November 24th, 2018
This week provides another opportunity for a cryptocurrency HODL vs. FODL analysis. With Black Friday having just passed this is the perfect opportunity to do some shopping.
Cryptocurrency Winter is Here
As the cryptocurrency market progresses through 2018 it is important to distinguish which cryptocurrencies are HODLs (acquisition targets) vs FODLs (possible sells).
The prior months have seen niche market cryptocurrencies trading on major exchanges highlighted. This week 2 HODLS are highlighted: a small cap cryptocurrency and larger cap both in their own respective niche market.
DOCK is one of the smallest market cap cryptocurrencies on Binance providing platform users with ownership of their data. VET is a Top 20 Cryptocurrency by market cap, which specializes in supply chain management.
Both of these coins represent the HODLs of the week. DOCK with a market cap a fraction of VET is likely to post higher returns than VET. VET is the ‘safer’ play while DOCK is more ‘high risk, high reward.’
Bitcoin Gold represents the FODL of the week. BTG is a hardfork of Bitcoin, which allows GPU miners to ‘mine’ the BTG fork instead of the ASICs that are used to mine BTC. GPU mining capability is the predominant benefit of BTG, though that is not enough to keep it relevant in the crypto space.
When analyzing cryptocurrencies, it is important to determine if they are acquisition targets (HODL) or if they are relatively irrelevant in the space (FODL).
DOCK would be the cryptocurrency for those wanting a higher risk, very high reward potential coin. VET is a much lower risk given its substantial list of partnerships but is likely to return a lower percentage based on its market cap. BTG seems to be fading into irrelevancy as their sole purpose is GPU mining of a Bitcoin fork.
With a $5.5 million market cap, DOCK has one of the lowest market caps on Binance. DOCK was added to Binance at the end of July during the height of the bear market. It is almost as if the public did not even notice.
When DOCK was added to Binance the price shot up to over $0.07. With the price currently hovering around $0.01 that is an 86% correction since July 30, 2018. Having corrected such an astronomical amount in just the last two months DOCK seems to be poised for a breakout.
What makes DOCK qualify as a niche coin among many cryptocurrencies is what their platform stands for. DOCK gives individuals ownership of their data, specifically rewarding them in DOCK. This allows the user to connect multiple social media accounts through one portal while securely storing your personal data in the cloud. The information you wish to share from the cloud will be rewarded based on what it is.
Currently, we provide free internet data to many corporations by just browsing. Why not be paid for that same data?
The benefits of the DOCK platform are not just for the user. Yes, it is more simple to have all your social media accounts logged in via one platform. Yes, it saves time to be able to pick and choose which aspect of your data can be seen by the public wishing to pay for it. However, the benefits are far greater than one would imagine.
Advertisers can tailor adverts to their consumers without wasting money on uninterested demographics. Users will not be bombarded with adverts unrelated to their lives. Time and money are saved by all parties with platform users receiving the most benefits.
DOCK is an ERC-20 token that has found a way to pay users for the data they had previously shared anyways. It is essential to be able to protect your private information in the cloud, DOCK not only protects it, but it also allows you to profit from of it. If there was a high risk, high reward cryptocurrency to accumulate prior to the bull run, DOCK is one of the top contenders!
This week’s market correction has forced DOCK down another 30% positioning it perfectly for a rebound and this week’s top cryptocurrency.
VET specializes in supply chain management and for the majority of 2018 had a market cap in excess of a billion. Unfortunately, VET has corrected with the rest of the cryptocurrency space and has fallen to the #20 spot on CMC with an impressive list of partnerships.
Partnerships and platforms result in long-term relevancy. VET has an impressive platform, and a more impressive list of partners: DNV (specializing in audits), PriceWaterhouseCoopers (Big 4 Accounting Firm), National Research Consulting (Fortune 1000 Company), Chinese Government (Gui’an New Economic Area), Republic of Cyprus, and BMW. VET has aligned with the largest manufacturers, governments, and companies to ensure the world can take advantage of blockchain supply management technology.
Even with a list of partners who dominate industry VET has continued to slide down the list of largest market cap cryptocurrencies. VET is #20 while BTG is #19. VET has a bigger community, better partnerships, and more niche platform than the majority of cryptocurrencies, especially in the Top 20. Of the cryptocurrencies that make up the Top 20, VET seems most poised for a break out when BTC price stabilizes.
A niche market, partnerships that would make Fortune 500 companies jealous, being on the cutting edge of technology, and a market that has just fallen 70+% all make VET a highly attractive cryptocurrency. Will the returns be as high as DOCK’s? It is unlikely. VET will likely remain a Top 20 Cryptocurrency for years to come while DOCK could fade into oblivion following a major bull run.
Bitcoin Gold (BTG)
It is never fun to discuss cryptocurrencies that one should FODL, but this week it is Bitcoin Gold (BTG).
BTC went through a hard fork (similar to what they experienced with Bitcoin Cash) resulting in BTG, allowing GPU mining.
However, the cryptocurrency space already has thousands of coins and the ability to mine a BTC knockoff using GPUs is not an important enough reason for BTG to exist.
Any person with GPU miners could mine the highest paying GPU coin, sell the underlying coin for BTC and voila! Problem solved.
The miner is, in essence, mining the real BTC by mining an altcoin and having the user sell it for BTC. There is no need to mine BTG directly instead of a higher paying altcoin and then selling the altcoin for actual BTC.
Recently people have been discussing how Bitcoin has no value because it is infinitely replicable. But this is not true.
Designer purses are also infinitely replicable but each purse that is not ‘genuine’ is fake, a replica, and their value is subsequently impacted. BTG is not BTC regardless of similarities. Mining BTG using GPUs provides the same benefit as mining any other cryptocurrency using GPUs. BTG has no real purpose and is another of BTC’s many unnecessary forks.
With a market cap over $250 million, BTG makes up the #19 spot on CMC. This is surprising as it is one spot ahead of VET. BTG has no long-term viability and minimal partnerships when compared to VET.
Solutions exist to mine using GPUs and earn returns in BTC too. There is no reason BTG needs to be that ‘solution’ leading to a market cap larger than VET’s.
Cryptocurrencies that are focused on niche markets that need a blockchain solution are those that are most likely to survive. Those that have partnerships with thriving Fortune 500 companies are the blockchains of tomorrow. The smaller, lesser-known ones, are the cryptocurrencies that could pull off the next 20-100x.
DOCK is the cryptocurrency on this list that has true ‘moon’ potential. If DOCK’s market cap rivals VET’s that means HODLers of DOCK would enjoy a 50x (comparing market caps). Smaller market cap cryptocurrencies are the ones that have the ability to penetrate the Top 20 while having a huge rise in market cap.
VET is perfect for those that enjoy lower-risk cryptocurrencies but want to remain well diversified in unique blockchain niches. Already having a market cap of over $250 million VET has the potential to provide significant returns. As VET continues to partner with companies many are familiar with expecting the price to begin to appreciate with the turn of the market.
BTG is a cryptocurrency maintaining a Top 20 spot among all cryptocurrencies when it is fairly irrelevant. The benefits BTG provides are minimal and those that wish to mine BTC using GPUs can mine a more profitable alternative, and sell it for BTC.
[Disclaimer: This views expressed in this article do not reflect the views of Bitcoinist and should not be taken as financial advice.]