Hodling crypto will starve the banks

More and more people are investing in Bitcoin and other cryptocurrencies lately. Some are more interested in making money from it, and others are more interested in changing the world. Luckily, investing in Bitcoin and other cryptocurrencies is a great way to accomplish both goals simultaneously. The more cryptocurrency you buy and hold as opposed to saving and investing in traditional financial assets, the more you will starve the banks, and inevitably they will die from this starvation.

AUM: the Bankers’ most important number

Assets under management (AUM) is the single most important number in the banking business. This number represents the total market value of assets managed by banks and financial institutions on behalf of investors. The definitions vary by company but in addition to investment assets such as stocks, bonds, and other financial derivatives, they often include bank deposits and cash.

AUM is so important because the mix of assets determines the overall strengths and weaknesses of financial institutions (i.e. AIG and Lehman brothers were weighted a tad heavy in subprime mortgage derivates). Financial institutions also use AUM as a marketing tool to attract large investors who want to know the relative size of their assets compared to other competitors.

Bitcoin: a huge threat to Bankers’ AUM

Given the importance of the AUM figures, now let’s take a look at how Bitcoin and other cryptocurrencies pose a threat to the assets under management for financial institutions.

  1. For all intents and purposes, Bitcoin and the overall cryptocurrency market has outperformed all asset classes offered by financial institutions. The capital gains clocked by crypto assets are more practically measured in X’s (i.e. 10X gains – or 1,000%) on a yearly basis as opposed to the % increases expected in equities (i.e. 7% for the S&P 500 index).
  2. In addition to acting as a speculative investment asset for many investors, cryptocurrencies has be used effectively as digital cash and are highly liquid. Bitcoin and other cryptocurrencies can indeed be used as a savings account and withdrawn from and deposited to as needed.

There is little point in leaving your money with a bank at this point as interest rates are non-existent. However the banks continue to loan our money out to others for a profit but do not share any of these profits with us.

The need for a global currency

We also need global currencies and don’t trust any centralized body to run this currency, seeing what’s happened and continues to happen across the board with the fractional reserve central banking system.

Censorship resistance

We can spend and transfer bitcoin and other cryptocurrencies without having to give any reason or explanation whatsoever. Once we create a transaction, it is confirmed by a global, decentralized network of computers who all agree on one truth. This is quite a cool thing. In fact, we as cryptocurrencies love it and banks do not offer this.

We actually own our cryptocurrencies

Leaving our wealth in banks in the form of deposits and other investment accounts is quite a risk to take. With crypto, we get to hold and truly own our wealth ourselves without needing to trust any third party.

The banks and proponents of banks will downplay this risk, but it’s quite important to remember what happened to people in Greece and Cyprus in recent years. The banks stole their money to pay for their government’s mismanagement of their economies. People in other countries like Zimbabwe and Venezuela don’t have any protection from this at all, and our friends over there have been quite savvy to join the cryptocurrency movement en masse.

Bitcoin is here to stay. Banks are not.

Bitcoin is not going anywhere. People across the world are all buying more Bitcoin and other cryptocurrencies. Simply put, it’s a better place to keep our money. We get bigger rewards for keeping our money in cryptocurrency, have more freedom to use it, and don’t need to worry about banks lending it out or not allowing us to access it.

The more cryptocurrency we buy in lieu of traditional financial assets and savings/checking accounts, the more banks and other financial institutions will need to borrow from their competitors. If financial institutions don’t adapt to incorporate cryptocurrencies into their services, the banks will surely starve, and eventually die out. Hodl crypto to starve and kill the banks.

Hold On for Dear Life

Jamie Dimon A.K.A. Jamie Demon “The Fraud” vs. Bitcoin

Over the past few years, Jamie Dimon (CEO of JP Morgan Chase) has been the most outspoken critic of Bitcoin. Jamie Dimon, also known as “Jamie Demon”, the fraud himself, has gone on record numerous times over the years expressing his distaste for Bitcoin.

