Cryptotips George Shnurenko

How to Become a Blockchain Developer and Get Great Salary

💡 Cryptotips
Research states that there’s a widespread demand for Blockchain developers. Are you interested in becoming one?
How to Become a Blockchain Developer and Get Great Salary

People keep saying that technology is here to take our jobs, but tech keeps proving them wrong. A recent study carried out shows that for every 14 new job offerings which require the skill of a Blockchain developer, only one developer is available to fill this position. This is in addition to the fact that the $/knowledge ratio for the role soars daily.

As enticing as this sounds, the question going on in your mind is obviously about how to be a Blockchain developer so you can start making an amazing salary. Before this, let’s see the different skills and the knowledge required to become a Blockchain developer.

What is a Blockchain developer required to do?

A Blockchain developer definitely plays a major role in the digitization of our world today. Think of developments such as cryptocurrencies, smart contracts, distributed databases, platforms for ICOs, and e-voting systems. All these are possible because we have experts who are adept in Blockchain technology.

To start with, there are certain fundamental concepts which you should have a good grasp of before considering a career as a Blockchain developer. Some of the concepts are explained below.

  1. What is Blockchain? Blockchain is the general name for a chain of blocks with each block holding important pieces of information about a transaction or operation.

  2. What does decentralization connote? Decentralization means that the information or the different details of the transaction are not stored in a centralized hub.

  3. What is a consensus mechanism? Consensus mechanism is the process by which a transaction on the Blockchain network is confirmed and authenticated.

  4. What is mining? This is the underlying process surrounding how blocks are linked in the network.

Depending on the applications you’ll be building, you might be required to learn other aspects of Blockchain. For example, if you’re thinking of how to become a Blockchain developer and your interest is in ICOs and financial services, you will require training in the economics of cryptocurrency. In fact, you might want to learn about other popular currencies in the sphere. Acquire knowledge about Bitcoin here.

💼 Related Article
WikiCoin: What is Blockchain Technology and How it Works
🔥 Hot
9 months 2 weeks
256
WikiCoin: What is Blockchain Technology and How it Works

Considerations for a Blockchain developer

As earlier stated, a Blockchain is renowned for the strict adherence to security, anonymity and speed f transactions. This might make it appear as though the demands of the job are enormous. However, it really isn’t. You just need to take note of certain important factors in the process of coding. What are they?

1.The security of the Blockchain network

If there’s something we all agree on about the Blockchain network, it is the security it offers. The transactions are recorded with a timestamp and are immutable. It also requires either Proof of Stake or Proof of Work to verify transactions on the system. This makes people perceive the Blockchain network to be a secure fortress. However, it isn’t always so.

One thing you should note is that the code is open-access, readily available to the public. This means other Blockchain developers with sinister plans can easily check your code for bugs and vulnerabilities. If there’s any slight chance to exploit the network, it is possible that they hack into the system and disrupt a lot of things. This is why Blockchain development takes a lot of time- code testing, debugging, and deployment.

2.How to manage the resources

Once we’ve sorted the issue of security, another challenge is getting how to keep pace with the network. Remember that the system is decentralized and it requires consensus to validate transactions. Think of what will happen if the resources are not well equipped to cater to remote queries.

3.The performance of the Blockchain network

When you think of Ethereum, Ripple, NEO, one thing that comes to mind is the supersonic speed which is at play. This is why they find application in financial institutions and the reason for the public’s acceptance of the technology. As a Blockchain developer, know that there are certain tasks which are parallelizable and others aren’t.

For example, it is possible the digital signature verification task is one which is parallelizable since it only requires the key, transaction, and the signature. But others might not share this attribute.

4.Isolation

Isolation is what causes deterministic behaviors to be upheld. To explain this, let’s reference our hashes. The same way we had variables which were immutable (e.g. X + Y = Z), a hash shares the same attribute. Hash functions are regarded as deterministic and this is because they cannot be altered.

Blockchain developer skills

According to market analysis, here are three skills every employer wants in a Blockchain developer.

