February 1, 2019 by Jeff Fawkes
Determining good cryptocurrency metrics means searching beyond market cap or yearly profit stats. Let’s see what to look for to distinguish between a solid working currency and a fake one like el Petro or Onecoin.
Also read: Kik Expects SEC to Come Knocking Over Kin ICO
Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & expertsGood Cryptocurrency Metrics Are Nuanced
How can you measure a coin’s market cap in U.S. dollars if the dollar is losing value? Everything in the world loses value over time, except for good wine and Cuban cigars. Let’s leave the old ways of measuring in the past. Here’s a checklist of the eight most important cryptocurrency metrics that will determine the likelihood of a project having long-term success.1 – Node Decentralization
Imagine reading an article that proclaims some new coin can do 100,000 transactions per second. According to those authors’ tps claims, the implication is that their cryptocurrency will “kill bitcoin” and conquer its place. Bitcoin can only handle seven per second.
They forget to mention that the level of node decentralization is important, not just the transaction capacity of the network. That’s why bitcoin can’t process 50,000 tps, as it needs all the nodes to be simultaneously synchronized. Bitcoin has a large network of nodes and small blocks so it can’t allow for huge transaction volumes per block.
Bitcoin possesses a network of roughly 10,000 nodes, per CoinBillboard, and that’s only the visible part of the iceberg. That is only the nodes that openly announce their existence. Other bitcoin nodes are hidden in the Darknet: 60,000-70,000 of them according to A. Antonopoulos. There could be even more with some estimates seeing roughly 100,000 hidden nodes.
Dash has only 5,035 masternodes. This means that it is much ...