Today we have hundreds of cryptocurrencies in the market. But what is the ideal cryptocurrency?
With Bitcoin many of us came late and did not invest in what would be the most profitable digital currency: we lost the opportunity to buy Bitcoin for 0,01 dollars and, when the price was around 50 dollars, we thought that there was no better chance of economic gain and that the coin was in a bubble. We were wrong.
We cannot go back in time.
Many cryptocurrencies arrived on the market: now they are hundreds! And I'm sure you're looking for a currency that can exponentially increase its value like Bitcoin did the first years. But how can we recognize it? How many of you saw the potentiality of Ethereum or Monero the first days?
What I would like to do is write here what I think are the specifications an ideal currency must have in order to have a Bitcoin-like pathway and grow exponentially of value. The reason to write this is to avoid that you invest money in coins that will not have a great valuation or that could make you lose your investment. We do not want to play the game of investors who focus on the very short period and who need people like us (very small investors) to have high earnings. On the contrary, we are interested in thinking over the long run and investing in a profitable project.
The ideal cryptocurrency
1. Mineable but difficult to mine
A coin you can mine is a coin with a community who believe in the project because...everyone would like to create money from nothing! On the contrary, a non-mineable coin has a risk: centralization. Who tells us that behind a non-mineable coin there is no organization (or a group of organizations) that holds the majority of the capital? In my opinion, a mineable coin helps the decentralization.
But what happen if a currency is really easy to be mined? Too much money on the market!
And here the point 2.
2.Low total supply (<100 millions coin)
Probably you know: a coin has a circulating supply, that means the total coins you can find in THIS MOMENT on the market and, sometimes, a total supply, that means the finite and available coins (even the coins that aren't yet be mined). For example, we know Bitcoin has a current supply of about 16,5 Millions and will have a total supply of about 21 Millions. What means this? It means that inflaction can be made. So a coin can become a rare asset and its value can increase.
On the contrary, if a currency has infinite supply or billion coins of supply it needs a huge market cap or the single coin will value almost 0 at the beginning, betweeen 0 and 1 euro after some years.
3.Fast payments
Think about a future in which we can buy at a local store with our cryptocurrencies. The transaction should be long or fast? Should we stay in this store for minutes or hours after the payment? I think we will not want this!
Bitcoin is not a currency for fast payment, is more like gold, and usually you don't pay with gold. So, a fast currency is able to make an exponential growth and mantain its value, and become a pop one.
4.Price < €0,10
We need a cheap coin, 'cause we need a small initial investment in order not to lose a great amount of money. In my opinion a coin with an initial price under €0,10 will give us the oportunity to spend between 10 and 100 dollars and make profit. Or lose just this money.
5.Light Wallet
A wallet can be online or run on our machine. If the wallet need to download the entire blockchain from the beginning, it can cost GB on our hard disk. This could discourage users. So "light wallet, many wallets" is the right way.
6.Not Ethereum blockchain
Many new cryptocurrencies use the Ethereum blockchain; it's useful and maybe easy to be implemented. I don't know 'cause I'm not a developer.
But I think in this way they are related to the Ethereum trend so it could be a pros but also a cons. Our ideal currency need to be indipendent and a market leader!
7.A good community
A currency is just a medium, a cryptocurrency need to be also a community. If we the people support a currency with these specifications, we'll have a future-proof coin, able to resist deflaction and pump. Bitcoin docet.
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I hope you'll write here your opinion too!
https://steemit.com/steem/@swiftcoin/gold-coins-with-your-bitcoin-and-steem
Selling real gold coins for steem dollars