  1. Hyperledger Fabric

  2. Ripple Development

  3. Solidity

Blockchain developer salary

When you consider the fact that companies like Bank of America, JP Morgan Chase, and other highly esteemed corporations are exploring the Blockchain market, your eyes will be open to the opportunities that abound. It is reported that Blockchain developers in the US earn almost $130,000 yearly.

The general average reported was $91,528 and this beats the earnings of an engineer and an application developer ($89,091 and $85,637 respectively). This is the result of extensive data collection and processing carried out by Burning Glass Technologies.

Conclusion

One thing is certain, you won’t become an expert overnight. Neither is there any assurance that you’ll begin to take home millions of dollars monthly. In fact, as opposed to what the media feeds, you should tone down your expectations and be ready to go through several rough patches.

The suggestions offered here do not work like magic pills. You do not just take it and then you instantly see the results, rather, it takes time, patience, and perseverance. Keep at it, and you will be proud of the blockchain developer salary you earn on the long-run.

Have a great run!

Cryptotips
views
👓 Recommended articles
Patrick Thompson

The Bitcoin and Ethereum February Report

How did Bitcoin and Ethereum perform during the month of February?
The Bitcoin and Ethereum February Report

Bitcoin

The month of February has come to an end. That being said, let's take a look at how Bitcoin and Ethereum performed from the beginning to the end of the month.

According to CoinMarketCap.com, on February 1st, Bitcoin was valued at around $8,690.12. Unfortunately, this number supports the down trend that we have been seeing in the Bitcoin market since Bitcoin hit it’s all time high on December 17, 2018. The Bitcoin price on February 1st is over $1,000 below the price from the previous day – January 31, 2018. This represents a nearly 16% decline in the price of Bitcoin from the last day of January to the first day of February.

Over the course of the month, Bitcoin hit a high of $11,894.40 (February 20th), and a low of $6,162.04 (February 6th). On the last day of February – Feb.28 – Bitcoin was valued at $10,489.80. The differential from Feb 1. to Feb. 28 represents a $1,799.68 increase in price, this is equivalent to a nearly 21% increase in value.

Ethereum

Ether started the month of February with a price tag of $955.23. Unfortunately, in the same manner as Bitcoin, the value of Ether on February 1st supported a downtrend that we had been seeing in the Ether market since Ether hit it’s all time high of $1,426.34 on January 13, 2018. On the last day of January, Ether was worth $1,426.32. The differential from Jan. 31st to Feb. 1st represents a $471.11 drop in the price of Ether – this is equivalent to a 33% drop in value.  

Over the course of the month, Ether hit a high of $976.88 on Feb. 3rd and a low of $582.04 on Feb. 6th. On the last day of February, one Ether was worth $862.78. The differential from Feb 1. to Feb. 28 represents a 9.6% decline in the price of Ether which is equivalent to a $92.45 decline in price. Unlike Bitcoin, Ether finished the month in the red, representing a loss in value from the beginning to the end  of February.


 

views
👓 Recommended articles
Cryptotips George Shnurenko

10 Best Cryptocurrencies to Invest in 2018

💡 Cryptotips
This is a guide on how to invest in digital currency
10 Best Cryptocurrencies to Invest in 2018

Ever since Blockchain technology emerged as a viable technology, we have had several currencies available for purchase. Some of these currencies have immense potential and have soared beyond expectation. Others have been incredibly disappointing and cryptocurrencies like these make questions like “Should I invest in cryptocurrency?” pervasive.

Surprisingly, the top cryptocurrencies to invest in are not necessarily the most common cryptocurrencies you know. Admit it, when you just heard of cryptocurrency, you called every other digital coin Bitcoin. A highly knowledgeable individual will, perhaps, name Ethereum and Litecoin. However, these coins might disappoint you.

This is a guide on how to invest in digital currency and it will show you which cryptocurrency to invest in. However, before we get to that, it is important to understand the concept of investing in cryptocurrency. Let’s answer a few questions, consider a few factors, and help you come up with the best investment portfolio.

