Altcoins have proven to be unreliable again and again due to a various incidents. Yes, Altcoins can also bring us some gains but what if risks are much higher compared to advantages? And for Alt coins, risks have proven to be much higher compared to advantages
As a bagholder of such coins, we have a big risk to suffer a loss. Previously, Altcoins have caused lossed from:
- Getting hacked
- Turning out to be a scam
- Project failed (Terra Luna)
- Being bad tech and lacking to be competitive against Bitcoin
- Developers abandoning a project
- Failing to register at SEC
- Selling out to big investors
- Team members dumping coins masssively
- High inflation compared to Bitcoin
We can list much more reasons here but it’s a list of famous reasons already. And it’s a growing list, too.
A big issue: many Altcoins are centralized
It’s very obvious, why Altcoins are a big danger: a lack of decentralisation – or too much centralization, how we would view it.
Being centralized is making such coins very flawed and prone to hacks. Also, founders can be dishonest much more easily in a centralized project.
Decentralisation is key to make a coin less prone to hacks and Bitcoin, for example, is decentralized. And Bitcoin has proven to be very reliable.
PoW vs. PoS
Quite contrary to PoS, PoW is very hard or almost impossible to compromise. Not so for PoS, where more attack vectors can be found.
For example, PoS can be abused by rich stakers. Many PoS projects have a so-called pre-mining of coins allocated to the team and the team can abuse such pre-mined coins to gain influence about project decisions.
A large pre-mine is making a project centralized in many ways and devs can gain much influence by staking a large amount of PoS coins. PoW is not having such issues.
A similar problem is called “nothing at stake”, where attackers benefit from no cost to stake ETH or similar PoS coins. Should a fork occur, no matter if the fork is a friendly, accidental or a malicious attempt to rewrite history and reverse transactions, it’s a given strategy for any staker to stake on every chain. By doing so, he will get a reward no matter which fork will succeed and he will have no additional cost to do so.
In PoW, such a problem is not happening because PoW always means work (spending electricity) needs to be done. A cost occurs for every miner and he can’t mine on multiple chains because mining of a different chain means an extra cost.
SEC needs to crush Ripple
Ripple is a centralized shitcoin operated by fraudsters. It was confirmed multiple times, where Ripple’s CEO, Brad Garlinghouse, was involved in fraudulent shilling techniques.
Ripple is clearly a centralized project and SEC needs to take action against Ripple. Hopefully, SEC will win against Ripple because Ripple has committed lots of fraud already.
How can we avoid making a loss?
For us, it’s only possible to stay away from such shady shitcoins.
Many centralized Altcoins are a big danger.
Please, don’t buy such shitcoins.
We have much better coins, like Bitcoin.
As a bagholder of such coins, we have a big risk to suffer a loss. Previously, Altcoins have caused lossed from:
- Getting hacked
- Turning out to be a scam
- Project failed (Terra Luna)
- Being bad tech and lacking to be competitive against Bitcoin
- Developers abandoning a project
- Failing to register at SEC
- Selling out to big investors
- Team members dumping coins masssively
- High inflation compared to Bitcoin
We can list much more reasons here but it’s a list of famous reasons already. And it’s a growing list, too.
A big issue: many Altcoins are centralized
It’s very obvious, why Altcoins are a big danger: a lack of decentralisation – or too much centralization, how we would view it.
Being centralized is making such coins very flawed and prone to hacks. Also, founders can be dishonest much more easily in a centralized project.
Decentralisation is key to make a coin less prone to hacks and Bitcoin, for example, is decentralized. And Bitcoin has proven to be very reliable.
PoW vs. PoS
Quite contrary to PoS, PoW is very hard or almost impossible to compromise. Not so for PoS, where more attack vectors can be found.
For example, PoS can be abused by rich stakers. Many PoS projects have a so-called pre-mining of coins allocated to the team and the team can abuse such pre-mined coins to gain influence about project decisions.
A large pre-mine is making a project centralized in many ways and devs can gain much influence by staking a large amount of PoS coins. PoW is not having such issues.
A similar problem is called “nothing at stake”, where attackers benefit from no cost to stake ETH or similar PoS coins. Should a fork occur, no matter if the fork is a friendly, accidental or a malicious attempt to rewrite history and reverse transactions, it’s a given strategy for any staker to stake on every chain. By doing so, he will get a reward no matter which fork will succeed and he will have no additional cost to do so.
In PoW, such a problem is not happening because PoW always means work (spending electricity) needs to be done. A cost occurs for every miner and he can’t mine on multiple chains because mining of a different chain means an extra cost.
SEC needs to crush Ripple
Ripple is a centralized shitcoin operated by fraudsters. It was confirmed multiple times, where Ripple’s CEO, Brad Garlinghouse, was involved in fraudulent shilling techniques.
Ripple is clearly a centralized project and SEC needs to take action against Ripple. Hopefully, SEC will win against Ripple because Ripple has committed lots of fraud already.
How can we avoid making a loss?
For us, it’s only possible to stay away from such shady shitcoins.
Many centralized Altcoins are a big danger.
Please, don’t buy such shitcoins.
We have much better coins, like Bitcoin.
You're right about that, my friend. But most people won't pay attention to this because they only want to fill their pockets with money. Who cares about decentralization these days? People are dumb enough to buy a centralized "shitcoin" like XRP, with the hopes of getting rich quick. To the unware, XRP is a "banker's coin". It's no different than using a credit/debit card. You can risk getting your funds frozen by Ripple, Inc. just like they did with co-founder Jeb McCaleb. Totally not worth it, imo.
I doubt the SEC will "crush" Ripple, though. Especially when Trump proposed a Strategic Bitcoin Reserve that will include XRP in it. Not to mention, Ripple CEO Brad Garlinghouse had several meetings with the President himself. There are even talks of an XRP ETF. With people giving a damn about decentralization, you can bet a centralized "shitcoin" like XRP will rise all the way to the moon. At least, we know the hype won't last forever. It won't be long before XRP becomes a long lost, and forgotten coin. And we'll be waiting.