Recap of Jamie Dimon’s most infamous Anti-Bitcoin statements:

  • Jan 2014: “Bitcoin is a terrible store of value”
  • Nov 2015: “Bitcoin will not survive”
  • Jan 2016: “Bitcoin is going nowhere”
  • Sept 2017: “Bitcoin is a fraud”
  • Oct 2017: “Im not going to talk about bitcoin anymore”
    • “If you’re stupid enough to buy it, you’ll pay the price one day”
    • “The only value of a Bitcoin is what they other guy pays for it”
    • “Governments are going to crush it [Bitcoin] one day”

When given a chance to elaborate, Jamie has also stated that he believes that blockchain technology is a very good technology and it will be used for a lot of things. However, he made it very clear that he has an issue with any non-fiat based digital currency.

In this same interview from October 2017 on CNBC, Jamie goes on to discuss how governments like to track how money is being spent and also like to control their own currencies.

A lot of what he says is entirely off base in regards to whether or not Bitcoin is legitimate, however it is interesting how he does recognize that one of the main, legitimate use cases for Bitcoin is in the case of failing central banking systems. For example in Venezuela or North Korea. 

The truth about Jamie Demon and other bank CEO’s

The incumbent banking system, banks that comprise this system, and their corresponding leaders are not prepared for the coming shift in the financial power structure. It’s already changed, and it will continue to change more rapidly in the coming years.

People world-wide now have the ability to be their own banks, and the growth of cryptocurrencies and their corresponding price appreciation is a direct indication of the failure of fiat currency and the monetary policies of central banks, which are all doomed to soon fail.

The 5-year end-game for the banks

Within 5 years, it’s highly likely that there will be no JP Morgan or Chase bank. The blockchain revolution is coming whether the banks like it or not. The bankers can adapt to participate in the crypto movement and benefit immensely financially, but they will no longer have the power to make decisions that affect the world around us.

Banks will no longer crush us under the burden of debt. Wealth will be redistributed to all who participate in the cryptocurrency movement. There will be no more fractional reserve banking system to create wealth for the few at the expense of the many.

The financial “rent-seekers” are nearly out of time as a wide field of financial lending solutions based on cryptocurrency and blockchain technology are hitting the market.

My message to the banks: Adapt or die.

Hold On for Dear Life

 

Take the power back and be your own bank with cryptocurrency

One of the most powerful concepts, which once understood, will help convince people to begin using cryptocurrency is that you can be your own bank.

Using banks: great for them, terrible for us

Take a moment to think about how ridiculous the voluntary arrangement you have with your bank is. You entrust your hard-earned money with your bank by depositing it with them. Thanks to the fractional reserve system (the biggest scam in human history) your bank holds a small fraction of what you deposit and turns around and lends it out to others who need credit for a massive profit in the form of interest, which you get no cut of.

Your bank also imposes limits on what you can deposit and withdraw for your own “safety”, which can be immensely inconvenient depending on your situation. Other negatives include travel limitations for your “safety” and a host of fees including but not limited to monthly maintenance, overdrafts, international payments, ATM, card replacement, early withdrawal, etc.

Bank runs and capital controls

With all these negatives out of the way, I’d like to focus on the biggest risk and most terrifying possibility for any bank account holder – the “bank run”. A lot of the people i’ve personally talked to about the concept of “be your own bank” seem to be under the impression that bank runs are a thing of the past.Bank Run

Well-developed central banking systems and deposit insurance have no protections against a bank run. In fact, if all the deposits in U.S. banks were simultaneously requested to be withdrawn, it would take an estimated 20+ years for the U.S. just to print all this digital money that doesn’t actually exist as paper currency.

And for those who may be under the impression that bank runs and capital controls are a thing of the past, you need to think no further back than to the latest 3 examples, all within the past 5 years.

  1. Cyprus in 2013
  2. Greece in 2015
  3. India in 2016

US and other economic superpowers not immune

It’s important to note that more developed countries like the U.S. are in no way immune to this. The fact of the matter stands that when people want physical cash, banks will have a huge problem and they will be absolutely unable to facilitate even a small portion of these withdrawals.

Why is Bitcoin better?

Reviewing all the negatives about using banks sheds a bright light on the stark contrast between using banks and using bitcoin.