💼 Related Article
Where to Spend Your Crypto Earnings in 2018
🔥 Hot
7 months
256
Where to Spend Your Crypto Earnings in 2018

Investing in cryptocurrency

Just like stocks, real estate and gold, the decision whether or not to invest in cryptocurrency is a well-calculated one which can’t be coerced, induced or rushed. You are solely responsible for the losses you incur. You also get to enjoy any profit you make (after taxing your cryptocurrency gains though), hence, it is important that you come to the conclusion yourself.

Does this mean that you need no help with identifying the best cryptocurrency to invest in? Absolutely not! In fact, this is where you should rely on others the most. Before you invest, you need to understand your investment goals, outline them, speak to an expert about it, and then begin work on achieving it.

You will need to answer questions like, “How soon do I want to enjoy profits?” “How much do I have to invest in cryptocurrency?” etc. The answers to these questions are what will give you courage and drive to forge ahead when the going gets tough.  

How to invest in cryptocurrency

Before we go ahead and splurge money on the best digital currency to invest in, you are required to know the basics of investing in cryptocurrency. Here are some points to get you started.

Long-term cryptocurrency investment or Short-Term?

As earlier mentioned, cryptocurrency is just like the traditional assets to invest in. You can choose to buy it and hold it for a very long time or sell almost immediately. How you invest depends on what you want from the market although, long-term investments are known to be more viable. Also, timing determines whether to hold a crypto for so long or sell.

Consider the case of Bitcoin. It entered the market in 2009 and for a very long time, the price rose slowly but steadily, until 2017. Bitcoin saw an astronomical increase, seeing its value almost peak at $20,000, and then it plummeted without any warning and we have been waiting for its rise ever since.

Does this mean that the best cryptocurrency to invest in is a fledgling currency which has achieved a modicum of fame and is at a reasonably low price? Well, not really. But, it’s worth giving a try. Let’s go through some of the attributes of cryptocurrencies and questions to ask before making a long-term investment.

  1. Do you plan to sell the cryptocurrency after a period of time or after it peaks at a price?

  2. Do you aim to sell your cryptocurrency asset at once or gradually?

  3. Is there anything that’ll make you sell off your cryptocurrency abruptly?

  4. What’s the maximum loss you’re willing to incur?

  5. How much profit are you hoping to make?

  6. Do you have the patience to read market analysis and follow news reports?

These should set you on course and help you make the right decision. In case you aren’t satisfied, this should do the trick.

💼 Related Article
Top 10 ICOs by Funds Raised, From Filecoin to TRON
🔥 Hot
6 months 4 weeks
256
Top 10 ICOs by Funds Raised, From Filecoin to TRON

Why you should make long-term cryptocurrency investments

  1. You should make long-term investments if you have idle funds and you are willing to leave it like that for a long time.

  2. If you believe in the future of the company, invest in the company

  3. If you have sufficient evidence that supports the growth in the long term, go for long-term investment.

Why you should invest for short-term purposes

  1. If the company just launched their ICO you can enter the market cheaply.

  2. If you can vouch for the veracity of your online sources, go short-term.

  3. If there’s a very low market capitalization, don’t think of buying for long.

Now that you know a bit about investing in cryptocurrency, we can think of going ahead to some of the top cryptocurrencies to invest in. However, you might want to consider the cryptocurrency market so far.

💼 Related Article
Top 10 ICOs by Funds Raised, From Filecoin to TRON
🔥 Hot
6 months 4 weeks
256
Top 10 ICOs by Funds Raised, From Filecoin to TRON

The current state of cryptocurrency markets

It all started with Bitcoin in 2009. Litecoin and Ethereum quickly joined and fiercely competed with Bitcoin for a share of the market population. In about nine years, we’ve had several cryptocurrencies come on board but none has enjoyed the surge Bitcoin enjoyed in 2017. The price increased by almost 4,000 percent, bringing its market capitalization to about 450 billion dollars.

We have also had about 3,000 new crypto coins in the market with each of them claiming that they’re the next best thing after Bitcoin. Unfortunately, many of these coins go extinct before they even launch. In fact, a study carried out by Deloitte showed that 92 percent of Blockchain projects which were launched between 2015 and now failed. This makes it important to carefully consider what cryptocurrency to invest in before putting your money.

