I've Studied The Top 500 Cryptos... There's profit to be made

in cryptocurrency •  2 years ago  (edited)

The Blockchain Has Hundreds of Uses



Thinking that the only use of the Blockchain (the underlying technology for Cryptocurrencies) is transferring money is like thinking of the Internet as just a place to upload and browse pictures... it's not even scratching the surface


Hey guys, I'm back! For the past week and a half I haven't posted a single thing which, if you're a follower of mine, you'll know is strange because I usually post every day or two.

Apologies for that; I'm still in the final month of my masters (summer semesters suck believe me!) and everything got a bit hectic with an upcoming deadline so I wasn't able to post for a while...

But I'm back now and I aim to be putting out as much valuable content as possible for you lucky people ;)

So, let's jump straight into today's post...


For the quick version, you can skip straight to the 'Summary' section at the bottom if you wish :)

The Top 500


Over the past few weeks, I've looked at the websites of every single Cryptocurrency in the top 500 (it's been a lot of work!!). The purpose of me doing this is to attempt to find a standout Crypto with a low market cap that has the potential to go to the moon... after all this is the 'Moonshot Series'.

I have found many potential moonshots that appear severely underpriced right now so keep following if you want to hear all about those very soon ;)

There are WAY too many Currencies


(To clarify, when I say 'Currencies' in this post, I'm referring specifically to Cryptocurrencies with the sole function of transferring wealth e.g. Bitcoin)





While searching through the top 500 coins I discovered something a little bit crazy... the vast majority are all competing to be the exact same thing; the "new Bitcoin" i.e. their sole purpose is to transfer wealth and they ignore all of the other incredible uses of the blockchain such as the smart contracts capabilities of the Ethereum platform.

The competition for this role is therefore CRAZY high and 99.9% of them probably have no future yet people are still buying these currencies.

In today's post, I'll cover the relevant trends in the market that I see and how we can use those to make so make some nice profits.

Why Can't They All Succeed?


To justify why I believe 99.9% of currencies (just my opinion) won't survive I'll give an example.

Let's look at Reddcoin. The purpose of Reddcoin is to be the 'Cryptocurrency of Social Media' but I ask the question 'Why would anyone choose to use Reddcoin on Social Media when they could use Bitcoin instead?


A Few Currencies To Rule Them All


(This LOTR joke might be my worst joke so far but the point is valid)

Let's say Bitcoin hypothetically solves its scaling issues and becomes the largest and most widely used Cryptocurrency. I doubt it will personally but it doesn't matter because you could replace Bitcoin with any currency and the point is the same...

Why would anyone choose to use Reddcoin over Bitcoin?



Reddcoin claim they are unique because they are targeted at social media payments but there is NOTHING stopping Bitcoin (or whichever currency is most successful) from simply adding this to their functionality also.

If this occurs, you will have 2 Cryptocurrencies competing for the same market; one is a gigantic currency used by many and the other is tiny in comparison. The winner is not hard to pick.


On top of this, if Bitcoin makes it as another form of currency in the world then lots of people will hold it and spend it regularly so clearly it is beneficial to be paid in Bitcoin; it would be a commonly accepted form of money.

On the other hand, Reddcoin will be nowhere near as useful because virtually no shops will accept it etc and users will just have to convert it to Bitcoin or fiat currencies which costs fees.

The best overall 'Currencies' are better for the purpose of social media than even the coins specifically targeting this market



It is for this reason, that I believe 99.9% of coins will default to zero (unless the coin has a real application other than a transfer of wealth) - because the best few Cryptocurrencies for transferring wealth in one industry will also be the best in every other industry and will thus dominate all markets where this is the sole purpose.

Ultimately, people don't want hundreds of different currencies when sending money. They want one or two which are used by everyone.

What About The Other Types of Cryptocurrencies?


This is where I get excited because I believe the market is currently skewed and we can make take advantage of the future trends to make money.