Bitcoin shares none of the negatives of bank accounts and at the same time incentivizes users much better to “deposit” (or hold) bitcoin. Bitcoin provides users with security. Sending and receiving bitcoin is easy and has no limits or extra fees aside from the transaction fees used to compensate miners for securing the network.

Bitcoin’s value is also very attractive in the middle of this low to negative interest rate environment. While interest rates are at historic lows, Bitcoin’s likelihood to continue growing increasing in price over time is much more attractive than interest payments that don’t even match the inflation rate. 

Bitcoin is also extremely portable. It’s easy to store on anything from hardware wallets to paper wallets, and even brain wallets. Yes, with the advent of bitcoin we have for the first time in human history the ability to store our wealth in our brains. Simply memorize your private key and hope that you don’t suffer from amnesia down the line (pro-tip: always back up your private key somewhere!).

Power to the people: BYOB (Be Your Own Bank)

Banks are worried about Bitcoin because it’s a serious threat to their current power structure. For a number of reasons, Bitcoin and other cryptocurrencies could make them entirely obsolete. Since Bitcoin has no liabilities or debts associated with it, it’s truly yours when you hold it. This type of asset is known as a “bearer instrument”.

There can never be a run on the “bitcoin bank”. Therefore, the biggest risk (a bank run – which is highly likely to happen again) is entirely absent from bitcoin. This is a huge reason that Bitcoin is superior. This is also why you should seriously consider BYOB’ing with Bitcoin and cryptocurrency. Be Your Own Bank!

Printing your own money is optional

Another major factor in favor of being your own bank with crypto is the ability to “print” (otherwise known as “mine”) your own coins.

Bitcoin and other major cryptocurrencies have a limited supply and pre-defined parameters for issuing the bitcoin currency which is created through mining. Unlike central banks, where a small centralized group of bankers entirely controls the issuance of the currency, the bitcoin code was written to continue issuing the precious cryptocurrency to miners until 2140.

Although Bitcoin mining is very competitive at this point and requires serious start-up costs, expensive mining equipment, and high energy expenditures, there are many other options for “money printing” in the cryptocurrency world. A couple of these options include GPU mining and holding PoS coins in wallets.

Summing up the benefits of Bitcoin over banks

Bitcoin has all the benefits of banking and more without the risk of capital controls. This is the main reason Bitcoin has grown so much in recent years, and continues siphoning value out of national currencies. All this is being done with Bitcoin’s main use case as a store of value and speculative investment vehicle. It has yet to reach any level of mass adoption to be excited about.

If you ask me, it’s a no-brainer to use Bitcoin and other cryptocurrencies over traditional banks. Either A) you hold your wealth in an institution that might never allow you to withdraw it when you need it the most and lose value in the form of inflation, or B) you hold your wealth in cryptocurrencies and benefit from better incentives and almost certainly increase the value of your holdings in comparison with fiat currency.

The choice is yours. Hold On for Dear Life.

Bitcoin Cash is the “Real Bitcoin” according to Bitcoin Judas

The Bitcoin vs. Bitcoin Cash “War”

There is a wide spectrum of opinions about the on-going Bitcoin (BTC) vs. Bitcoin Cash (BCH) war. Some experts argue over which coin has the better long-term solution for scaling. Some also argue over which coin has become more centralized by the powerful mining companies who control large portions of the hash power. Yet, others find less technical issues to be more concerning, such as whether or not Bitcoin Cash is hijacking Bitcoin’s brand name or which coin Satoshi Nakamoto, the anonymous creator of Bitcoin would approve most of.

The Polarization of the Two Bitcoin Camps

Both camps have had their fair share of attacks since the Bitcoin hard fork this past August. Since then, this on-going and highly controversial battle has involving some of the top thought-leaders in the space chiming in with their opinions, and overall it’s caused a great deal of confusion for the cryptocurrency community.

The extent to which the debate has been polarized can be seen in sensational statements on the far ends of both sides of the Bitcoin/Bitcoin Cash spectrum, ranging from “Bcash is a scam” to “Bitcoin Cash is the Real Bitcoin”.