Figure 1: Showing the growth of cryptos since 2013

The best cryptocurrency to invest 2018

Knowing which cryptocurrency to invest in might prove very difficult if you are not familiar with these currencies. There are different metrics used to judge and ascertain the best currency to invest in. You cannot afford to make investment decisions based on sentiment or emotions. You should only look out for the best altcoins to invest in.

Thankfully, you do not have to look any further, they are all here.

Ripple (XRP)

Believe it or not, Ripple is on to great things. Those who invested at the beginning of 2017 are certainly smiling to the bank as we speak, however, that’s not where it ends. Ripple is still arguably the best cryptocurrency to invest in 2018. It will be unwise to discard Ripple because of its low price at the moment. In fact, this low price should make it attractive to long-term investors.

When you consider the fact that Ripple has a total market capitalization of about $35 bln, you realize that it has a lot of potential. This potential is largely attributed to the fact that Ripple, apart from being a digital currency, is a means of making payment. Not only are the transactions secured via Blockchain technology, they are also completed in record time, beating Ethereum to its game.

One more thing about Ripple, some of the largest financial institutions in the world make use of Ripple for their business. JP Morgan, American Express, China LianLian International, and even the Saudi Arabia Central Bank all use Ripple technology. Ripple is your answer if you have questions like, “What cryptocurrency should I invest in 2018?”

Ethereum (ETH)

Let’s track Ethereum’s growth in the last one year. In 2017 alone, the price of Ethereum skyrocketed by almost 3,000 percent, a move which saw it become firmly entrenched as one of the best cryptocurrency to invest in.

Towards the end of 2017, the price of ETH hovered around $720 and the market capitalization was put at $70 bln. Right now, it has almost doubled in price and the market capitalization saw a similar astronomical increase. Ethereum is practically calling out to you to make that investment, will you heed the call?

Bitcoin (BTC)

We cannot discuss the best cryptocurrency to invest in without mentioning Bitcoin, it’s a sin. Even though the price has plunged in recent times, it has managed to still remain one of the forces to reckon with in the crypto world.

Many people are of the opinion that the first remains the best and this will cause Bitcoin to remain relevant for a long time. Others who are not as excited about Bitcoin will just go ahead and discredit the currency. You should, however, note that you need heavy backing in terms of funds in order to enjoy any appreciable gain when you trade Bitcoins.

Litecoin (LTC)

What’s the best cryptocurrency to invest in which will give you a Bitcoin-like experience minus the exorbitant cost? Litecoin! What is it about Litecoin? Well, like Bitcoin, it also saw an increase from $4 to $358 in 2017. In a similar fashion, 2018 saw it crash to almost $100, but the coin persists.

One reason for its worldwide adoption is that Litecoin constantly betters the technology of Bitcoin. If Bitcoin completes a transaction in 10 minutes, Litecoin will do it in two minutes, 30 seconds. The cap of Bitcoin is fixed at 21 mln, Litecoin has its maximum at 84 mln. They have also advanced on to greater achievements. In 2017, this currency completed a Lightning Network transaction, transferring a fraction of a Litecoin in one second.

💼 Related Article
What Can You Buy With Bitcoin in 2018?
🔥 Hot
7 months
256
What Can You Buy With Bitcoin in 2018?

Zcash (ZEC)

Although ZCash is relatively new to the market, they have covered a lot of grounds in their short time here. The company has a forward thinking-founder and CEO, Zooko Wilcox-O’Hearn and they continually release statements detailing their long-term plans of expansion and growth.

At the moment, ZCash has 21 mln coins in circulation and every transaction made is published on a public Blockchain. Apart from this, it is possible to enjoy a level of anonymity when you transact on Zcash. In fact, investing in cryptocurrency has been made easy with ZCash as it gives you a detailed report of the different transactions you have carried out.

Dash (DASH)

Digital Cash is one of the top five cryptocurrencies to invest in, here’s why. The market capitalization is at $4.8 bln even though they just kicked off in 2015. Within this short while, they have consistently handled about $100 million worth of transactions daily. Why do they enjoy such volume? They are trustworthy, secure, and safe to use.

