Welcome back everyone to my continuing analysis on some of the top cryptocurrencies that you should be investing in. If you haven’t read part one, you can find it here. Today I’m going to go over 5 Mid Cap picks – cryptocurrencies and assets that as of yet have not hit it big time and are under a 100 million dollar market cap. These are riskier picks than big caps simply due to less stability, however the ideas are solid and the gains will be much more explosive in this tier.
Edgeless – EDG
In a world where it can be difficult to find actual use cases for blockchain and its technology (mainly due to how new it is), Edgeless gives us one of the most obvious answers to the usecase problem: provably fair gambling.
Currently, online gambling is a 50 billion dollar industry, and despite this, gamblers and users of online gambling software have many complaints such as the house advantage, rake, and even scandals. Edgeless promises to get rid of all of these entirely, and provides a service with a 0% house edge – it is a completely fair game, and Edgeless bets that they will make money simply due to players themselves not playing perfectly (if every player played perfectly, they would come out 50/50)
Edgeless is currently sitting at at 38 million dollar market cap. Quite a ways to go to reach that 60 billion.
For such an auspicious project, it’s hard to find any real drawbacks to it. One possible problem is that players will simply play to the best of their ability in order to gain an edge against the system in games such as Poker, where you can make positive Expected Value (EV) maneuvers against the house. However, there are far more unskilled players that will use the platform compared to skilled ones, and this is only one game where +EV is possible. Thus, downside risk is quite minimal.
Etheroll is a competing service that offers provably fair dice rolling and gambling. The advantage that Edgeless has over DICE however, is that Etheroll is only a dice game while Edgeless plans to include games such as Poker, Blackjack, and more. In addition, Edgeless has a 0% house edge compared to Etheroll’s 1% house edge, thus making it the clear winner if you’re a gambler looking for a platform.
With such clear advantages, low current market cap, and large potential for future adoption and gains, Edgeless is my top pick out of all the mid-cap coins for crypto investment opportunities.
BlockNet – BLOCK
Blocknet is a project aiming to provide inter-connectivity between blockchains and provide the advantages of all of them to the user without ever having to worry about which blockchain to use. As an example, you might want to pay someone privately, but instead of converting your funds from Bitcoin to Monero and back to Bitcoin again, you could simply use Blocknet to carry out this service for you:
No single blockchain could carry the load of storing and serving humanity’s data. There is already a vast array of technologies upon discrete, isolated blockchains. Together they are capable of realising the vastly disruptive power of a decentralised internet – if they could be made to work together.
The Blocknet is designed as infrastructure for the emerging token ecosystem. Any service or orchestrated sequence of microservices provided by dapps may be delivered over the Blocknet’s infrastructure.
Using decentralized exchange, these services are intrinsically monetizable, removing the friction and high costs of traditional payment networks – friction which has prevented the monetisation of the bulk of the API ecosystem.
Due to the decentralized exchange, consumers of a service may pay in their native token even if the service consumes a different token.
Blocknet is an extremely complex project – bridging together blockchains is no easy task, and their success as a platform will depend entirely on the scalability and strength of their XBridge protocol. It’s possible to have bugs and errors which would reduce the credibility of this already hard-to-understand product and people may decide to simply do these operations themselves. If Blocknet can make the process as simple as clicking a button, it will be a great boon to their future growth potential.
Blocknet has several competitors that have risen up including Polkadot, Cosmos, Internet of Coins, Supernet and others. The advantage that Blocknet will have over all of these however, is its technology – I’ve compared the tech advantages of each of these infrastructures and Blocknet has the best features of all. Other attempts at unifying the blockchain come close, but there is usually a feature or two that are missing (that Blocknet provides) which make it the clear winner. There will likely be some more comparisons made between Blocknet and Polkadot in the future, but that project is still too new to make comparisons.
Blocknet takes the best features of each blockchain and combines them in such a way as to make transactions instant (only limited by the confirmation times of the used chains), fully decentralized (compared to other blockchain networks) and lightweight, offering the chance to use the powerful advantages of blockchain even on weaker devices such as mobile phones.
Their decentralized exchange promises an even faster experience for trader/investors as well as the capability of keeping your own private keys when doing any kind of trading – while it’s not necessarily the main focus of the Blocknet project, this should not be left as an afterthought, as a fully functioning decentralized exchange (similar to the Counterparty DEX) with enough mainstream appeal can move mountains.
Ubiq – UBQ
Whereas Ethereum and other Smart Contract platforms attempt to mass market their product and software, the team at Ubiq chose to move the other way and narrow their focuses. Ubiq is focusing primarly on the FinTech (financial technology) industry and aims to be the premiere enterprise solution for professional companies looking for reliable, affordable solutions.
I don’t often mention developer team as they are a small part of my overall analysis, but Ubiq is backed by Julian Yap, who himself has gone through almost all of the codebases of every cryptocurrency and asset that has been added to the popular Bittrex exchange, giving him professional status in this burgeoning space as well as the experience and knowledge that he and his team will be able to leverage to improve the Ubiq system.
Ubiq’s strength in being a niche platform could prove to be a downside in the future – while it is simple for Ubiq to implement code that is created on the Ethereum chain (as it is a fork of Ethereum), this will have to be done sparingly and reliably. No company is going to trust Ubiq in the future with highly sensitive operations if their code is not absolutely up to par and at a greater standard than more generalized platforms like Ethereum.
