How to Analyze Cryptocurrencies?

Here is an interesting method…

I found it at the Bitcoin University channel, and somehow this video has altered my desire to acquire certain cryptocurrencies.

So this new Kaspa has this thing called the ghost protocol (Kaspa the friendly ghost 👻) that basically solves the trilema of cryptocurrencies. Guys, I am not very keen on the technicalities of the software but I am very interested in monetary theory, what is money, what is sound money? And the trilema is basically this:

I somehow do not get why these should cause a dilemma. Scalability is basically about the ability to divide the “coin” into smaller units, for instance Bitcoin is divided into 100 million satoshis. Bitcoin would have to get really expensive for its scaleability to be threatened. They say that Kaspa means silver in Aramaic. The authors of Kaspa are trying to sell it by saying that this is silver to Bitcoin that is gold. Bitcoin is not gold, BTC is a fucking software, and silver is shit. 💩

Historically, silver coinage appeared to make gold scaleable. Every gold coin was worth some amount of silver coins, and silver coins could be divided into copper coins. Every land had a different standard of minting coins, and international exchange rates must have been a nightmare. Gold is a proper precious metal, along with platinum, palladium. Although, I am not sure the other two do not oxidize…

Pure silver also does not tarnish in normal temperatures. But silver is more abundant in nature than any of the other metals mentioned above. I am taking Litecoin from the list of cryptocurrencies I want to acquire. Billing your coin as silver to Bitcoin doesn’t work here.

Another issue is decentralization. Currency should be neutral as possible, it should not be tied to a single entity. Cryptocurrency should not be issued by a bank, crypto exists to circumvent banks. I am wary of coins linked to exchanges like Binance. Kaspa is apparently developed by a team of Israelis and the founder posts pro-Israel tweets.

I personally have nothing against people harboring biases based on ethnicity, this is quite a strong thing. But in this respect, Kaspa has nothing on Bitcoin. We don’t even know, who Satoshi Nakamoto, the founder of Bitcoin is. Nobody has ever seen Satoshi, he doesn’t tweet. It is presumed he owns like million BTC but has never moved his coins. What’s he gonna do with all that Bitcoin remains to be seen. I don’t care if he sells it all, and the price drops, I will pump my financial reserve into it. Trust me, much bigger fish will scoop up that Bitcoin even faster.

Also, there seems to be space for one or very few cryptocurrencies at the top. I think BTC will remain the undisputed ruler but there are other interesting projects that have qualities people find appealing like anonymity of payments like in Monero. If you want a coin that will likely preserve its value, go for Bitcoin, it has a limited supply of 21 million. For instance Pepe coin has the supply of 420 billion (420 😆) coins, and people are wondering whether its price will ever reach $1.

There are some indicators one should follow. The market capitalization and number of transactions in a given cryptocurrency. Either of these indicate a future success of the cryptocurrency but they are an indicator of current adoption. Adoption is very important, basically, there isn’t a space for the myriad of cryptocurrencies there currently are. However, I do leave room for a particularly good cryptocurrency bursting on the scene and becoming really popular but BTC kinda kicks ass and is used everywhere.