Monero (XMR)

This currency is tipped to become one of the best cryptocurrencies to invest in by 2018. It is one of those currencies with immense potential which is yet to materialize. What makes it so ideal is that it is very private and secure. Unlike conventional forms of completing transactions, Monero uses ring signature. If you like unique, this should be a great cryptocurrency to invest in.

IOTA (MIOTA)

Guess what? IOTA is completely free to use. This is possible thanks to the special Blockchain architecture which allows transactions to be made on the IOTA platform. The company is in partnership with firms like Microsoft, Fujitsu and Deutsche Telecom. All these give you the assurance that your investment is in safe hands.

Steem (STEEM)

You might be familiar with the blogging and social media platform, Steemit. They have decided to expand and venture into cryptocurrencies. While carrying out normal activities such as creating blogs, writing comments, etc. tokens are awarded. This token, in turn, can be used to pay for other things on the platform.

NEO (NEO)

When we talk about Blockchain technology and innovation, two names come to mind- Vitalik Buterin and Da Hongei. The former founded Ethereum while Hongei came up with NEO. The NEO technology is underpinned by a Delegated Byzantine Fault Tolerant system and this adds sophistication to the system. It also has an improved proof of stake tech. All these make the NEO a very attractive cryptocurrency to invest in.

Conclusion

There you have it, “what cryptocurrency to invest in” is no longer a valid question, you have 10 to choose from. Investing in cryptocurrency might be a very complicated and tiring process, however, the end justifies the means.

Cryptotips
views
👓 Recommended articles
Wikicoin Cyril Gilson

How to Make Your Native Advertising Most Effective with U.Today

📚 Wikicoin
We could fix you a media cocktail with just the right mixture of ingredients. Pour, shake and serve!
How to Make Your Native Advertising Most Effective with U.Today

U.Today is one the most fast-growing media outlets in Blockchain and cryptocurrency industry today. 

U.Today offers not only advertising that consists of a variety of services, including native advertising, but also full PR support and promotion for your business among the Blockchain and cryptocurrency audience.

Contact us right now: [email protected] and get the most beneficial offer.

Our Services

Press Releases

You got this very special product you want to promote and you want to get the most for your money. With U.Today, there’s nothing easier.

Just click https://u.today/press-release/submit and fill out a simple form. It lets you select at your convenience the timing of publication which allows you to get maximal exposure. In just a few moments, you could upload your logo and all the information you think will appeal most to your prospective audience.

Our Press Releases section has a prominent position on the landing page so you can be certain our readers won’t skip it.

Sponsored stories

Of course, writing effective advertising texts is a special art that requires knowing some nuts and bolts of the trade. Also, we are all consumers ourselves and we know what it is like to be bombarded with advertising messages throughout the day.

We’re not waking up in the morning just wondering when the next press release is going to come. So you may need to get prepared to find that unique differentiator that makes your story more important than every other story coming. If that’s what you honestly lack don’t worry.

U.Today will help you find professionals with special competences who can make your story shine. They will lead you through all the snags and make sure to highlight all advantages of your product to your target audience.

Our best authors who focus on just what you consider special and distinctive about your business will write a full feature story starting from 400 words or, when needed, their series.

Our account managers will help you through the whole process, take your feedback and send you the story for final approval. All the details will be considered and accounted for, and if you got your own text as a basis for a rewrite, we’ll help you improve it to be most effective.

The resulting story will appear on the site in an appropriate section, marked as sponsored.

Native advertising articles

Of course, you can create a still more effective content using the approaches of native advertising, that is making your story newsworthy by its own merits as a part of larger trends important to your prospective customers.

By doing so, you will put the readers’ interests first as the content that you create is going to resonate with them much more fully and really have a much bigger impact.

Our staff is ready to help you do exactly that. We will conduct market research to fully observe the trends and problems facing your prospective customers.

Then our best-handpicked authors with an established reputation will write a 500-words or more featured story or a series and make your product a part of the solution.

Analytics and long reads

You don’t want to create something that’s relevant for a week and then drops off the map. So the analytics piece or a unique long read is probably what you need.

Our analytics will make a thorough study of the market and the niches where your business interests are presented.

