Maksim Balashevich
Maksim Balashevich

The profitable psychology of altcoins

Maksim Balashevich, founder and CEO of cryptocurrency data-feed provider Santiment, kicked off 2017 by blogging that, “following the recent rise in Bitcoin, we believe the altcoin market is set to experience a similar bull market over the course of the next 6 to 12 months as cryptocurrency investment enters the mainstream consciousness.” So far, so correct. William Essex met Maksim Balashevich to discuss future use cases, crypto-competitive innovators and the wisdom of crowds.

William Essex: What are the distinct use cases for altcoins? Doesn’t Bitcoin have the advantages of other coins, plus a measure of - for want of a better term - first-innovator advantage? I wonder whether “This Coin Is Not Bitcoin” is an advantage in itself? Maksim Balashevich: No, Bitcoin doesn’t have the advantages of other coins. Smart contracts aren’t working there, to give the easiest example. Changes are impossible to introduce to the protocol directly. They need third-party solutions. Some of these solutions introduce conflicts of interest into the “miners-users-holders-business” relationship, so they do not get wide usage. For instance, a seemingly simple change like introducing 2mb block size can’t be implemented for more than an year even after everyone agreed to do it and the parties signed the agreement. WE: Acceptance of crypto-currencies, at scale, seems to be driven by an acceptance that digital-ledger and related blockchain solutions...continued

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