Number 3 pick for 2018 – IOTA.
This is going to sound incredibly extreme but IOTA could be either the worst or the best investment that one could make in 2018. The reason is that its current valuation of around 7 billion dollars based on the successful implementation of an unbelievably brilliant idea. The idea of a decentralized cryptocurrency that actually becomes much faster and more secure. The larger the entire network gets and has zero transaction fees this will potentially allow it to form the backbone of the cryptocurrency revolution.
Economy that is absolutely massive and in terms of potential market caps if they were to pull this off then it would be worth at least the value of Bitcoin. In this kind of current very slow expensive state of Bitcoin, which is, valued at around 190 billion dollars right now relatively to IOTA’s seven billion dollars, there is a huge potential for unbelievable growth. That is why IOTA is considered to be potentially the very best investment that one can make this year with cryptocurrencies.
However, hypothetically IOTA can actually be one of the worst investment decisions you make. IOTA’s current valuation of around seven billion dollars is enormous, it is absolutely sky-high right now when you consider that it still very much depends on the use of a centralized coordinator in order to guarantee the security of the protocol in the eyes of many people out there.
IOTA can’t be considered to be a decentralized currency until the day where it finally goes away with a coordinator altogether. This might be incredibly harsh and unfair but just as a good kind of analogy to paint a picture in your mind, betting on IOTA right now with the use of a coordinator is kind of like betting on a cyclist to win the Tour de France when they are still using stabilizers on their bike. Once they demonstrate that, they actually can be a secure kind of fully functioning network without the use of that coordinator and that might potentially occur at some point in 2018, then at that point, there is a tremendous potential for growth.
Some minor improvements or developments might happen in 2018 that will have a positive effect on the price of IOTA. As well once we actually have a user-friendly desktop wallet for people to use that does not require people to attach to the tangle and does not involve them having to see zero balances on their wallet, those kind of things will do wonders for the price. If it also manages to stay in the kind of top 5 to 10 of all coins out there and likelihood it gets a hardware wallet support at some point from the companies like Trezor or Ledger Nano S that will have a positive impact. Because many people out there do not feel comfortable storing large amounts of cryptocurrencies if they can’t use something very safe and reliable like a hardware wallet.
More exchanges will start dealing with IOTA and offering it. As for right now the only major exchange or marketplace for IOTA is Bitfinex where the most people have been essentially barred from using it. So if there will be more options besides Bitfinex for everyone around the world that’s only going to do good things for the price. So as for all of those reasons IOTA is considered to be kind of moonshot pick for 2018.
At the same time it’s far too risky to even consider to farm IOTA in the same way that people have done for Bitcoin and Ethereum. IOTA still has to prove itself in many ways before it would deserve that kind of risk. However, there is a great potential for good profits out there as if you could make thousand percent returns on your money, there’s also the chance at the end of the day you could either lose a hundred percent of all the money you put in. Therefore, you have to weigh that risk reward ratio up.
Number 2 pick for 2018 – Bitcoin.
We have Bitcoin and if I were to characterize Bitcoin in the same way that I just characterized IOTA is my kind of moonshot pick for 2018 I would have to call Bitcoin the kind of safe choice for this year. Even though Bitcoin is fraught with problems right now, you have incredibly expensive and slow transactions going on. You have had absolute bitterness, division, and animosity within the Bitcoin community for a very long time now. Despite all those things Bitcoin has a way of just keep marching on and the market cap just keeps increasing and the value of individual bitcoins keep increasing as well. It is called the honey badger of money for a reason and that is because everyone who ever bets against Bitcoin or tries to destroy it ends up failing miserably.
Therefore, no reason at all why that will not continue to be the case in 2018. Especially with all the increasing mainstream awareness and adoption that we are starting to see. We are seeing Coinbase trending on the App Store, stories about Bitcoin trending on Facebook pages. Bitcoin demonstrates that is still completely dominating when it comes to branding for everyday average people. On top of that is the potential for further scaling developments as well. You never know we might actually see the Lightning Network released at some point in the middle of 2018.