Note that our journalists can make a difference by their professional skills of finding reputable sources, research studies, expert quotes or data to back up what you’re saying.

Other native advertising options

You may think that writing is not rocket science but in fact, thinking like a journalist is one of those things that’s kind of hard to teach, and a good story is close to impossible to write without this gut feeling.

Our staff is ready to help make your content the most effective by providing it with all professional tools of the trade. For example, good infographics can render complex hi-tech products in a simple visual manner, making it stick to mind.

Quizzes, games and other tools for creating the high-quality content can also be offered to highlight the better sides of your product.

Outsource your content creation

You may need to solve a bigger problem then preparing a story or its series, especially if you get a flow of information to be used in your product promotion.

We can help your PR department to create any number of materials of any complexity to be published in various media outlets across the globe, including the most respected ones, and in the social media.

Complex PR campaigns

The maximal impact could be achieved only by smart usage of various formats and media channels. We could fix you a cocktail with just the right mixture of nature advertising different ingredients. Pour, shake and serve!

Our team

U.Today is a close-knit team of professionals founded by editors with extensive experience in both high-quality journalism and the crypto industry.

Tens of our staff and contributors come from the US, Europe, Asia and all corners of the globe. They have covered all aspects of the industry and community and developed some very successful media projects.

Wikicoin
views
👓 Recommended articles
Darryn Pollock

Top 10 Trading Pairs on Binance and Bitfinex Show Interesting Exchanges

Binance has a number of odd and obscure cryptocurrencies among leading pairs; Bitfinex shows mainly crypto to fiat exchanges
Top 10 Trading Pairs on Binance and Bitfinex Show Interesting Exchanges

Darryn Pollock, Alexander Goborov

Binance has been in the news for sometime now with its listing acceptance for a number of smaller and lesser known coins, some of which are now being donated to charity. They have been happy to accept all comers, but what is more surprising to see is that some of these smaller coins are making a big splash in trading numbers.

A look at the top 10 trading pairs by number of transactions on Binance shows the usual players at the top; however, one might see it strange that Tether tops the trading numbers:

Top 10 Binance
Top 10 Trading Pairs on Binance and Bitfinex Show Interesting Exchanges

BTC (Bitcoin) / USDT (Tether) has by far the biggest trading numbers with ETH (Ethereum) / BTC  and ETH / USDT following. But not far down that top 10 list, there are appearances for coins like Red Pulse Phoenix (PHX) and Airswap (AST) which are closer to 200 than 100 on the market cap ranking.

These more obscure coins are being traded for BTC, which is understandable, but it is interesting to note just how many transactions are being made for such obscure coins.

💼 Related Article
Interest in Cryptocurrency Leaders Drops: New Players Likely on the Rise
🔥 Hot
1 month 2 weeks
256
Interest in Cryptocurrency Leaders Drops: New Players Likely on the Rise

Tether’s importance

Tether has a long and sordid history with many worrying about its legitimacy as a stablecoin, especially after it lost its pegging earlier this month. Be that as it may, it has long had large transaction volumes, and numbers, and this is echoed on Binance.

The indication is that many may feel that it is worthwhile putting their cryptocurrency into a stable coin to avoid the volatility of the bearish Bitcoin market while still holding onto cryptocurrencies.

In second place is ETH / BTC showing the two top coins by market cap are heavily traded, but there is also evidence further down the list of Ethereum being traded for the more supposedly stable Tether. Ripple (XRP) makes an expected appearance in a pair with Bitcoin at number four, which is not surprising.

Lesser known coins

Where things do get interesting is the number of trades from PHX / BTC, more than BNB (Binance Coin) / BTC, as well as AST / BTC and GVT (Genesis Vision) / BTC. Three of these coins, baring BNB, are out of the top 100 coins; however, they are being traded at a large rate for Bitcoin regardless.

Bitfinex’s version

On another well-known crypto-trading platform, Bitfinex, we see a different situation with many traders opting for crypto to fiat currency exchanges:

Top 10 Bitfinex

The first four leading pairs on the list are all made up of crypto to fiat (US dollar) exchange pairs with Bitcoin, Ethereum, Ripple, and EOS respectively, all of whom are also crypto leaders by market cap, in that order.