Disclaimer: Satirical Artwork

Before diving deeper into concept behind this design, I’d like to state that I am a neutral party in this “war”, and in fact do not have a problem with Bitcoin Cash. I personally would like to see both projects succeed and use both coins.

The featured artwork is purely satirical and done mostly to poke fun at Roger Ver and to reflect what I perceive to be the community’s reaction to his incessant shilling of Bitcoin Cash.

Prints, Canvases, Accessories, and Apparel available at the hodl art shop.

Roger Ver: from Bitcoin Jesus to Bitcoin Judas

Roger Ver has been a top advocate of Bitcoin for many years. This is why he was kknown as “Bitcoin Jesus”. He is a very vocal anarcho-capitalist and his both his early involvement investing in Bitcoin and renouncement of his US citizenship are demonstrative of his political idealogies, which are very in-line with those of the cryptocurrency movement.

However, Roger’s story has changed over the past couple years from evangelizing Bitcoin’s benefits and promoting adoption to being more of a detractor from Bitcoin with his constant involvement in project designed to displace Bitcoin.

Roger has said on record countless times that people have stopped using or investing in Bitcoin and switched to altcoins because of Bitcoin’s scaling issues and corresponding high transaction fees. The truth is that if people stopped using Bitcoin, there would be no scaling issue.

In Satoshi Nakamoto’s whitepaper, he said that Bitcoin is a peer-to-peer cash system. The truth is that, although Satoshi demonstrated genius foresight in the Bitcoin design and code, he wrote it before the current Bitcoin ecosystem was built.

One of Roger’s fundamental arguments detracting from Bitcoin Core is that Satoshi hinted at a blocksize increase in one of his last posts before disappearing. Satoshi hinted that larger blocks could be a good idea, after some optimization.

Bitcoin XT, Bitcoin Classic, Bitcoin Unlimited

Bitcoin XT was created by Mike Hearn and Gavin Andresen to aggressively increase the blocksize to 8MB. Roger Ver supported it but it never caught on. This is where he began complaining about the censorship on Reddit /r/bitcoin.

Bitcoin Classic was Roger’s second attempt. Instead of increasing the block size to 8MB they tried 2MB. In March 2016 they managed to get 7% of the Bitcoin network hashing power to support Bitcoin Classic. In a desperate attempt they tried to set up as many fake nodes on AWS as they could to try to look more popular.

Bitcoin Unlimited was the third attempt, this time they tried bribing. Bitcoin Unlimited received a “500,000 usd donation” and now additionally there is a 1 million dollar grant for alternative implementations. I think this kind of falls under the “bribing” part that I will discuss later.

Bitcoin Cash

The Final, and by far most successful project detracting from Bitcoin is Bitcoin Cash. Roger says that Bitcoin Cash isn’t exactly a ‘better Bitcoin’, but a return to the original functionality that Bitcoin intended. In an interview, Roger Ver said:

Bitcoin Cash is the real Bitcoin and will have the bigger market cap, trade volume and user base in the future.

Roger’s main argument is that the Bitcoin Core team intentionally increased transaction and confirmation costs, and lowered transaction rates. He believes that Bitcoin Cash is a better solution, and will become bigger than BTC in the future.

Bcash pump and dump scam or Legit?

Some members of the crypto community speculate that Bitcoin Cash’s price rise was a pump and dump scheme to trick traders. If you’ve been paying attention to the prices since the fork in August, it may very well seem as such.

Due to Bitcoin Cash’s shady price movements and mining centralization, many have chalked Bcash up to be just another anti-bitcoin scheme driven by Roger.

Bitcoin supporters changed Roger Ver’s nickname from ‘Bitcoin Jesus’ to Judas as a result, symbolizing his switch from supporting BTC to BCH. Some believe that Roger Ver is shilling for major BCH stakeholders. He does so every chance he gets.

 

So, What’s your take?

Do you favor BTC or BCH or a different crypto altogether? Drop a comment below.

Hold On for Dear Life

R.I.P. Banking System: Bitcoin Art on the streets of Paris

French artist Ludo hit the streets of Paris, France with a thought-provoking new piece of Bitcoin Art. It features a blooming Bitcoin flower rising above the tombstones of four major fiat currencies: US dollar, British pound, Japanese yen, and the Euro.

