by David Drake
Cryptocurrencies are clearly the future mode of payment. They are changing the way people do business and interact with money across the globe. Since the advent of Bitcoin, we have seen more digital currencies enter the cryptocurrency market.
“As with all endeavors, our first attempt rarely delivers the optimum of all possible outcomes. But if the work has appreciable utility, others come along to innovate and make improvements, such has been the case with digital currencies,” notes Sheldon Corey, the owner of Arges Inc.
Corey continues to state that “developers of new markets are usually celebrated with a great deal of attention, sometimes to the level of over exuberance. Bitcoin broke the trail for crypto currency, with the promise of decentralized, anonymous, fast and inexpensive transactions. Over time, Bitcoin has become weighted by its very own success. The top ten bitcoin mining pools now control about eighty percent of all bitcoins mined, transactions are slow and expensive, and the energy consumed to mine a Bitcoin has become overly cumbersome. The market has replied with thousands of digital permutations, building upon the successes and vulnerabilities of the Bitcoin blockchain.”
Corey weighs in some of the cryptocurrencies in the market and share their thoughts about their future progression alongside Vincent Jacques, CEO at ChainTrade and Vladlen Manshin, Founder and CEO at BCSHOP as follows:
Ethereum (ETH) – This cryptocurrency is gaining traction pretty fast. How do you see it progressing in future?
Vincent Jacques: “I believe a lot in Ether, because the Ethereum network is more and more becoming a standard. Ether is a strong coin, not only because of its size – it’s now the second largest in total market share after Bitcoin – but because of its potential.”
Vladlen Manshin: “Definitely the most promising blockchain for the most complex ecosystem, thanks to smart-contracts support. The people and organizations behind Ethereum Foundation understand the fundamental principles of blockchain technology which should be focused on most to push it into wide scale adoption.”
Sheldon Corey: “Ethereum, also built upon a decentralized blockchain, offers the added utility of self-executing contracts, realizing an immutable blockchain can be used for more than the transfer of funds. The Ethereum blockchain has the potential to disrupt everything from birth records to bank accounts.”
Ripple (XRP) – People think this will be the bitcoin successor. What are your thoughts?
Vincent Jacques: “A lot of people are calling Ripple the successor to Bitcoin, and there’s something to that. Because the total supply is constantly shrinking, it locks in value for investors. As the main focus for a lot of enterprises, it can offer solutions in scalability and transactional speed that Bitcoin can’t.”
Vladlen Manshin: “This is great standard for bank and other robust commercial organizations. As it lacks complete decentralization and smart-contracts, it will never replace more democratic and tech-advanced coins.”
Sheldon Corey: “Ripple’s innovative advantage is the speed of its transactions, and its ability to act as a gateway for any currency exchange, digital or fiat. Many banking institutions continue to adopt Ripple, which may lead to general adoption by traditional banking consumers, and lead to Ripple becoming the “U.S. Dollar” of digital currencies.”
IOTA (MIOTA) – This is called the next generation Blockchain, newer but is it reliable?
Vincent Jacques: “Rounding out the top five cryptos, IOTA has a lot of things going for it. Transactions are free, scalability is good, and it’s in a unique space with the Internet of Things. But as a “tangle”, can it be the next generation blockchain? I worry that many potential users will be put off by the machine-to-machine aspect.”
Vladlen Manshin: “Using Tangle technology, Iota allows to achieve better cryptographic security and faster transactions which may be critical for penetrating emerging IoT (Internet of Things) markets.”
Sheldon Corey: “IOTA offers a great innovative leap beyond the blockchain, providing free transactions of any size, faster confirmation, and unlimited scalability. IOTA has been adopted by some of the world’s largest corporations. For now it is maintained by a central coordinator, the true test will come, if and when it becomes fully decentralized.”
DASH – This one has had a few names, what are your thoughts about it?
Vincent Jacques: “DASH is kind of a funny coin. It’s gone through a lot of permutations, which can make some investors uncomfortable. On the other hand, it’s built to be the most user-friendly payment system in the world, and features built on its 2nd tier network like its instant transactions and private transactions are worth looking at. DASH also pioneered the self-sustaining model where funds come directly from the blockchain. It could do very well – although whether it does end up being the world’s digital cash remains to be seen.”
Vladlen Manshin: “Fast and cheap transactions combined with very active marketing strategy drives DASH price up steadily. On the other hand, it is a breakthrough technology to invade the market on a fundamental level.”
Sheldon Corey: “Dash proposes to further democratize digital currency by adding a masternode tier to perform “privatesend”, “Instantsend” and governance. Masternode operators vote on funding proposals to benefit the Dash ecosystem.”
Litecoin (LTC) – A former Google employee called this the silver to bitcoins gold?
Vincent Jacques: “There’s a certain cache that comes from anything Google – and because Litecoin was released by a former Google employee, it has that in spades. Cheaper and faster than Bitcoin, it’s seen a lot of growth lately. It’s widely referred to as the “silver” to Bitcoin’s “gold” which isn’t necessarily a bad thing. It’s less expensive and more accessible, and because it focuses more on small transactions, it could be very appealing to businesses.”
Vladlen Manshin: “Almost as old and known as bitcoin. Being very reliable over a course of more than 6 years, it drives a lot of attention of investors as a digital silver of the crypto word. Active development and promotion allows it to be on par with the fastest growing coins and promises bright future, at least in a close perspective.”
Sheldon Corey: “Litecoin, as the name implies, is a lighter version of Bitcoin, confirming transactions more quickly, but the equipment to do so is more expensive. Litecoin may be the most vulnerable of the top digital currencies, because of innovations happening in the cryptocurrency space.”