PoW has scalability issues so market buys DPoS

in #cryptocurrency7 years ago

With Bitcoin fees at all-time highs and then Ethereum having trouble with the load caused by those nefarious Crypto Kitties, the market seems to have finally figured out that Proof-Of-Work maybe isn’t the best way forward when it comes to scaling crypto technology for adoption of the masses.

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In the last 3 weeks we have seen some pretty massive bids for the most established Delegated-Proof-Of-Stake coins which users here on Steemit should already be quite familiar with. Let’s have a quick look at 3 of them - STEEM, EOS and bitShares.


STEEM

Everyone reading this should already be familiar with STEEM and how it works. It is a Crypto which is designed to be used as part of a social media platform. Just 3 weeks ago it was around $1 USD per STEEM and today it has hit another record high of $3.88. That is a very impressive gain of 288%

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EOS

Still under development, EOS is being designed to be a blockchain for hosting decentralised applications in direct competition with the powerhouse Ethereum. Unlike ETH though, it will have very good performance due to using Delegated-Proof-Of-Stake instead of Proof-Of-Work so it’s not hard to see that the potential of EOS is enormous. 3 weeks ago EOS was priced at around $2.80 USD and it hit a high this week of $12.83. Another impressive gain of 358%

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bitShares

One of the original DPoS coins bitShares was designed to target the financial side of things with a decentralised exchange and price-stable currencies that are backed by bitShares as collateral. It also allows users to create their own virtual assets and trade them on the platform. It’s taken a while for bitShares to take hold and it has had a chequered past, but in the last 3 weeks it has gone from about $0.14 USD to a new high today of $0.65. Yet another impressive gain of 364%

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Are you seeing the common theme here yet?
288%, 358% and 364% in just 3 weeks!

I admit that a lot of alt-coins have rallied over the last 3 weeks but this out-performance by the most prominent DPoS coins is not just impressive, it is signalling the fact that the market is finally figuring out that PoW coins don’t have the scalability for mass adoption and crypto market participants are looking to DPoS as an alternative.

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This past couple of weeks has been fun to watch. I may have sold the majority of my cryptos but I still hold a few vested STEEM and a smidge of bitShares. I’ve been expecting Bitcoin to correct heavily and am concerned that it might bring down the rest of the market, but really I’ve been waiting for the right buying opportunity for these DPoS coins. I might have missed the boat but I guess that’s what you get for playing it safe and fighting the FOMO!

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Regardless of my own missed timing of the market, I am very pleased to see some of these great DPoS coins finally getting the support they deserve.


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Images and Credits
https://coinmarketcap.com
http://assimilationsystems.com
http://3.bp.blogspot.com
https://media-exp2.licdn.com

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We will definitely see growth in both Bitshares and Steem, both are so underestimated! I loved your thoughts on DPOS, thanks for sharing this!

You're welcome. I don't think there is any definites though. Still a lot of unknowns to emerge.

Thanks for the info. I myself am a fan of Steem and Bitshares. Could have bought earlier too, but still think they are winners.

I missed the chance to buy EOS at $4 ,and when the news of Bithumb exchange striked it never plunged.I think EOS will be the market leader when it comes to general adaptibility and usage..in a year or so we could see more and more DAPP emerging on EOS.What do you think?

Glad you agree. It will be interesting to see if the momentum can keep pushing these coins higher. I'll be very happy if we can just hold these gains.

I think we'll not only hold this value, but skyrocket overtime as people realize the superiority of these blockchains and their decentralized nature. Bitshares is so undervalued and underestimated and I think its just a matter of time before people start to understand that decentralized exchanges are so much better than centralized ones. Just look at the Coinbase ordeal with releasing BCH and accusations of insider trading...

Bitcoin cash and Iota are also looking really good at the moment.
Lets see how Thier prices will fare in the coming days.
Steem really good for the long term benefits.
Might even hit 100usd/steem mark.

Bitcoin Cash is an interesting one. Even though it is PoW I think it might be getting a bit of a bid too because of the scalability issues. The bigger blocks for now is helping BCH stay ahead of the transaction load.

I just got in the market about 2 weeks ago and this crazy surge in Alt coin prices has been nuts. Good tip about bitshares I'll have to grab a few. I already have the other ones.

Well your head must be spinning with all this action in the alt-coins of late. Don't forget to take some profits when the going is good.

I take my profits in silver :)

Very smart. In my next post I'll be explaining why I think so ;)

Yeah, my plan was to ride them long term, but I'm a poor gambler and never walked out of a casino with money.

It's never to late to learn or to change your behaviour.

Being aware of the issue is half way to correcting it!

Fun read. I got EOS for the win. Ethereum to me is like Sony, they invent the best stuff, but the market gets controlled by the uncle bill (gates) of the world.

What does the price have to do for you to jump back in?

Good question.

I want to see Bitcoin get smacked down because at the moment it is rubbish and it should not be the market leader. Reckon a big BTC drop would cause a correction across the sector due to all the BTC trading pairs and crash a few of the big scams like BitConnect and maybe Tether.

It would hurt sentiment a lot and maybe reset the current mania. Would be an awesome time to buy into DPoS coins at that point but I might be waiting for something that never happens :)

not when these hard forks are coming left right and center... Get ready for the Segwit 2x fork. https://steemit.com/bitcoin/@foovler/segwit-2x-for-real-this-time

I been picking up some eos here and there because it's cheap and i heard alot of ppl talk about it lol I enjoyed the read my friend 😎

Thanks mate. I really need to get set up on Binance or Bitfinex and get a decent wallet for EOS. It just seems to be getting away from me. I've also been meaning to have a play with the test net but I am a great procrastinator! :p

Hey man, I'm sorry to be that guy, I know it's super tacky, but if you are gonna sign up for Binance can you use my referral code. https://www.binance.com/?ref=12075252

I intend to review my entire trading setup, but it might not be until the New Year. I'll try to remember when I get to it!