Actually, that is not so much of a big deal because today’s valuation of Bitcoin right now is not totally contingent or dependent on many of these kind of future developments that we’re all hoping for. Bitcoin derives much of its value right now from just being a censorship resistant. Storage of value in itself is absolutely enormously valuable to the entire world and especially if we do see some kind of world recession or economic problems for many countries out there then there is the potential.
Nevertheless, Bitcoin values to just keep absolutely skyrocketing and so if there are further delays for Bitcoin in terms of scalability I don’t think it is the end of the world, but if those things actually do go well then again it’s just even more reason for Bitcoin to continue to keep going up in price.
There are talks right now with Bitcoin being in a bubble. Never mind in 2018 when we get more kind of normal people involved and people are concerned about the CME futures and Nasdaq and yeah it might lead to some kind of enormous bubble that pops her endlessly at some point in 2018. What can you do, that is just the way that Bitcoin and cryptocurrencies have always developed. It is always boom, hype, bubble or whatever, Bitcoin always has a funny way of just bouncing back and keep marching onwards.
The questions about how Bitcoin Cash might affect all of this whether it is going to eventually oust Bitcoin and become “The Bitcoin”. However, even if Bitcoin Cash does rise enormously in value this year BTC is going to do extremely well just because of Wall Street investment. In addition, BTC still has such branding dominance in the eyes of everyday average people.
That is the reason why most people will be bullish about Bitcoin in 2018. Even though scaling is going to be painful, transactions are going to continue to be probably more expensive and slower, in all likelihood Bitcoin is going to do well.
Finally number 1 pick for 2018 – Ethereum.
The main reason for choosing Ethereum is that there is very much a clear scaling roadmap in place that the entire community is agreed upon this kind of general consensus on which direction the Ethereum community wants to take.
Throughout much of 2017 the Bitcoin community spent so much time arguing between themselves on Twitter discussing the philosophy of Bitcoin and what Satoshi would make of the current situation today. All those time, efforts and resources could have actually been devoted to the TAC itself or within theorem.
Ethereum community has been able to focus all of its time on just the TAC alone and how it can make Ethereum scalable to server a worldwide audience of billions of people. So for much of 2017 we have had the groundwork laid down for scaling solutions like Raiden network and Plasma, countless ICOs raise funds to build great things on the platform as well. In 2018 we are going to start seeing all of these things come into fruition.
Raiden network allows state channels to take some transactions off chain and can boost certain use cases up to millions of transactions per second.
Plasma is a different approach that allows for off chain computation and could scale to billions of transactions per second for some use cases.
We are going to have projects that utilize the Plasma technology and in the first or second quarter of 2018. We are going to have Constantinople as well which is the kind of second half of the Metropolis upgrade. It is going to introduce a small dimension or a hybrid of proof of stake consensus mechanism along with proof of work as well.
So that’s incredibly exciting, hopefully towards the end of 2018 there’s a very realistic chance that we’re going to see the highly anticipated Casper upgrade as well where we fully transition to proof of stake as a way of securing the network. At this point Ethereum could attract significant institutional investment, as these investors can own stake in rewards from their Ether they own in the same way they earn dividends from the stock they own right now.
Moreover, on top of this, there is all the continued investment and development from all of these enormous companies that are in the enterprise Ethereum Alliance and the biggest factor of all is the kind of positive or neutral reception that actually come from what can be called the establishment.
There is always a lot of talk about government’s wanting to ban Bitcoin because bitcoin is perceived to this kind of rebellious libertarian project, this out to change the world and destroy governments and all that kind of stuff. You just don’t ever hear Ethereum spoken of in the same light as well rather than being painted as another kind of libertarian political cause. Ethereum is more thought of a politically neutral protocol or tech platform, which actually large companies, banks and governments can benefit from using and investing it.
Nowhere was this better illustrated in 2017 when Jamie Dimon the CEO of J.P.Morgan Chase – one of the largest banks in the world calling Bitcoin a scam and fraud. All the meanwhile J.P.Morgan itself is actually part of the enterprise Ethereum Alliance. Many consider the establishment itself getting involved and utilizing this specific technology.
It is just really hard to see how this couldn’t have an unbelievably positive effect on the price in the value of Ethereum and so that is why Ethereum remains number one pick for 2018.
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