RIP Banking System - Ludo Paris

The mural is titled “R.I.P. Banking System” and is surely one of the most impactful pieces of bitcoin art to date.

A Thought-Provoking Image

For the vast majority of the global population, it’s difficult (some may say “crazy”) to imagine a world where government regulated fiat currencies are overturned for a decentralized and unregulated cryptocurrency.

The truth is, this is VERY possible.

Many of us crypto HODLers understand the long-term implications of blockchain technology and can see the “writing on the wall” so to speak for the fiat-based banking system.

Bitcoin and other cryptocurrencies have the potential to absorb the capital from all fiat currencies, financial securities, hard assets, and any form of value, really. I am not stating this WILL happen, but it definitely CAN happen, and to some extent, it will.

RIP Banking System - Ludo Paris

USD, the Fiat Martyr?

A closer look at this bitcoin art piece shows a crucifix for the US dollar, while showing R.I.P. for the other 3 currencies. What can this possibly mean? I have a couple theories:

  1. USD, the top fiat reserve currency is symbolized as a crucified martyr. As evil as the US Dollar and private bankers behind it are, it has paved the way for the rise of crypto through the cypher punk movement.
  2. Since USD used to be a legitimate currency backed by gold, the idea of a legitimate USD has already been crucified, and as the debt-based version died, it will always be held in higher esteem for what it once was.

The idea of a global currency has been around for 30+ years. In 1988, the Economist magazine cover (owned by the same Rothschilds who own much of the banking system) shows an interesting, and timely prediction for exisiting fiat currencies:

Economist 1988 Cover
Economist 1988 Cover

Rise of the Phoenix – The Cryptonati?

The Economist cover, along with other signals in the mainstream media are enough to get the conspiracy theorists in a frenzy over what’s to come.

Rise of the PHOENIX - NWO
Rise of the Phoenix

The cause for concern is valid. If this was planned by the same global elite controlling current financial systems, what’s really going to change?

Power to the People

The decentralized nature of cryptocurrencies and blockchain technology will make it harder for  small group to control global finance and economic policies. Without the debt-based, fractional (fictional) reserve monetary system, our wealth is more easily preserved, protected from inflation and money printing schemes, and resistant to censorship.

Long live Bitcoin and the cryptocurrency markets. Our day in the sun is yet to some. We have a bright future ahead, and we hope to see more of these thought-provoking bitcoin art pieces in the near future. Buy yourself some bitcoin and Hold on for dear life.

Links to support this blog
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Litecoin is pumping just in time for Valentine’s Day. Is it time to sell $LTC and take profits?

Charlie Lee sold his Litecoin for profit at it’s all time high in December. Now might be a good time for you to take some profits too.

Some of you out there reading this might be thinking, “WHAT? It’s only half of it’s all time high price!” But the truth is.. we are at the All-Time-High again right now.. in Bitcoin value.

As you can see in the 1st chart below in the LTC/USD pair, we hit an All-Time-High over $360 in Mid-December, selling off down lower than the $180 we are at today.

However, when you look at the 2nd chart in the LTC/BTC pair, we can see that we hit a new all-time high today in the Bitcoin value of Litecoin, over 0.02 BTC.

Perhaps some people are FOMOing into Litecoin because of the upcoming Litecoin Cash hard fork. Maybe some people of the weak hands are buying back in on coinbase and want more Litecoin while it’s cheap.

Maybe Facebook and other rumored partnerships will come to fruition one day, along with the lightning network, atomic swaps, partnerships with Monero, and much more. Only time will tell.

Until then, we still need to call profit taking opportunities when we see them. The historical price of LTC in BTC has ranged between 0.008 and 0.02 BTC for the past 10 months indicated by the yellow lines in the chart below.

ltcbtc

Using this medium-term analysis on LTC, it’s definitely a good time today to take some profits into Bitcoin; or just HODL. This is not financial advice.

 

The first Litecoin hard fork “Litecoin Cash” (LCC) – Is it worth FOMOing over?