Further down the list we see crypto pairs, ETH / BTC and XRP / BTC, followed by the rest, among them trading pairs that include Bitcoin Cash (BCH / USD, BCH / BTC) and Litecoin (LTC / USD). Interestingly, pairing with the US dollar aside, EOS does not comprise a separate pair with another cryptocurrency on Bitfinex; moreover, EOS is left out of Binance’s Top 10 list altogether, which could, in fact, be interpreted as a positive sign of the coin’s relative stability at present.

Here is the situation midweek. Stay tuned for more.

💼 Related Article
Does a Bigger Market Cap Mean a Better Blockchain Company?
🔥 Hot
1 month 2 weeks
256
Does a Bigger Market Cap Mean a Better Blockchain Company?

views
👓 Recommended articles
Darryn Pollock

The Speculative Price of BTC and ETH is Down, But the Fundamentals of the Coins are Just Fine

Just looking at the price of Bitcoin can cause panic, but there are far better metrics for measuring the health of a cryptocurrency
The Speculative Price of BTC and ETH is Down, But the Fundamentals of the Coins are Just Fine

Between the CNBC headlines and the red graphs, as well as the fake picture of BTC miners being dumped, it has been a scary time for cryptocurrency enthusiasts. The fall in the BTC price from the $6,000-ish mark in November to now has caused may to worry about the health and prospects of the bigger cryptocurrencies.

However, the price is just one metric that determines just how well the market and certain coins are doing. Moreso, the price of the cryptocurrency is also the most speculative market metric on which to measure it upon.

There are many different things to consider before basing your sole assumption on the price of a cryptocurrency, and Chris Burniske, a partner at Placeholder and well known cryptocurrency voice, explains that the fundamentals of cryptocurrencies are still showing good signs.

Supply-siders and demand-siders

Burniske, in a post on Medium, explains how he views the health of a cryptocurrency by looking at its fundamentals, and this includes deciphering what is happening with the supply-siders and demand-siders.

“Supply-siders are the folks who provision the network’s service (currently, the most common form of supply-sider is a miner), and demand-siders are the ones who consume the service,” he said.”

“In terms of demand-side and supply-side fundamentals, here are the simple ones I’ll showcase:

Bitcoin Demand-Side: Number of Daily Transactions (#), Estimated Daily Transaction Value (USD), Daily Unique Addresses Used (#). Ethereum Demand-Side: Number of Daily Transactions (#), Total Daily Gas Used. Bitcoin & Ethereum Supply-Side: Hash Rate.’”

He also goes on to determine the network value, rather than using its price per coin, and this is equated thusly: “Network Value” = “Price per Unit” x “Units of the Cryptoasset Outstanding,” according to Burniske.

Supply-siders and demand-siders

Burniske uses the above graphs to show that the while the network value of both ETH and BTC is slowly sliding, the the number of daily transactions is stable to ticking up.

From the peak, Bitcoin and Ethereum’s network values are down 81% and 93%, respectively, whereas daily number of transactions are only down 41% and 52%, respectively.

What he derives from this data is that the drawdown in the network value is actually far less than the drop in the price of both these coins.

On the supply side

Burniske goes on to look at data on the supply side, viewing the hash rates of both blockchains.

On the supply side

“Both Bitcoin and Ethereum’s hash rates are higher now than they were at both of their peaks. Yes, hash rate is (usually) a lagging indicator that follows price, and both Bitcoin’s and Ethereum’s hash rates are on negative slopes which require us to keep a close eye on them. But right now, this fundamental is outperforming price,” he explains

What Burniske is trying to show with this data and its analysis is that, while there is a down turn in the markets, the effects of such are not as strong as the percentage drop in price. The way in which the blockchains are functioning in terms of their supply-siders and demand-siders seems to indicate that the health of the blockchains are still much better than their price.

The speculative nature of cryptocurrencies has always seen it swing wildly, Bit price booms are followed by massive price drops. And although both these assets have lots over 80 percent of their value since their all time highs, that percentage loss is not accurately reflected if you consider their fundamental performance metrics.

views
👓 Recommended articles