Best 3 cryptos to invest in for the long run as BitCoin replacements (5+ years)

in #cryptocurrency8 years ago

   BitCoin was a grand idea. It was a pioneer, but, like all pioneers, it got old and younger contenders outmatched him. He's grandpa Crypto, but let's face it: in a few years we're gonna have to take him out the back and shoot him. Bitcoin has lots of problems, among which:

  • Very slow transactions (can take days to complete), so it could never serve the general population if it gets adopted;
  • Huge mining/network maintenance cost, which leads to huge transaction fees;
  • Inability to handle a large number of transactions per second (less than 5 per second!). The network occasionally reaches 100K+ unconfirmed transactions which take days to complete. There are 21 000+ unconfirmed transactions at the time of writing;
  • The network is exclusively proof-of-work, which makes it vulnerable to attack;
  • No marketing plan;
  • Not new user friendly;
  • No voting system for development of the coin, which decreases user trust and could lead to hard forks.

   Because of all these issues, I think it's safe to assume that BitCoin will not be the main cryptocurrency of the future. For it to remain number one, a miracle would have to happen in its development.

   That being said, let's jump into what to look for in a currency that has the potential to serve a much larger user base than BitCoin. Obviously, most of them are just solutions to Bitcoin's problems:

  • Very fast transactions and confirmations;
  • Acceptable network maintenance costs and much smaller transaction fees;
  • Can handle a huge number of transactions per second.
  • A network that is at least partially based on proof-of-stake or importance, so it would be incredibly expensive to attack the network. It would also allow regular users to vote on the future of the network, not just huge players.
  • A strong marketing plan to attract more users. This should be funded by the network itself through a percentage of the transaction fees going to marketing, not left to charity.
  • Ease of use for new users. This includes the existence of light wallets, clear explanation of the wallet functions and as little technical details as possible on the front page, so as not to overwhelm the average Joe;
  • A clearly defined community voting system for major network decisions.
  • Non-anonymous, experienced developers;
  • Ease of buying. If you can't buy it with cash or BitCoin without registering an account at an online exchange, then it's not gonna get bought by the aforementioned average Joe;
  • Transparency. The default transaction type for the currency should be public, otherwise it will look too shady for governments, and for a lot of users too;
  • It should be designed as a currency, not as a service. Therefor, Ethereum, Augur, Golem etc. don't qualify;
  • A good name. I can't imagine PotCoin, Pepe Cash or Hacker Gold ever becoming a mainstream currency of the world, can you?

   Now that we covered all of that, here are the coins that stand the best chance to overtake BitCoin in the long run, in my personal opinion:

#1 & #2, in no particular order: Dash and NEM

   They both have great technology and really quick transaction times, but NEM is a little bit better overall, especially when it comes to the costs of maintaining the network, and therefor transaction fees. However, Dash has better marketing and a higher market cap, and, as we've seen in BitCoin, a large market cap can take an inferior technology a long way. Dash also has optional private transactions, which NEM does not. In my eyes, it's a really close battle between these two and I don't have enough information at the moment to try and predict a winner.

#3: PIVX

   As a technology, PIVX is an improvement over DASH in every possible way, but  it has a few problems that set it behind its competitors:

  • No light wallet on the official webpage of PIVX, because none exists yet, although the currency is over a year old. Average Joe would most definitely not like that.
  • No way of buying the currency without registering at a crypto exchange. While both Dash and NEM can be bought with BitCoin and other cryptos on ShapeShift.io (Dash) or changelly.com (NEM), which are instant exchanges with no account needed, PIVX does not havs that option. This means that you have to pay a transaction fee 3 times when exchanging: when you deposit, when you exchange and when you withdraw, plus the inconvenience of registration. If I wanted to pay huge fees and register to make a transaction, I'd use PayPal instead.
  • The 2 previous points lead me to my next point, which is: the developers don't seem to be as dedicated as the ones of Dash and NEM, and their marketing skills seem to be inferior. Of course, this is just one man's opinion, so take it with a grain of salt.

   I think that, because of these reasons, it would be hard for PIVX to catch up with the competition, unless the developers really start putting some work into it or hire some help.

   It is my opinion that one of these 3 currencies will overtake BitCoin in the next 5 to 10 years, multiplying in value hundreds, if not thousands of times.