Litecoin Cash: What is it?Image result for litecoin cash fork

An unofficial hard fork of Litecoin, which is basically a clone cryptocurrency which forks off the Litecoin blockchain.

Why “unofficial”? Well.. because Litecoin’s founder, Charlie Lee says so:

charlieleelitecoincash.PNG

A new cryptocurrency named “Litecoin Cash” (LCC) will fork from the Litecoin blockchain at block 1371111
https://live.blockcypher.com/ltc/

Everyone holding Litecoin will get 10 Litecoin Cash (LCC) for every Litecoin they own.
The Max Supply for Litecoin Cash will be 840 Million compared to Litecoin’s 84 Million, which is why the claim ratio is 10:1
Although Litecoin is mined with Scrpt, Litecoin Cash witll use the SHA256 hashing algorithm.
This is being promoted by Litecoin Cash as a way to extend the life of older Bitcoin mining hardware which is no longer powerful enough to mine Bitcoin.
Since the difficulty of Litecoin Cash will be much lower, it will put less effective SHA256 mining hardware to better use.

Compared to Litecoin, Litcoin Cash also features superior mining difficulty adjustment using the DarkGravity algorithm which is also used by Dash.
This should be considered a “Friendly Fork” because the network will use a new address prefix, unlike Bitcoin Cash did with Bitcoin, which caused much confusion.

How do you get it?
The block of the fork, 1371111, is expected occur sometime between February 18th and 19th so you must be holding Litecoin when this block is confirmed.

Firstly, before getting deeper into how to get the fork, here are some IMPORTANT DISCAIMERS to keep your Litecoin safe.
1) Wait for the fork before doing anything
2) Move your Litecoin to a new address after the fork
3) Use the private key for your old Litecoin address to claim your Litecoin Cash

How to get Litecoin Cash:
1) Download a wallet for your device directly from the official Litecoin Cash website: https://litecoinca.sh/
2) Import your Litecoin private key
3) Claim your Litecoin Cash

Is it legit or a scam?
Although they promote safety measures in order to claim it such as moving your Litecoin before pasting old private keys on the internet, it seems a bit on the scammy side. Charlie Lee’s tweet does explicitly state that anything claiming to be a Litecoin hard fork is a scam.

However, whether Litecoin Cash proves to be a scam or worthless for that matter, if you follow the “Safety Rules” as you claim the fork, there is no risk of losing your coins or being scammed as long as you make sure to never again use the Litecoin address you input to claim the Litecoin Cash fork.

What does it mean for the future of Litecoin?

Image result for litecoin future

This Litecoin Cash hard fork and any other similar hard forks which are developed by members outside of the Litecoin core developer group will have a very minimal impact on the future outlook of Litecoin, if at all.
The most likely outcome for this fork should be very similar to Bitcoing Gold, otherwise known as Bgold.

Image result for bitcoin gold make bitcoin
There are a couple reasons why Bitcoin Gold is our best proxy to benchmark our expectations for Bitcoin Cash.
1) Bitcoin Gold’s main points of differentiation vs. Bitcoin are also the mining algorithm and faster difficulty adjustments
2) Bitcoin Gold’s development team is also a small group in China presenting a friendly fork in order to make better use of certain mining equipment
3) They both have bad English, bad Marketing, and made forking announcements on short timelines to push hype and a sense of urgency to receive the fork.

Currently, Bitcoin Gold is trading around 1.5% the price of Bitcoin. I would expect a similar outcome for Litecoin Cash, although in Litecoin Cash’s case, it may be more like 0.15%, due to the 10-1 claim ratio of the fork and higher Max Supply

With all this said.. let’s get back to the point. Is Litecoin Cash worth FOMOing over?
The answer to that question depends how much skin you have in the game, whether this is something to FOMO over, or even to bother with claiming.
For example, If you are the owner of 100 LTC, currently valued around $15K USD, the Litecoin Cash fork could possibly reward you with a couple hundred dollars worth of coin. You could hold them and see what happens, or even sell them and use them to increase your Litecoin holdings.

However, if you’re only holding a small number of LTC, for example 5, this fork may very well not produce enough value to cash out for a happy meal.

