Transcript:
Steve McDonald: Our guest this week is the cryptocurrency king himself, Adam Sharp – the guy who’s been telling you forever to buy these things, and he’s still telling us that.
Welcome, Adam.
Adam Sharp: Thanks a lot, Steve.
SM: In this segment, we’d like to talk about the most important things you look at before recommending a cryptocurrency.
AS: It’s harder than it used to be to look at these cryptocurrencies because we used to have a very small handful of reputable cryptocurrencies – less than a dozen just a couple of years ago. And today, there are hundreds of really interesting projects out there that are worthy of attention.
So yeah, it’s more complicated to evaluate these things, but it’s also more fun. In general, I would say the most important thing is the technology underlying the coin or token.
And that sounds kind of broad and general, but to stand out in today’s cryptocurrency market, you really need something spectacular about your technology. You need more transactions per second. You need cheaper transactions.
So it ultimately comes down to the technology. And the coins with the most interesting and most innovative technology will attract the best developers.
Most of these coins have a community of developers that contribute. It’s a lot of different people from different backgrounds all over the world who believe in a coin, so they’re willing to dedicate some of their time to it. Also, they probably own some of the coin.
It’s really important to start off with a good technological foundation – and a unique one as well. Because most of these coins are what’s called “open source,” anybody can take the code, copy it and create their own cryptocurrency.
So you need something that’s both unique and attractive to a community. You need to attract developers like a magnet. You need to bring in talented programmers who can come in, improve your coin and continue to safeguard it. Security is another big thing.
Unless you have really talented developers who are reviewing the code and testing any changes, you’re going to run into security problems eventually. People are going to be able to attack the coin network itself.
This is one of the reasons why bitcoin has been around for so long – it’s very, very hard to attack. It has a large community of developers who are constantly working on improving it – improving the performance.
And the most important aspect of bitcoin is its security. Because it has the longest track record in crypto, it’s very important to developers that it’s not tarnished. If someone attacked the bitcoin network successfully and stole some coins or disrupted the network itself, it would blemish that track record.
So really, it’s all about the underlying technology. After that, there are other important factors, including marketing, know-how and community outreach.
The developers need to be aware enough and confident enough in their product to communicate updates effectively. They need to be able to reach out to the community.
SM: Okay, let me interrupt you for a second.
AS: Sure.
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SM: …read more
Source:: Investment You
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