Top_10.png


Out of the top 10 Cryptos (shown above), 7 of them have the goal of transferring wealth (Ethereum, NEO and Ethereum Classic have far more functionality e.g. smart contracts) and this pattern continues as you look through the market... yet only a few will survive.

The competition is insane so picking the winner is extremely challenging... yet people continue to invest in these hundreds of currencies. It makes no sense to me!

It's All About The Blockchain


The public (and therefore the markets) appear to be overlooking one incredibly important fact...

The Blockchain has hundreds of uses



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Everyone is so focused on the idea of Bitcoin and 'Internet Money' in general that they've somewhat overlooked the other huge range of Cryptocurrencies with incredible potential uses.

Some of you may be reading this and thinking "But there are lots of other Cryptocurrencies already high in the markets such as Ethereum".

I acknowledge that there are already examples such as this but my point is that the market is overbalanced in the favour of pure 'currencies' and some of the other Cryptos are still massively underpriced.

It's similar to if someone invented the Internet today and Instagram (i.e. photo sharing) took off as its main use. That would be neglecting the incredible potential that the Internet has; just like the Blockchain. In this example, websites like Ebay, Amazon, Google etc. haven't fully taken off yet but they will do soon and the potential to profit once they do is unreal.


The Blockchain Is The Next Internet


Sorry guys but I'm not going to write here about how the blockchain works etc. because there are already hundreds of articles online which probably describe it far better than I could. In fact, if you would like a quick explanation with a few of the benefits included, check out this article (I have no affiliation): http://www.consultancy.uk/news/13484/blockchain-technology-how-it-works-main-advantages-and-challenges

What I will say though, is that the Blockchain is a game-changer and has the potential to revolutionise an incredible number of industries; just like the internet did.

An example for you guys



Let's look at Uber; their business model is to connect drivers with users who require a taxi. They then charges a 20-30% fee (depending on location). The company is worth around $60 Billion because of this service.




The Blockchain Can Defeat Uber



It's perfectly possible for anyone to come along now and create a blockchain-based equivalent of Uber and outcompete Uber's fees by charging as low as 3-5% and still make substantial profit.

In fact, there are several Cryptocurrencies currently attempting this but, for the time being at least, I don't think any of them are good enough to compete with Uber.

However, as the Blockchain essentially enables developers to produce a far more efficient business model than Uber, it could just be a matter of time before Uber is replaced as the number 1 service.

If this happens, then this Cryptocurrency would be worth the same as Uber i.e. $60 Billion but most likely even more, considering the market size will also grow in this time.

A $60 Billion Cryptocurrency would be just behind Bitcoin (at the time of writing) as the largest in existence.



The truly mind-blowing part of is that this is just 1 out of hundreds of possible examples and yet people are still so focused on Cryptocurrencies with the only purpose of transferring wealth.

Even better, if you can find a Cryptocurrency with this kind of potential and buy in when it is cheap and ride the wave all the way to the top, you could make some crazy amounts of money e.g. if you bought into an Uber competitor when it's market cap is $20 Million and it ends up being worth $60 Billion.. you would have increased you money by 3000x (£1,000 would become £3 Million).


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Another Example?



The real estate industry is HUGE (around $217 TRILLION) and yet the market suffers from one major issue - illiquidity.

By this I mean that, when someone buys a house, their money is tied up in it and they cannot spend it without going through the extremely long process of selling the house.

There are Cryptocurrencies in the works already which will allow homeowners to sell 'shares' of their house to people from all around the world and then those people will collect an equivalent share of the profits when the homeowner chooses to sell.





There are massive benefits for both parties; homeowners and investors

Homeowners

Homeowners with serious debts, for example, can sell 'shares' in their house as a means of raising money to pay off debts. This is far more cost-effective than re-mortgaging the house and it can even save families from eviction when the debts are too big for even this.

Even without debts, homeowners often wish they had a greater amount of money in their bank to spend instead of it being tied up in their assets.

