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Neo or Ethereum – where is your investment safer

crypto currencies

The advent of cryptocurrencies and its stellar rise, despite relative infancy and new technology, have arguably impacted the marketing world significantly. Booming in the previous year, 2017 saw a rush of millions of money poured into the cryptocurrency market. And considering its continuously growing network, there is no sign that 2018 will be any different.

Over the last few years, cryptocurrencies and other blockchain projects were able to gain very impressive returns that helped investors to be ridiculously successful. However, inevitably, many had experienced its dramatic declines as well. But despite the risk, more and more people are looking for the next big thing in the market which has the highest potential to multiply ones’ investment. And while there are hundreds of cryptocurrencies, that although represent opportunities to achieve sustainable growth, are also highly risky; and from which it is quite hard to predict which one gives the best result, this article will focus on the two of the most popular alternate coins (altcoins) of today – Ethereum and NEO.

Ethereum and NEO are both high-profile altcoins with massive community support and which many investors swear by one or the other. However, as “the competition for the coin is expected to become tougher in 2018 as new players enter the domain”, the question of whether which of the two will be left holding the scepter becomes less important – but rather, where will investments be safer.

To attempt to answer this question, let’s take a closer look at the two altcoins.

Ethereum versus NEO: Philosophical Differences

Ethereum, according to its website, is “a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.”

NEO, on the other hand, is defined as a “non-profit community-based blockchain project that utilizes blockchain technology and digital identity to digitize assets, to automate the management of digital assets using smart contracts, and to realize a ‘smart economy’ with a distributed network.”

These respective definitions might sound remarkably similar – because, in many ways, they are. That is, both of them “run on a custom built block-chain that can move value around and represent the ownership of the property.”

Moreover, at first glance, these respective definitions might also imply that the two altcoins share the same objectives as both are aiming to dominate the cryptocurrency market by playing the similar roles of being the blockchain platforms for the new internet (or platforms that offer decentralized functionalities) such as Decentralized Applications (DApps), Initial Coin Offerings (ICO), and smart contracts. However, they aren’t, as there are subtle differences:

Ethereum’s goal is to develop its platform in response to new demands – that is, consolidating its role as the go-to platform for ICO’s. Whilst, NEO’s goal is mostly focused on developing its platform for future demands by realizing a so-called “smart economy” that will feature digitized physical assets which can be sold, traded, and leveraged through smart contracts.

Ethereum versus NEO: Backing and Partnership Differences

Because Ethereum is a certified government-agnostic, it is supported by some of the biggest global corporate names such as Enterprise Ethereum Alliance – making it enjoy popularity tointernational audience and thus, much larger support from the tech community.

All the same with NEO – the Chinese government might have gone far as to ban the ICO’s, but NEO remains to be China-based and Chinese-focused. Despite the country being seemingly unfriendly to the industry, NEO manages to receive backing from national banks and states – which allows it to capitalize on the huge Chinese market. Furthermore, it is also supported by Alibaba and Microsoft.

Ethereum versus NEO: Target Market Differences

There can be no doubt that Ethereum and NEO have the huge potential to become the next Bitcoin. Due to the impressive capabilities of their pluses to outweigh the minuses, both of which are continuously gaining popularity especially in comparison to other cryptocurrencies in the market.

Ethereum, which although has already been adopted by blockchain startups worldwide, is proportionally concentrated in the Western countries. Meanwhile, NEO is largely capitalizing in China.

Looking closely, Ethereum seems to benefit from a certain fallacy of thought that “West is the best” – which is quite true in terms of Western products catering to Western markets. But many fail to understand that Chinese investors are less likely to adopt Western technologies as they (like many East Asians) are far readier to support home-grown technology taking pride in and loyalty to national products.

NEO, however, might be having the advantage of a technologically-driven population that is nearly 1.4 billion people strong; not to mention that Chinese investors make up a very large percentage of the world’s cryptocurrency investors. But one should not fail to consider that the involvement of the Chinese government, which might have made NEO a state-mandated currency, plays a significant role in building a loyal following from Chinese investors.

Ethereum versus NEO: Where is your investment safer?

With the capabilities (i.e., both projects are open source and has massive community support) and differences (i.e., serving different markets and the opposite directions their visions are taking) that these altcoins have, should there really be a question of which among Ethereum and NEO is better, or should you invest in both?

While NEO appears and is turning out to be more investment-worthy – focusing on creating a “smart economy”, it should not be forgotten that Ethereum still holds the position of being the second most popular cryptocurrency in the world with a total market cap of $105 billion as compared to NEO’s $9 billion (as of January 25, 2018).

Thus, given that we are dealing with two very robust technologies, it might be better to conclude that there is certainly space aplenty for both altcoins to coexist.

