Which high-quality minority coins are likely to break through and become mainstream cryptocurrencies?

The veterans who often visit the currency forum may have heard a sentence: long bitcoin, short all the alts. The meaning is obvious, the status of Bitcoin is almost unshakable, but the mainstream currency has changed from wave to wave.

Blackcoin, Futurecoin, and PPcoin that were hot in the early years have now been thrown out of the mainstream currency rankings, and almost no one cares. According to coinmarketcap data, only Litecoin, Dogecoin and Ripple in the top ten market capitalization list survived and are temporarily among the mainstream coins.

The picture shows the cryptocurrency quotation of an exchange in 2014. In 2017, the exchange suspended its services.

After experiencing generations of cryptocurrency, what would replace the present-time mainstream cryptocurrency?

The data above is the top 20 in the global market capitalization so far, and the data comes from coinmarketcap. We can see that bitcoin is still at the top of the ranking, and there are many new faces in the ranking after 2017.

From the perspective of the number of cryptocurrency types, platform coins for 15%, Bitcoin and its fork for 15%, digital cross-chain assets and platforms for 35%, stablecoins for 10%, and the remaining digital payment for 25%. Of course, this kind of statistics is not scientific, because the statistics are only based on the number of rankings, without taking into account the weighted impact of market value, but we can still glimpse the market trend of cryptocurrencies in recent years.

The earliest cryptocurrencies are not as complicated as they are today. They are just a cryptocurrency and have no other role than payment. Through the latest cryptocurrency rankings, we can understand that cryptocurrencies are moving towards diversification.

Since the cryptocurrency broke out in 2017, we have heard countless concepts: cross-chain, decentralized operating system, decentralized Internet, DEFI, DAO… Some of these concepts have evolved into reality, some concepts are on the way to becoming a reality.

We can say that 2018 is a watershed moment for this industry. Cryptocurrencies have stepped out of the pure P2P payment field and are moving towards a diversified ecological development.

So, back to the topic, what is diversification, how do we judge whether a digital currency has the conditions to enter the mainstream currency?

I think that the basis for judgment is very simple. The following points are for your reference:

First, the distribution process needs to be transparent and fair. If there is an institutional investment, can the organization’s bargaining cost and time cost adapt to the project development, and how can the organization be prevented from cashing out in a short time? If there is no institutional investment, is the amount of pre-mining of the project reasonable, or is it fair to users holding currency?

Second， whether the project has market demand for corresponding industry solutions. Not all industries in this world need blockchain. Recognizing the reality that blockchain is not a panacea is the primary condition for entering the cryptocurrency market.

The third point is whether the project has a certain foundation. The foundation here includes two aspects: community foundation and cardinal basis. It is recommended to identify the project from these two aspects.

I have been observing the digital currency market for a long time. Among them, a mining currency ETX (Ethereumx·NET) with a POW+DPOS proof mechanism has attracted my attention. After understanding that the currency is not pre-mined, the distribution mechanism is very fair.

In addition, there is an optional anonymous transfer mode, which protects the privacy of users to a greater extent than ETH. On this basis, you can also undertake ETH dually: undertake ETH2.0 elimination of computing power; seamlessly transplant all application ecology of ETH. The most remarkable thing is its dual economic model of POW+DPOS, which locks a certain circulation and distributes newly-produced coins fairly, stably increasing the value.

Cryptocurrency is a thriving world, but it is also a dangerous world. Welcome to follow me and explore potential projects. There are risks in the market, so you need to be cautious when entering the market.