ICO fever is in full swing! Basic Attention Token (BAT) initial coin offering generated 35 Million USD in under 24 sec. That’s more than 1 Million USD per minute – a feat that would make any startup in Silicon Vally Jealous. It took less than 3 blocks to complete the sale, with many senders adding a heavy premium in terms of gas to participate in the sale. The crowds were so excited that the amount of traffic to etherscan caused DDoS lag times site response.
This is the current status of the market – there are a lot of investors looking for the next best coin. This year there are less and less pre-mined coins and ICOs are the new rage. Gnosis ICO sent the company skyrocketing with a valuation more than 300M.
Sold out in 24 Seconds
Large Buyers – Single transactions of over 10,000 ETH played a large role in the sell off.
Large Transfer fees – Largest gas spent was over 20 ETH
Decred (Decentralized Credit) is a crypto-currency that is focused on superior governance through decentralization. Decred can be transferred as a digital currency (like bitcoin). It has one key advantage, which is Decred can be used to create additional Decred over time, like interesting in a bank account. This is possible by a system called Proof of Stake, where people who hold Decred can help the system process transactions (and get paid for it).
Over the past 3 months, Decred has exploded in value, rising 1000% in value in a short period of time. Some believe that Decred is a sleeping giant that has awoken, whilst others accuse it of being a pyramid scheme.
Decred vs DASH:
Reward Distribution: Decred uses a highly advanced reward distribution system – rewards are split between miners, Decred holders, developers. DASH uses a similar system with a slightly different distribution ratio.
Proof of Stake system – Decred or Dash holders get “interest” by holding on to the currency. More specifically, holders vote on issues and get rewarded for it. DASH uses a masternode system which requires 1000 DASH before they can start voting (this cannot be transferred out unless the masternode is shut down). Due to the high buy-in price, DASH master nodes are extremely valuable. Decred uses a ticket based system, and tickets holders are chosen randomly to vote. This allows for a much smaller buy-in and greater participation.
Improved Voting system: The biggest objection with Bitcoin is that the community cannot easily vote on issues regarding updates to the protocol. With both DASH and DECRED, community voting is done by stakeholders (masternodes (DASH) or voting tickets (Decred).
InstantSend and Private Send – DASH has additional features to instantly process transactions (Instant Send) and anonymous transactions (Private Send). These features are unique to DASH
Where to Buy Decred
Decred is traded on the exchanges Poloniex, Bittrex, and Bleutrade. Decred is abbreviated as DCR.
Can you Mine Decred
Decred can be mined using the Blake256 algorithm (Minable with AMD / Nvidia GPUs). DASH can be mined using the X11 algorithm on special machines called ASICs (no longer profitable to use GPU to mine)
DASH Cloud Mining.
DASH cloud mining is possible (a process where you pay for a professionally managed machine that mines DASH). Check out our guide here: Genesis Mining DASH.
Altcoiner (https://altcoiner.net) is a business that offers users the ability to “easily invest” in alt currencies. Investments take the form of bitcoins and altcoiner provides up to 5% return on investment per DAY. If this sounds ridiculous.. it probably is. There is no such thing as a free lunch. Here are some simple facts:
Bitcoins cannot be returned by legal means – If the company decides to run away with your investment. There is no legal means to return you funds
Alt currencies do not consistently grow by 5% a day – in fact sometimes they fall. There is no way to use Alt currencies to guarantee a daily return.
Alternative Limited hasn’t been filing the annual returns since 2014 – Company search revealed that Alternative Limited hasn’t been filing mandatory annual returns since 2014
Alternative Limited is owned by a single director who lives in Nepal – Hisi Bajracharya (real name) has been identified as the sole director of the company.
For those interested, the Hong Kong goverment keeps records of the details of directors of companies. Here is the information for Altcoiner (Alternative Limited):
There are some forum posts stating that Genesis mining is a scam. They accuse that Genesis is not a real company and that they knowingly sell contracts which won’t make a return on investment. This post will examine each accusation in detail.
Is Genesis Mining a Real Company?
This is one of the most important questions to answer – Is Genesis Mining a real company that is mining actually being done. The biggest fear of investing in cloud mining is falling victim to a pyramid scheme.
The best way to answer this question is to look at picture or video Proof. Genesis Mining has provided a series of videos of them building and maintaining their mining rigs (eg the ethereum datacenter “enimga“. In fact they also provide a live feed of their datacenters. It is safe to say of all the Cloud mining services, Genesis has provide the most evidence to support their setup.
Return on Investment
The other accusation is that Genesis mining sells contracts that are NOT profitable. And this is something they are definitely guilty of. I made a table of all their contracts and calculated the return on investment (ROI):
The “Yield” is the return on investment after the contract period is over. A yield of 100% would mean that you get 100% of your money back, so you don’t make a profit and don’t lose any money. It is clear that Zcash contracts are extremely poor for value, with a yield of 66%. This means you will lose money. That said, other contracts are extremely profitable, with DASH being the best return at the moment with 349% return on investment. Changes in the value of the currency and network difficulty will affect the yield.