And as to where your investment will be safer, perhaps the most suitable answer is in the altcoin where you can best tolerate the risk and that you understand well. There are more and more investors getting on board who often have a very limited understanding of the technicalities of the cryptocurrency they support, ending up investing based on brand loyalty and hearsays and even merely along the lines “Ethereum of China” NEO vs Ethereum.

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Finance

Why Entrepreneurs Often Fail

entrepreneur

Entrepreneur is an interesting word. It conjures up thoughts of bravery and superior business wisdom. It’s a person who sees in something what most of us fail to see.

Take that idea, develop it and in turn found a business on it. When it works, it’s pure genius, and we’re in awe of their aptitude. However most businesses fail so most Entrepreneurs are less skilled than we give them credit for.

Bravery in launching a new business is really just a higher level of risk taking and with good debt it’s more acceptable. Good debt is a loan that used to create a revenue, i.e. it’s an investment used to generate and grow an income. Here’s a more extensive definition of good debt.

So the Entrepreneur or business will increase its borrowings via a line of credit, or even a home loan to invest in its products or people with the objective of earning more revenue.

The risky part of borrowing is the end goal is speculative i.e. its usually a well thought out plan but it’s not actually happened and numbers have to work out, i.e. the increase in revenue due to the loan, far exceeds the costs of the loan and other additional expenses, like more staff or systems.

Entrepreneurs have an appetite for risk and as mentioned it sometimes works out but mostly it doesn’t so it’s important to understand the pros and cons of business loans.

Once the good debt options run out, then the only way to go is bad debt loans and this is when it can all spiral downwards for businesses. Bad debt loans are essentially non income producing so they’re a liability. The loans can not be leveraged to make money. They can be written off against taxes and there is also bad debt recovery which is another subject altogether.

Startups fail for many of the same reasons including:

  • Lack of working capital – affecting operations
  • Liquidity issues with cash flow – struggling to pay staff, suppliers
  • Business growing too quickly – not enough resources to deliver on orders
  • Ego – too big to fail

Often it’s not just one thing either but a combo of challenges that just become too much to handle alone. The smart operators don’t go it alone though they have mentors.

Entrepreneurs Need Mentors Too

Behind every good Entrepreneur is a mentor. Yes this is not the adage you were expecting but it works.

Mentors keep us in check. They’re our sounding boards, listening to our rants and raves. Offering an objective viewpoint and advice on the direction we should take.

Of course no one person can be trusted to do the lot so more than one mentor is recommended. The experience and trusted authority from mentorship is recognised in just about all great leaders. Think of the big names in business today and they’ll say they have amazing mentors.

Facebook’s Mark Zuckerberg had Steve Jobs, and Bill Gate had Warren Buffett.

Maybe this is where some Entrepreneurs go wrong? They either don’t have mentors or they don’t use them enough.

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Finance

Top Six Ways Cash Advance Can Help A Business Grow

cash advance

A cash advance or merchant cash advance is a form of short-term loan given to a small business. Cash advance are payable with interest rates usually around 25% of the principal. The loan is paid by deducting a percentage of sales made periodically (usually weekly) from credit cards.

Cash advance are useful because the lenders do not ask for credit scores, collateral and other things that other banks and other lenders will ask for. Cash advance are also fast and are useful when loans are needed urgently.

If used the right way, cash advance loans are one of the best ways to grow a business. Here are the top six ways by which cash advance can help a business grow:

1. Payment of staff salaries:

There are moments when business is bad, but you need to pay your employees. A cash advance will help you to pay your employees and keep them motivated. If you are a small business looking to hire employees to handle more jobs, but you don’t have the means to pay them yet, you can get a cash advance to help you pay their salaries at first before you find yourself on your feet.

2. Purchase of equipment:

Imagine that you are a contractor, handyman or you are involved in any other kind of business, and you need to get a job. But the requirements of the contract or job involve having some equipment. You can collect a cash advance and use it to buy the equipment so that you can get the job or win the contract. Then, you pay back the cash advance gradually.

3. Stocking of inventory:

A lot of businesses use cash advance to buy inventory and stock them. You need to have goods in stock to satisfy your customers and retain them. When you’re just starting, it may be difficult to buy all the inventory items that you need yourself. A cash advance will help you do that. If you deal in seasonal goods, you can buy a lot of goods offseason with a cash advance.

4. Advertisement:

Without advertisement, no one will know about your goods and services. With advertisement, you can ensure that a lot of people know about your products and patronize you. But advertisement could be costly. Branding, building a website, radio and TV ads are expensive. A cash advance could pay for all these, and you pay back as the profits start to roll in.