Syscoin is another great blockchain based project that is attempting to bridge the gap between distributed ledgers and business application, and while it may initially seem like these two are direct competitors, Syscoin and Ubiq are not intensely battling for the same market share. Whereas Syscoin is more interested in delivering business solutions to individuals, storefronts, and online marketplaces, Ubiq is focused on providing services to more corporate companies and backend systems.
Ubiq has great developers, a solid concept without going too far into territory where they can bite off more than they can chew (unlike Ethereum, Ubiq is a much more secure chain). This is one solid project that has an immense room for growth and one of my top picks for 2018 and beyond.
TenX – PAY
TenX is blockchains killer app – applying cryptocurrency to the real world and enabling users and holders of cryptocurrency to spend them as they wish, at any store in the world using their TenX VISA debit card. Users no longer need to liquidate their positions in, say Digibyte, to Bitcoin in order to spend it using more traditional Bitcoin debit card services. With TenX you have the capability to spend your blockchain assets and cryptocurrencies at any time, instantly, and with no fees.
TenX largely depends on the functionality of the COMIT Network – a brand new infrastructure created to allow for swapping of crypto tokens through blockchains, similar to Blocknet. However, COMIT will require a large amount of users to be using the network in order to find the liquidity to be able to convert a lot of these coins. For example, if you’re looking to spend some Digibyte and few people on the network wants Digibyte then you’ll likely pay a large spread fee to Liquidity Providers – this fee will still likely be magnitudes lower than current payment systems but people largely prefer static fees as opposed to dynamic ones.
Monaco and Tokencard, in my opinion, are both weaker products overall. In the case of Monaco, they only provide Bitcoin and Ethereum assets, while TenX will eventually add any cryptocurrencies that fit their minimum requirements as specified in the COMIT whitepaper. On the other hand, Token is strictly Ethereum-based, which removes yet another viable asset for spending in the real world (Bitcoin).
The TenX team has created a wonderful product here, and should the COMIT network and Liquidity Providers function to a high level, mainstream adoption will take a huge leap forward. Taking an esoteric concept like cryptocurrency and applying it to well known concepts such as debit cards is a master stroke and an investor would be remiss not to have some PAY tokens as part of their digital assets portfolio.
BitBay – BAY
BitBay, in plain terms, is a decentralized eBay. Not only are eBay and Amazon the only relevant services people can use in the current day if they’re looking to sell their products, they are also highly centralized, tyrannical companies that leave the seller at the mercy of the buyer. For anyone who has ever used eBay/Amazon, they can attest to the high fees and bias towards buyers.
BitBay attempts to change all that, making e-commerce operate entirely off of Smart Contract. The system works in such a way that the buyer and seller are put on equal ground – they must both deposit money into the Smart Contract – this way both parties are incentivized (by the escrowed money) to work together and resolve the Contract. BitBay is also Peer to Peer as opposed to blockchain – it’s an interesting move, especially in crypto. To someone with the hammer of blockchain, every problem can look like a nail – BitBay is a more refined solution to the problem of centralized marketplaces.
BitBay is currently selling for 2 cents per token, with plans to peg the currency to 1 dollar.
One of the downsides of decentralizing a marketplace like eBay is exactly that – for most novice buyers and sellers, they are likely much better off trusting and paying a third party (such as eBay) to take care of all of the disputes and make sure things get sent on time, etc. For more professional sellers, however, using BitBay becomes the clear choice once the market moves in that direction as they will save up to 10% or more on fees by using the BitBay platform over eBay/Amazon.
That’s also a second possible downside however – BitBay will require mass user adoption, which as of yet remains to be seen if it can be done. BitBay will likely need a large marketing team and strategy in order to secure a large initial following of members with which to springboard the platform and attain more market share.
Syscoin is yet again a competitor in this space, as BitBay and Syscoin do compete for the same marketshare. The advantage that BitBay leverages over Syscoin, however, is that BitBay is Peer to Peer – it doesn’t use blockchain as its basic infrastructure. The ultimate result of this is that BitBay will simply be faster than a blockchain-based architecture that has to continually stay synchronized to a server (without light nodes) and download the massive amounts of data that a marketplace would entail (images, descriptions, videos, etc.)
OpenBazaar is a more powerful competitor, offering many of the same features of BitBay and a superior marketing team, which is a big plus to OpenBazaar. However, BitBay wins out on the user experience aspect as OpenBazaar requires what essentially amounts to trusted third parties to mediate and settle disputes while BitBay is a fully trust-less exchange between two parties and those two parties alone. For this reason, BitBay has the clear advantage, and once they start focusing efforts towards marketing the product, it will easily be able to outpace OpenBazaar.
BitBay is a great piece of technology that has advantages by not being blockchain – individuals such as Chris DeRose often have the question of why do we even use blockchain in the first place, and this is a good query. Blockchain can be slow, inefficient, and overall a massive data and CPU hog – the key was never blockchain but decentralization. With that concept in mind, BitBay looks to be the finest solution we have to the centralized marketplace problem, and is a great investment for 2018 and beyond.
Join me next time as we delve deeper into the mid-cap cryptocurrencies and go over 5 more amazing picks to invest in. Remember to play the long game, and happy trading.