized Mixing Service
    • Encrypted Messaging / Chat
    • Decentralized DNS / Alias System
    • Transparent Mining
    • DDoS Protection - Project Kharon
    • Voting

    I think in the next 5 years, as more problems arise with politics, government, fiat currencies, there will be an increased and faster paced adoption into these cryptocurrencies. Many people bring up the argument that cryptocurrency is just a fad, but I really think this industry is here to stay, and it is currently booming right now. With bail-ins, inflation, bank corruption, and the problems with politics and nations, people will be moving to international math-based currencies that eliminate counter-party risk with P2P currencies.

    Here are some reasons why 2014 will be a big year for cryptocurrencies:


    • FATCA (new finance law) + collapse of traditional offshore jurisdictions.
    • US stocks market bubble busts.
    • Series of Cyprus-style bail-ins around the world.
    • ZipZap introducing easier ways to put money into Bitcoin
    • Bitcoin ATM's expand globally
    • Winklevoss Bitcoin Trust ETF may get approved by the SEC
    • Overstock.com accepting Bitcoin in 2014
    • Second Market Founder said wall street will support bitcoin next year

    As Bitcoin becomes easier to acquire, alternate cryptocurrencies will also flourish because Bitcoin is what the dollar is in the digital world. In real life, people trade dollars for goods and services, but in this new digital currency economy, Bitcoin is the gold standard for trading goods and services.
     
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  2. MotiveVision

    MotiveVision Junior Member

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    This is a good read indeed, thanks for this.
    I too believe that cryptocurrency is the way forward, Bitcoin is going to stay on the scene for a long time..I'm not too sure about the other cryptocurrencies though. I recently took interest in 'dogecoin' it sounds pretty stupid but looking at the statistics it's value has been increasing rapidly and I think there might be some good money to be made there!.

    what's your opinion on dogecoin and the future for it?
     
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  3. Patel

    Patel Senior Member

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    Dogecoin will be irrelevant in less than 2 weeks is what I think. It was meant to be a joke and something fun, not a serious competitor. Besides, there is 100 billion of them. The vocabulary around it is fun, but it gets annoying after a while like a bunch of middle school kids laughing at a inside joke.
     
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  4. MotiveVision

    MotiveVision Junior Member

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    Too be honest, I thought the exact same thing as you at the beginning but..BitCoin is having difficulties in Asia, Asia holds 60% of the worlds population so if Asia ends up completely declining BitCoin then it wont last.

    Dogecoin is stupid but I really think that Dogecoin is made for the asian market, it's just more appealing for them.

    http://www.asian-central.com/stuffasianpeoplelike/2013/12/19/139-bitcoin-litecoin-dogecoin-altcoins/
     
  5. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    Well YOU seem to believe in it!:)
     
  6. MotiveVision

    MotiveVision Junior Member

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    Where did you get that "I'm looking for 500k+ Doge." quote from?
    I could of sworn that I posted it on a different forum under a completely different username? :O Scary shibe.
     
  7. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    You did. Don't worry. Good Luck with it.
     
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  8. akacash

    akacash Jr. VIP Jr. VIP

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    If Overstock is successful other places will follow suit, and if wallstreet starts to really dive in as it appears they may, the USA will end up replacing Asia's thirst and probably then some. I could be wrong as I'm not nearly as educated on this as some of the others here, but from the outside looking in, and not knowing a ton of details, that would seem highly possible and almost likely. I really think that as awareness grows about them you're going to see a continued growth for them long after Asia drops out. Obviously it would be much stronger if all of Asia didn't drop them, but I think it could not only survive long term still, but thrive.
     
  9. Patel

    Patel Senior Member

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    The demand is all over the world. Cyprus is aiming to the global hub for Bitcoin is what one of the CFO's for Cyprus University said a few days ago. They have some proposals in place.

    Also I just saw your other thread on where to get Bitcoins, the easiest way it to wire some money to an exchange, and buy it from there, and withdraw it to your personal address. Noone will sell you large amount of Bitcoins for Paypal, credit cards, or anything that can be reversed. Coinbase is good if your in the USA
     
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    Last edited: Dec 21, 2013
  10. demigod888

    demigod888 Jr. VIP Jr. VIP Premium Member

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    Could someone give me a good starting point where to find good material written in human language, not birds about what is cryptocurrency and how it works? Wikipedia was somewhat from birds language : ) If people think that computer works, makes processes and that is the currency, I think cryptocurrency advocates should give more exposure and insights about what is cryptocurrency in essence.
     
  11. Patel

    Patel Senior Member

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    yeah, its basically a digital currency. The currencies are secured by encryption, to make sure they can not be hacked or duplicated. There are also algorithms in place that determine the inflation rate of how much currency will be minted. So Bitcoin in particular will only have 21 million coins. There are miners who verify transactions that take place on the network, and they are rewarded with the newly minted coins for doing the verification work. The less miners there are, the more those miners make. The more miners there are, the less all the miners make. So with more miners, the difficulty to create new Bitcoins increases, and when the difficulty drops, the coins are created easier.

    The rate of new coins which get minted becomes fewer and fewer until 21 million hits.
     
    Last edited: Dec 21, 2013
  12. Patel

    Patel Senior Member

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    There are currently 5 teams competing to provide a decentralized stock exchange or related features.

    NXT
    Mastercoin
    Bitshares
    Colored Coins
    eMunie

    Once this is done, you will see the value of cryptocurrencies skyrocket
     
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    Last edited: Dec 22, 2013
  13. hatemachine

    hatemachine Regular Member

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    He googled your skype username and found the thread.

    [​IMG]

    Scary indeed.
     
  14. maecenas23

    maecenas23 Jr. VIP Jr. VIP Premium Member

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    It was nice to find such a good thread exactly when I was searching for this info :)
     
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  15. Patel

    Patel Senior Member

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  16. Patel

    Patel Senior Member

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    requesting mod to move this to cryptocurrency section
     
  17. small_town_boy

    small_town_boy Power Member

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  18. Patel

    Patel Senior Member

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  19. small_town_boy

    small_town_boy Power Member

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    If there were possible protocol changes, we'd see them already. There really isn't a fix for this issue. Everyone just "hopes" it will not happen.
     
  20. Patel

    Patel Senior Member

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    https://blog.ethereum.org/2014/06/19/mining/
    http://gavintech.blogspot.com/2012/05/neutralizing-51-attack.html

    Not too worried about it. The 51% attack is an issue, but I think every day there is less and less chance of that happening. And someone will come up with protocol or incentive changes before it happens.

    Also, Bitcoin is already govcoin. It's pretty much financial surveillance in it's current state, becoming more and more with antifraud companies like onename.io and regulation. This is why I am not too worried about 51% "attack". Mining pools getting majority power? Ya thats an issue. But I don't think any of these mining pools will go rogue and attack the network. The incentives get rid of that problem, no?

    In the other thread, idk why you said Monero is a scam. I think after Bitcoin, it's the most legit coin that might actually go somewhere. Because of its use of ring signatures. Been researching it since inception, there was no instamine? Even Risto Pietila is an advocate, and he doesn't like any altcoins besides Monero because of its superior privacy. Also gmaxwell (btc core dev) comments on how well ring signatures is.
     
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    Last edited: Aug 20, 2014