   Even if you don't agree 100% with my picks, I hope this article still provided some useful information to you. Don't forget to follow me if you would like to see my next articles, and upvote my post if you found it interesting. Good luck! 

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I'm bullish on Bitshares for these purposes. Especially if the project adopts a similar bandwidth-limited algorithm that Steem uses in order to remove trx fees entirely. Maybe MKR too... since they are making a stablecoin pegged to SDR which is a basket of currencies.

IMO, Stablecoins are necessary to create a proper digital medium of exchange that will facilitate the transition between the traditional economy and the digital economy. Your picks make sense from the perspective of communities that appear to be growing, and I like the idea of privacy features for blockchains, yet I still feel a value transfer network is a fairly limited use case and there are promising blockchains that exist today that offer the features of a value transfer network without wasteful PoW mining and including additional features such as on-chain exchange.

go for eos
man im serious slook it up you prolly alrdy have but eos is good stuff love the creator of bitshares

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Hope this can help you get a little extra in your wallet.
Good luck!

Eat abt digibyte coin..its also be growing future

This is a well informed and attention grabbing article. There are a lot of articles about digital currencies on this site but not many that have such detail with an unbiased agenda. Well done!

I have not studied Nem at all but I will look into it now that you have put it next to one of my favorites - that favorite being Dash.

I'm glad you found it interesting!

Very good information. Thanks for sharing it. I'm a fan of Dash also, but I'm concerned the small number of coins in the circulating supply and the large percent of those stashed away in wallets to run masternodes is a drawback to it becoming the coin of the common man. Such a small liquid supply may make Dash more volatile which would tend to scare away non investors.

I'm sure they will decrease the Dash required to run a node as the price of Dash increases.

Thanks for the hot tips, following you now for more - I'm just trying to get my head around all this stuff - I think DASH has the name and the marketing nailed, and is my pick - https://steemit.com/cryptocurrency/@sift666/cryptocurrency-101

Do you think now is a good time to buy back into Dash? I pumped and dumped from ~$11 to ~$50, and I'm willing to get back in, but I have been waiting for it to drop a bit more.

I do. But I'd buy Dash and NEM in equal measure, not just one of them. I'd invest a smaller amount in PIVX, like 25%-50% of what I invest in Dash or NEM.

Upvoted and following... I have heard a few times that Bitcoin might just be the pioneer that makes some space for the currency that sticks.

MySpace.com always comes to mind when I think about Bitcoin.

When MySpace first came out, everyone was on it and raving about it and if you weren't on it you were lame. It was the first time we had seen such a great way to share ourselves with our friends and find old friends. But when Facebook came along, they upped the innovation and MySpace couldn't find the advertising spam.

Facebook waltzed in because they didn't have to introduce the idea of social media. MySpace had already done it for them.

What are your thoughts on bank supported cryptocurrencies?

I know, I know... we are trying to get away from the old institutions, and their needless tracking and control and charges.

But in a realistic view, people are either (1) trying to make some money or (2) trying not to get screwed if the economy crashes (which seems more likely to come after recent banking deregulation which is what got us in trouble in 2008).

So if people are trying to protect themselves, and they see the instability of Bitcoin as a big risk, wouldn't a currency backed by a bank make the general population (the ones that won't adopt new technologies until eveyone else is doing it) make them feel safer?

I am a fairly free thinker, but I have become keenly aware of my own programming that says, "How can my money be safe if there is no institution exploiting my involvement in the system?" I think that a lot of people feel this way.

This is good. I especially like the way you're gentle with the audience by saying that even if they don't agree with your pics, you provided some useful information.

You did do that.. and you make some good arguments.

You'll get a good following if you keep writing this way I think.. In general if a post takes an hour to write (with links and photos), and you feel proud of it. You know you did a great job.

..here you did a great job. :)

Thank you for the encouraging feedback! I appreciate it a lot!

Why not Steem? :-)

Because it's designed as a service, and I mentioned in my list of things to look for that this is undesirable, in my opinion. I also was unable to gather enough technical information on the currency to determine if it can serve a very large user base. I'm not saying Steem won't grow, I just don't think Steem's designed purpose is to replace BitCoin as the mainstream currency of the world... It also does not have a desktop lightwallet, which is important for security reasons, and the marketing does not seem to be as good as the one for my top 2 picks, at least.

At the present time I'm interested in Bitcoin and Dash. But thank you for informing me of Nem.

With pleasure!