Investors

Investors can also benefit massively because it allows them to invest in property without having to invest huge sums e.g. they can invest just $50 if they choose. Also, there is currently a huge demand in China to buy into the more stable US real estate market and Cryptocurrencies like this will make that possible.

With the real estate market being worth $217 Trillion and Cryptocurrencies potentially solving the largest problem that the market faces, how much potential for growth is there here?


Best of all, I've simply listed 2 examples of the top of my head... there are literally hundreds, if not thousands, more examples just like this

The Market Will Change


Right now, the market is dominated by 'Currencies' (Cryptos with the sole purpose of transferring wealth e.g Bitcoin).

However, the example mentioned above is just one of thousands of possible examples and many of these will come true.





For this reason, I believe that over the next few years we will see a dramatic shift in the market where the dominance of 'Currencies' will end and the market will be a hugely diverse range of Cryptocurrencies, operating in nearly every industry.

As such, there could be a TONNE of money to be made by finding the top Cryptocurrencies in all industries

Which Cryptocurrencies should I pick?


Right now, I'm still in the process of picking the next 'Moonshots'. However, don't get me wrong - I have found plenty of potential investments already... but I've learnt from feedback on my other posts that a true description of any Crypto has to include a comprehensive comparison with ALL competitors.

Sadly, it takes a fair amount of time to analyse several Cryptos for just a single post so please bear with me :)

I don't want to be a tease for you guys and leave you with nothing though, so I am going to highlight a previous post of mine. In that post, I described how I believe one of the next big steps for Cryptos is to gain public adoption.

And, for this reason, I stated that I believe Cryptos aimed at helping public adoption (e.g. Crypto debit cards, easy-to-use wallets etc.) would be particularly smart picks for the next year or so... since then both Tenx (roughly 4x increase) and Bitquence (around 20x increase), which have this purpose, have surged by ludicrous amounts.





This trend still holds true and I expect a lot of profit can be made through investing in Cryptocurrencies that serve this purpose.

Forget About The 'Currencies'


Ok, don't get me wrong; there is still plenty of money that can be made within the currency section of Cryptocurrencies but this particular market is unbelievably competitive and ultimately most competitors will collapse in the end.

Whereas, the market for the hundreds of other uses of Cryptocurrencies is still highly underdeveloped and in the VERY beginning stages, therefore the competition is very low and the potential to make money is crazy high... that's my kind of market!

The take home message for you guys is this; stop thinking of the blockchain as just a way of transferring money (e.g. Bitcoin) and begin seeing the amazing potential it has in virtually every industry (finance, insurance, real estate, ticket purchasing, proof of ownership etc) and, therefore, the incredible investment opportunities that it presents.

The Moonshot Series


Previously, I have said that I will upload regularly for the Moonshot Series and I am truly sorry that I have not been able to so far.


Moonshot_Series_Image.jpg


But, having searched through the top 500 Cryptos, I am only now in a position where I believe I can analyse the potential of a Cryptocurrency thoroughly enough to suggest to others the investment opportunity.

As I've said above, my new process of analysing the whole market thoroughly will slow the process down but I believe it's important to put quality over above quantity.

Summary


  • The market is currently dominated by copies of Bitcoin i.e. currencies with the sole purpose of transferring wealth

  • But the underlying technology behind Bitcoin (Blockchain) is FAR more revolutionary than Bitcoin itself and has thousands of potential uses... Bitcoin is just the first

  • Over the past 6 months, the markets have begun realising this as more advanced Cryptos have begun gaining traction e.g. the rise of Ethereum

  • Yet still, in the market there has been little shift, meaning a much larger shift is still to come

  • Overall, the market for the other uses of the Blockchain technology are in the beginning stages and they will continue to grow very fast

  • We can profit from this trend through buying these more advanced Cryptocurrencies built for more than just transferring wealth

  • Over the next several months, Cryptos which aim to make adoption easier for the average person will surge e.g. Tenx, Bitquence etc. and thus these are great investments

  • I will be releasing articles very soon about the MANY more incredible uses of Blockchain

  • In fact, tomorrow's article is all about Aventus... the Cryptocurrency which could leave TicketMaster and Stubhub for dead

I hope you guys have enjoyed the article and learnt a thing or two. I post high quality articles daily about Cryptocurrencies (which currencies to buy, where the market is headed etc.) and the other ways I make money online. Follow along if you’re interested :)


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Peace

Tom

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this post is so heavy

Or is this post so 'Heavey'? (my surname) ... I think even most dads would be embarrassed by that one.