I hate the fact that I knew about bitcoin when it was only worth $200, but didn't invest in it

You've got to forgive yourself. Nobody can really predict the future but the important thing is that you're paying attention now. That puts you ahead of 99% of the population and that should be a consolation :)

Learn from that. I started watching it at $10, and didn't buy any til it was at $50.
I was so disappointed that I'd missed out.

$200 is huge. I knew it when it was worth $1. And, I had no such trust in the digital currencies then. I thought of it to come and go. New knew it would have happened like this. But, no regrets.

You correctly mentioned the unbelievable gain in last thee weeks. I agree that bitcoin is expected to have some major correction in January 2018 but the other altcoins such as steem will not drop. It is my personal opinion.

You might be right there.

From past performance though, any time there has been a big drop in BTC it has affected all the alt-coins pretty badly. I wish it wasn't the case. Maybe this time would be different.

Unless, as you say, the market is starting to discern between PoW and DPoS.

I could be wrong about the BTC correction, or I could be wrong about alt-coins following it down. It's a bit of a no-win situation trying to predict it :)

That said, we are looking pretty red today so maybe I'm not too far off.

Have you read up on the hash rate death spiral threat?
Fascinating and terrifying.

Yes, I commented on how it might play out in my article 5 reasons I sold my cryptos BTW - I don't think BTC ever dies, it just becomes redundant once people realise there are better cryptos to use.

I've been learning a lot and your posts have always got me thinking!

Thanks man.

Thanks @jackmiller and you're welcome.

You've just paid me the highest compliment you can. I appreciate it.

I missed bitcoin in 2010. And then, I had no such trust in crypto or of the kind. I misread the change. No regrets. Now, I see every other thing, with better development team, to keep growing. And, Steem surely has that. I am as well trying to come to the game of crypto after missing good ones earlier. :)

As long as you're focused on learning and using the technology you can't really lose even if you come in late to the party. If you're careful with your investments and never invest more than you can afford to lose then at least you are giving yourself a chance to succeed but it's important to understand the risks.

Nice write up! One POW crypto which doesn't have scalability issues in Verge Currency $XVG, up 2000% in two weeks.

I am not familiar with Verge but maybe it is riding the same wave as these DPoS coins. Still, up 2000% in 2 weeks sounds like a good time to sell, not buy.

What if it goes to $15?

Is that FOMO asking? :)

Seriously though, I can't really comment because I don't know the coin or it's fundamentals. Maybe the rise is justified, but frequently as a contrarian when I see a rise like that I sell. That's a pretty sweet profit to book in and I don't like to be greedy.

A missed opportunity doesn't cost you anything, but holding through a correction gives you a loss. It's risk/reward stuff.

I don't think Verge Currency is a missed opportunity. Even at $2b valuation, it is still undervalued in my opinion.

Indeed true, I maybe missed Bitcoin a few years back but I'm lucky enough to enter at steemit.

Congrats. Everyone on steemit has good reason to be happy right now. I hope it continues!

Such impressive rise in market value and judging from it's momentum we can expect it to continue rising. I wonder in 5 to 10 years will it reach the height bitcoin had reached today? I have my fingers cross.

Will be interesting to see. 5 to 10 years is a very long time and I personally think the crypto space will look very different to what it does today. Even EOS might be old news by then....

Thanks for the info about EOS - I bought when it was 1$ because a friend told me I should. But I considered selling. Now I understand why I shouldn't do it and I am gonna hodl.
😁 so thanks a lot!

Remember, I am not a financial adviser. Glad to have helped you with some info on EOS though and I hope it works out well for you.

I knew when Bitcoin started I was in college and I saw it as a child's play. I regret every not buying then. I opened my Steemit account in October left it and didn't do anything not until dis month and someone told me to buy Steem dollar then it was less and a dollar I still ignore but right now I am all in for any crytocurrency as long as it is found in the coin market

Well, just be careful. There are A Million Ways to Die in the West.

Big Question Mark On Scalability Of Steem

Just read my post and comment on your views https://busy.org/steem/@vikasjaat/the-big-question-mark-on-steem-scalability

Want to hear from you all...

Very interesting. I haven't done serious blockchain analysis on STEEM although I do know it has the highest transaction throughput of the entire crypto sector. Considering some of the wordy content that needs to be stored on the blockchain it is no mean feat.

Thank you for such useful information. I plan to keep BeatSnares in the investment portfolio, but in addition to this I believe that we should pay attention to other alcoins, for example, I see prospects in Ripple, Waves, but these prospects will be concluded not in trading but in long-term investment. .. next year will definitely be a green year of growth;)

There are no definites in crypto but I wish you the best of luck with your prospects.

Missed out on bitshares... judged it wrongly... o well, life goes on..

I think Bitshares is still low in price... so if it looks good to you, buy a some with the SBDs you get here on Steemit. That's what I've been doing for the last couple months and I'm very glad I did.

I bought eos wid it. I think i might hodl it now till it values at $100 LOL...

Good information useful for people getting into all this. Followed you and good pick on #bitshares ... Thanks Upvoted and Resteemed:)

wow..

thats a great post..

keep it up..

thank you @ buggedout

Some good insights - thanks :)

From the post you made, I learned or learned something new that I did not know before. The information that you have on this post is very useful for many of us. So I hope your post will be very helpful for us. So you'll definitely post beautifully for us.
thnx for share this informative post

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