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November 01, 2013, 09:14:58 AM Last edit: November 01, 2013, 09:44:29 AM by Lethn |
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I don't understand all the hate for altcoins, yes, some of them are definite scams, but some of them are being totally honest about what they are, this is free market competition at its finest, here are some tips for spotting worthwhile currencies:
. Is it open source? This means programmers will be able to go through it and find any sneaky code or problems
. Do the devs post updates regularly and check over their own code?
. Depending on your ideology, whether it is deflationary or inflationary this could be a good/bad thing so make sure to check the absolute amount of coins that can be made
. Are the devs trying something new? If you don't know anything about the code behind it like me it's a good idea to ask people to give a fairly dumbed down version, PPCoin is an example where it has things like proof of stake and uses less power than other coins
. Check price rises, are the prices going up for a reason? Due to volume or difficulty where a lot of people are mining? Or has the dev in question just gone and made it artificially high by putting even less overall coins than Bitcoin, that's always something to check, always check trade volume on a coin
. Are they investing in infrastructure? If they are getting stores to accept it and getting up payment processors or getting payment processors to accept the coin that means they have an idea of what they're doing and the currency has a chance of becoming more than just a pump and dump for miners
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