Crypto currencies in a state of war?

What is the difference between an HD DVD and a Blue-Ray disc? To put it in a nutshell: There is a winner and a loser and in the late 20’s the two formats fought a battle on the shelves. Who won? To put it in a nutshell: You won’t be watching a film on HD DVD in the foreseeable future.

With regard to crypto currencies, every enthusiast asks: “Will there be a sole winner among the crypto currencies in the end? And what does that mean for the crypto currencies?”

Arguments for a Bitcoin trader scam

From the point of view of crypto currencies, the Bitcoin trader scam would be the clear pioneer. Some other coins like the Dogecoin, Litecoin or Peercoin are just behind in the ranking order. In addition, however, it is decisive who is asked this question. Probably many would see still other Bitcoin trader scam at the future point.

Unfortunately, the large offer of different crypto currencies will have a rather negative effect. The fight between the HD DVD and the Blue-Ray disc for the standard format probably also had a negative effect on the sales figures of both formats. Consumers were insecure and feared that they might buy the format that will not become the standard in the future.

If the same thinking applies to crypto currencies, the wide range of crypto currencies will also unsettle potential users (especially those with less technical understanding) and prevent them from buying any coin at all. As a result, many potential users will simply wait and see which currency turns out to be the ultimate winner.

The alternatives for a Bitcoin trader scam

For example, if they only bet on one Bitcoin trader scam, the chances are very high to bet on the “loser coin”. However, betting multiple coins increases the chance that the right coin will be there, but also the risk of investing a lot of time, effort and money in many “loser coins” that may be worthless in the future.

Therefore, it can be concluded that his large number of different Bitcoin trader scam coins endangers the future of crypto currencies rather than attracting positive attention.

In this sense, one could argue that the current diversity of coins represents a phase of development that must be overcome. In order to create broad acceptance in the future, it must be made as easy as possible for the user to make a decision. This means that in the end there will be a coin.

Arguments against war

In a format war, as was the case with the HD-DVD and the Blue-Ray disc, consumers had to choose one format. If one format was chosen, the other format was automatically excluded because people would have bought either a Blue-Ray player or an HD-DVD player and would not be able to play the other format. Thus the chances stood 50:50 for the “winner” or the “loser” to decide.

With the crypto currencies there is no such clear distinction. Even if a coin turns out to be the leading currency, this does not completely rule out trading other currencies. There will never be a clear winner. Unlike hardware, there is no incentive for trading to choose only one currency. So consumers can trade in multiple currencies and they are already doing so.

But what is even more significant (this may sound like a bold claim to many now) is that the crypto currency market is much larger than the HD DVD and Blue-Ray disc market. This market consisted only of people who wanted to watch their movies at home in high-definition quality. The market of crypto currencies, however, consists of all people who use money. Thus from nearly all inhabitants of this planet. Thus there is not only a mutually not excluding competition but also still a much larger market. In addition, all coins have their own characteristics and address different segments by nature. Each coin has its own strengths and weaknesses.

So why the comparison?

So why is it important to compare crypto currencies with HD DVDs and Blue Rays when they are fighting a completely different battle? Many people see crypto currencies in a “The Winner takes it all” scheme. So bet on only one coin and claim he will end up as a brilliant “winner”.

But the truth is: it is the winner of every single one. Every coin has its place and a chance on the crypto currency market and it’s simply stupid to claim that only coin XY will be the “winner” at the end.

So instead of promoting a single coin

The Bitcoin halving and the fear of missing something

Akin Fernandez is owner of the Bitcoin voucher platform Azteco and active technology blogger, also known as “Beautyon”.

In the following article Fernandez illustrates his views on the upcoming Bitcoin Block-Halving and what it means for those who risk “missing it”.

To anticipate one thing

The Bitcoin Halving will fundamentally change the way Bitcoin is generated. The reward the miners receive for calculating Bitcoin as a reward will be halved from 25 BTC to 12.5 BTC.

Currently, around 3,600 Bitcoins (2.4 million US dollars) are generated per day. This figure will suddenly drop to 1,800 BTC and will never rise again.

With a little economic understanding, each of us should be able to understand what impact halving will have on the perception of Bitcoin. But since Bitcoin’s perception is almost 100% irrational, it’s hard to predict how people will react to halving.

Bitcoin has been programmed to bring the coins to the market slowly and in a controlled way. This was done to ensure a certain security standard and to limit the availability of Bitcoin for a steady increase in value. In addition, it should not be possible to flood the market with Bitcoins. This has also worked wonderfully so far and it shows us once again the sensitive economic understanding of Satoshi Nakamoto.

Nothing would change with the halving

Actually, from a simple point of view, nothing would change with the halving. Every user could continue to transfer his bitcoins as usual. Nobody would notice anything about this event in practical terms. Also the possible effect on the price would have no influence on how we use Bitcoin as a transmitter for money.

We could send 100 Euros in the form of Bitcoin to a receiver and the receiver could either keep the BTC received or exchange BTC for other goods for the same value. The Bitcoin course is irrelevant to the user if companies were to take advantage of the true nature of Bitcoin as a business model.

It is also important to bear in mind that Bitcoin’s finite nature has no impact on long-term flexibility. The protocol can be improved and capacity increased. All this serves to maintain anonymity and ensure the decentralised structure. A core property of Bitcoin remains unaffected: The limitation of the available funds.

In addition, the amount of money (Fiat currencies) that can be borrowed by the Bitcoin system before or after halving does not change. An infinite amount of money can flow into the network. Bitcoin could absorb all the money in the world and yes, that would be wonderful.