Tuesday, May 30, 2017

1st Crypto Roadblock

I've encountered my first cryto roadblock! It is an interesting one, to say the least, and one that can only actually be discovered with 1st hand meddling and play around with the currencies.

I had discovered about the Ethereum name service and I wanted to snag a name for myself, but doing that would require paying for it in Ethereum. Based on what I saw, it worked out to be about $3, not bad to be able to reserve a future address like GMGH.eth so that it is easy to receive funds in the future if it really takes off.

I bought $10 worth of Ethereum (ETH), just to play around with. I had heard that transaction costs were about 4 cents.

Oh boy was that outdated information. That was true if ETH was $10. At $150+, the transaction cost is actually closer to $0.60USD... or $1!

The exchange of course charges a fee to change $$$ into digital currencies.
Then to transfer out the currency also has another layer of fees.

Just buying the currencies and moving the money out cost me $3!

After I got my $7 out, bidding for my .eth name and paying for that transaction was another $5.80.

Now I have a balance of $1.20!

Ugh, it's quite steep. I thought transferring in digital currencies are supposed to be cheap. What happened?

Well, see that's where I make mistakes and try to learn from them and also share the information with everybody!

Average BTC transaction cost in SGD: $5.00 and 40 minute confirmation
Average ETH transaction cost in SGD: $0.81 and 1 minute confirmation
Average LTC transaction cost in SGD: $0.16 and 3 minute confirmation
Average DASH transaction cost in SGD: $0.10 and 1 minute confirmation
Average DOGE transaction cost in SGD: $0.01 and 1 minute confirmation

BTC is not only freaking expensive, it also takes forever to confirm.
ETH is the next most expensive (but still cheap by a long shot), but confirmation is a lot faster

LTC is at pretty acceptable levels of cheapness, but confirmation is slightly longer.
DASH is actually cheaper than LTC, and also has a faster confirmation time.

DOGE is crazily cheap with a very good confirmation time as well

Sources: bitinfocharts

DOGE obviously looks awesome, since it is not only cheap, but also very quick at confirming transactions. It has extremely healthy market volumes too, so it's not just a joke. However, it is still a POW system and its joke status and history is a pretty good reason why it's not being adopted on a massive scale. It is also tied to LTC and it is only surviving because of it. It has endless, but reducing inflation, not sure if that's a good thing (prevent hoarding vs. inflation).

DASH and LTC both seem pretty close to me, but my stats on them differ wildy. Coinmarketcap puts LTC volumes at a whooping 17% of market cap, while bitinfocharts has it has just 3.25%. For DASH, coinmarketcharts has it at 4% and bitinfocharts confirms it with 4.25%.

However, it does seem like LTC does have very high volumes, which is due to Chinese miners. LTC has implemented Segwit, as such, LTC has boomed from $5 to $35. With the upcoming lightning protocol brings in XCTx, it seems like LTC could run up even more. It actually really seems very promising.

DASH has its hybird POW/POS model going for it. Even though it's a later player, it has already climbed all the way to be just being LTC in market cap. The volume of DASH leaves much to be desired though.

It is painfully obvious that BTC is losing its edge. ETH has already pass the 50% mark when compared to BTC. However, it's high transaction costs is going to be a problem. Then again, when compared to BTC, you can see that ETH is BTC, but better, faster, cheaper and with more uses.

Unless BTC can make some major radical changes, I wouldn't be surprised to see ETH take over BTC in a very short period. Maybe by 3Q? Might be a good time to jump onto the ETH train.

Are there any crypto investors out there that want to have some discussions or point out any mistakes or flawed thinking that I've made so far? Reach out to me in the comments, email or encrypted email!

2 comments:

  1. what platform did you use to get started to trade cryptocurrencies?

    ReplyDelete
    Replies
    1. Itbit, Coinbase, Coinhako.

      I'm not sure about the rest, but the ones I've stumbled upon look terrible.

      Delete

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