@heavey
Very nicely compiled. This write-up shows how much time and effort you have devoted in your learnings about crypto currencies. Thanks for sharing. Upped and started following :)

Cheers pal... you should see my post for tomorrow if you think I've put a lot of work into this one! All about the Aventus ICO :)

What do you think about the decentralized cloud storage coins, Sia, Storj and MaidSafe?

That is a huge market and at least Sia is already offering cloud storage at the fraction of cost to the likes of Microsoft or Amazon.

Huge potential mate! Over the next decade, companies and individuals will be storing an exponentially increasing amount of data.

The blockchain brings the ability to store data at just a fraction of a cost of other methods. My only concern is that companies like Amazon beginning implementing their own blockchains, reduce their costs and maintain their dominant position in the market.

In the next year at least though, I can only see good things for storage-based cryptocurrencies... in particular; Sia.

For sure that is a valid concern. I would see it more likely though that Amazon would buy one of the cloud storage blockchain startups, just like they did with the grocery market and acquiring Whole Foods.

Good call on TenX and the like, I think any product that is mainstream consumer facing is going to be hot in the next year. Following!

Thanks mate. Yeah I think there is a huge market for it. In fact, I think we are currently undergoing a gigantic shift in the marketplace and we're still only near the beginning. Just think about how Bitcoin was virtually the only well known Crypto until recently so everyone is way too focused on the idea of transferring money online. The majority of people don't seem to understand how incredible the blockchain really is. Bitcoin is actually a relatively basic use of it. Mark my words, in 10 years, ownership of every house, car etc. will be stored on the blockchain also.

I fully agree!

I love your article and you absolutely nailed it about there being so many uses for cryptocurrency/blockchain(distributed ledger) technology! Your approach about finding those special cryptos that will have practical value in the future is also spot on. I present to you one such cryptocurrency, that is Swarm City (SWT). With their affiliated Chasyr app that is an Uber "up-ender" I believe it is the coin you referred to with the potential to reach $60billion market cap. Thanks! Resteemed!

Nice article. You made good points against Redd coin and other similar ones. I think in a way Steemit belongs to same category as well as ongCoin.io. I'm curious what you think about these two as they are for the social media as well but they already have working platforms and active community around them? Thanks!

ONG coins ICO has started...

Great read! Looking forward to reading some more of your posts. Love the knowledge and content you're putting out there. I'll be following so keep it up!

Good read.. but I can say a few that will be great coming out... I get your point though.. a lot will come and go.. it will be a swift shifting market for sure

A fantastic post 👏 keep up the good work 👍

Found you through FB, you have my full UV, so hard to find people who post high quality crypto content on Steemit. Who are your favourites?

Thanks for sharing @heavey, very detailed article and I liked it!

Thanks mate, plenty more to come :)

Interesting post thanks

Cheers bro, many more to come :)

Very good post. I am so inspired to integrate blockchain into my new app ! Just need to learn how haha :)

Next step is to learn how to code haha

To add to your point, another major thing that I look for in a coin is that if they have a product/app yet? ex: Tenx has a working debit card in testing phase.

Great posts and looking forward to more installments and insights.
I truly believe educating the masses about the benefits of cryptos will benefit us all and make the world a better place. Another plus side, the higher the adoption, the higher the market cap and our portfolios.
We all have a role to play introducing friends and family to adopt cryptos (without sounding like a pyramid scheme).
Once we see regular Joes using TenX cards and Bitquence wallets in stores and restaurants, we will know we are on for a winner!