So will you FOMO or not? The coice is up to you…

Proof of stake (POS) cryptocurrencies

HODL your Proof-of-Stake (PoS) coins to validate, and earn crypto by PoS coins.The PoS concept is straightforward and easy for anyone with a laptop to do as opposed to buying the mining hardware you can find in your typical bitcoin mining farm.

PoS coins are also interesting because there is a growing trend in cryptocurrency market towards PoS coins. Even Bitcoin’s impending Lightning Network upgrade seems to forebode a PoS-like system, even though the main Bitcoin chain will continue to rely on PoW.

Proof-of-Stake is a much newer proposed methodology for achieving distributed consensus. The viability of network’s relying on PoS are not achieved by mining but rather by staking. Staking, simply put, is just when users hold their PoS-compatibile cryptocurrencies in a specialized staking wallet.

Staking achieves the same effect of mining (distributed consensus) without the need for expending exorbitant amounts of computing power and energy.

And if you “stake” your coins, you’ll be rewarded with crypto payouts on a rolling basis just as if you were a mining “winning” a block.

 

I was introduced to this concept by staking NEO (The Chosen One).

NEO

NEO is interersting because it uses something called a delegated Byzantine Fault Tolerance (dBFT). Disregard how confusing that might sound at first glance, and just think of dBFT as kind of like an optimized Proof-of-Stake system.

 

Lisk

Like NEO, Lisk uses a different kind of PoS. Lisk’s distributed consensus methodology is called delegated Proof-of-Stake, or DPoS for short.

This means that while staking is possible with Lisk, it’s only possible for the top 101 “delegates,” with these delegates being voted on and agreed to on a rolling basis by the community.

So, not everyone can stake with Lisk. You’ll need to crack the top 101 delegates for that. But the project still uses an incredibly interesting PoS model.

And with Lisk being akin to Ethereum but built atop the programming language JavaScript instead of Solidity, its potential impending mainstream use could have its dPoS system getting increasingly popular in the years ahead.

Stratis

Stratis is a C#-based crypto project that mined its first PoS block earlier this year in May.

As the Stratis team declared triumphantly at the time:

“This is the first documented and tested instance of a Proof-of-Stake blockchain block mined in C#. Now the developers will combine the full node with the wallet layer developed for Breeze, our full node with PoS will then be ready for a test release in approximately a week from now.”

PIVX

PIVX is a project that forked off of the DASH blockchain last year and has, unlike DASH, fully transition to the PoS distributed consensus system.

PIVX holders have the perk of not having any minimum or maximum cap for staking, too, so you can stake any amount of coins you would like to. To this end, they take the opposite approach to Lisk: anyone and everyone can stake.

Stakers get an annual return of around ~4.8 percent with PIVX.

OKCash

OKCash is an older cryptocurrency project, having been started back in 2014. They’re one of the “OGs” of PoS, as it were, and the project is orientated toward being a micro-transactions throughway.

They’ve got a pretty impressive annual staking return of around ~10 percent. That’s among the best annual returns you’ll find among any PoS coin right now.

All you’d need to do is move your requisite OKCash into a specialized staking wallet.

Many projects are already moving toward PoS, even though it’s a distributed consensus methodology that still hasn’t been widely tested at present.

ETHEREUM

If Ethereum’s shift to Proof-of-Stake goes off without a hitch and proves successful, the dynamic of PoS coins having a small overall sliver of the top 100 cryptocurrencies by market cap in contrast to PoW coins should forever change, to the extent that that “sliver” should become something larger.

ETH’s so-called “Casper” update is what will initiate the crypto’s evolution to PoS. Once this is completed, ETH holders will be able to stake their funds for recurring “dividends” of ether.

Right now, it’s definitely not set in stone how many ether will be required to stake. Indeed, there has been several numbers casually thrown around the community in recent weeks, but to be clear: nothing’s official yet.

Some of these numbers have been as high as needing 1,000 ETH to stake. Some projections are as low as 10 ETH. Another number you hear a lot is 32.

But don’t worry if you’re not an ether whale. Eventually you should be able to pitch in even small amounts of ether into staking pools to partake in the new model.

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