Spot on with everything you say mate! It's going to be a very interesting next few years... especially for us involved relatively early!

Great article, something I thought about doing myself. I've shared to my FB page
https://www.facebook.com/thinkandgrowbtc/

I think this is the best post I've ever read at Steemit. You have done an awesome work, just analysing the top 100 cryptos is a really hard work I can't imagine analysing 500 cryptos! Really good job dude, new follower here!

Now looking at your work, I agree with your way of thinking. Blockchain is the next Internet, and everyday more and more important people is realising that (I remember an interview to Jack Dorsey, CEO of Twitter, where he talked about blockchain and he said the same)

I think we need to find that type of coins that right now are unknown, really cheap, with a great project, and there is a lot of coins with great potential. We should ward off coins like Litecoin, the copy of Bitcoin, Ubiq, the copy of Ethereum, etc, etc...

As I said before, great job dude!

Thanks mate! We're definitely on the same wavelength here :) I believe the market is currently undergoing a gigantic shift that started with just currencies and will end up as a MASSIVE range of Cryptocurrencies. I also think that we are still very early in this shift and thus many, many uses of the blockchain are in their absolute infancy.

We may have missed out on Bitcoin but there are a lot of coins with immense potential out there and I'll do my best to find them!

You should check out my post tomorrow about the Aventus ICO. They are attempting to infiltrate the ticket selling business which is, not only a huge business, it's also currently being served by pretty terrible companies... bots and crazy fees have virtually ruined the free market but places like Ticketmaster don't care because they are still getting paid.

When a market is being served so poorly by the current infrastructure, technology evolves and replaces the old systems... its time for Cryptos to take over.

The best bit is that Aventus is launching with a maximum cap of $15 Million which makes it 512x smaller than Ticketmaster. The potential to grow is unreal. However, as I will say in the article, I haven't fully compared it to competitors yet and, until I have done so, I cannot recommend anything lol

This post received a 3.8% upvote from @randowhale thanks to @heavey! For more information, click here!

Brilliantly written and compose article dude.

Thanks a lot for this great article! Nice to see you are mentioning Bitquence. I got in only with a litlle amount yesterday, will pick up more when the price keeps droppin :) Wish we already could use an app like they are develop. What I was wondering, don't you think there are much other companies trying to do the same as Bitquence?
Really looking forward to your next posts!

I'll be honest with you mate, I love the idea the idea of Bitquence but I don't really like to make recommendations unless I'm extremely well educated on the topic. I haven't studied the whitepaper of Bitquence or their competitors yet so I cannot say about them especially.

I was more just using them as an example of how I believe the category they are in is a rapidly expanding one :)

Honestly mate what have you actualy added to the debate here? You have told us there are alternative uses for crypto than wealth transfer. Go there Einstein. You make this huge claim to have studied 500 cryptos and yet you mention only a handful. You are going to have to work harder than that to convince people you have any clue

Lol there is always one person to criticise. Personally, I don't think many people actually realise that the blockchain has thousands of uses; not just currencies and smart contracts so I am attempting to inform people of this.

I only mentioned a few currencies mate because there's not exactly enough space to talk about all 500. The reason that I mention the 500 is because in my next posts I will exploring in greater depth some potentially great coins that I've found in this large group.

Can't please everyone I guess :)

When the mass population still has no idea what's going on/never heard of a blockchain. I think discussion of future applications is a great thing for people who do/have, and want to look to the next opportunity. Especially on a crypto based platform. This is one of the better blogs I have read.

This post has received a 5.67 % upvote from @booster thanks to: @heavey.

Nice post, just got to it (I'm quite new). Will read on what you're writing.
What are your thoughts on Polybius, LAtoken, etc. ?
I'm also amazed that people can't see the potential of Blockchain for so many industries/domains and the economies of scale that are possible...