5. Business expansion:

If you are a small business, expansion of the business could be difficult and expensive especially if you are opening a new branch in another location. You’ll need to replicate most of your assets, hire new staff, spend on advertisement and other things. A cash advance can help you with all these, and you then use the proceeds from the cash advance to pay for everything.

6. Increase working capital:

Working capital is the money that you use to manage the day-to-day affairs of your business. As a small business, you might need a cash advance to help you increase your working capital, so that you can increase your business operations. You will earn more profits which will help you repay the cash advance faster.

Conclusion

If used the right way, a cash advance could be what will take your business to the next level. Before taking the loan, decide how much you need. Plan out how you will spend it before receiving it. Meet your lenders and explain why you need cash advance to them. And once you receive the loan, use it for the exact thing you collected it for. Do not divert the loan for other purposes.

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Finance

Blockchain & Cryptocurrencies What’s All the Fuss About

cryto currency explained

“Blockchain” and “cryptocurrency” are among some of the most-searched terms in Google recently thanks to news about BitCoin’s price surging. Most people don’t have a clue about what these terms are (hence the searches) but they do know that cryptocurrencies are a form of investment like forex. Unfortunately, while the principle is similar because cryptocurrencies are a traded form of currency, the way BitCoin works is completely different to any kind of currency pair that you can find.

To help you out, we’re going to talk about blockchains and cryptocurrencies to help you achieve a better understanding of what it’s all about.

Defining Blockchains and Cryptocurrencies

Let’s start with the basics and explain what these two terms mean.

  • Blockchains are essentially digital edgers where transactions in cryptocurrencies are recorded. It’s a form of technology that enables cryptocurrencies to exist in the first place. Think of it as a gigantic database where every single transaction is kept in chronological order. You don’t need to understand how it works if you’re interested in BitCoin or another cryptocurrency, but it’s nice to get a general overview of what it implies.
  • Cryptocurrencies are digital currencies that utilize encryption techniques to safely regulate their value and also validate transfers. These cryptocurrencies are independent of banks and they’re generated digitally. Two good examples of popular cryptocurrencies are BitCoin and Ethereum. There are many different advantages to both the currencies and their values fluctuate drastically over the years. Ethereum, for instance, was worth $10 per unit in 2017. Currently, they are quoted at around $800. Ripple is another popular cryptocurrency that has recently grown in popularity.

Now that you have a basic understanding of blockchains and cryptocurrencies, let’s see what the fuss is all about and why it’s making waves in the news.

Advantages of Cryptocurrencies

So why use cryptocurrencies over regular currency? Here are just a couple of the most popular advantages:

  • Lower transaction fees. Unlike other currencies, there are lower fees involved when making payments with cryptocurrencies.
  • Immediate transactions. Transactions are immediately resolved when using cryptocurrencies unless a third-party is involved.
  • No risk of fraud. Cryptocurrencies are completely digital and, unlike paper money, cannot be counterfeited.
  • No risk of identity theft. Since your personal information isn’t handed out when making payments with cryptocurrencies (unlike credit and debit cards) you’re not at risk of identity theft.
  • Decentralized currencies. Cryptocurrencies are decentralized which means that there isn’t a single source or authority that governs it.
  • Universal use. Virtually every country can adopt cryptocurrencies because they are not bound by various rates like exchange rates. They can be universally used as long as a cash system supports it.

Industries That Use Cryptocurrencies

As you might expect, cryptocurrencies are slowly becoming more mainstream and being used in all kinds of different industries. One of the first industries to adopt the use of cryptocurrency is the technology industry. Early uses of cryptocurrencies involved being able to purchase goods on the internet or trade digital items and pay for services. There are now many uses for cryptocurrency on the web, such as being able to make donations with it or accept crowdfunding payment.

Nowadays, the use of cryptocurrency is widespread and marketers are all over it, using social media, blogs, lead generation pages to spread the word. So which industries are using it right now? Some car dealerships offer vehicles for BitCoins and there are even some realtors that accept BitCoin payments. With the use of BitCoin expanding so rapidly, don’t be surprised to see your local coffee shop offering goods for cryptocurrency in a few years or even months.

Here’s some information on two of the most popular cryptocurrencies: Bitcoin and Etherum and why you should take notice of Ripple…

Bitcoin

Bitcoin is the world’s first and top cryptocurrency that had gained popularity and a huge increase in value. It was created in 2009 by a person under the alias Satoshi Nakamoto. Its main feature is that transactions can be made without the middle man – meaning that no banks are involved!

You can use Bitcoin to book hotels, pay for Xbox games, and buy furniture. But most of its hype has recently come from people trading it. As of now, its price is $8207.77 whose price used to be past the $10,000 mark in 2017.

Another reason why Bitcoin is amazing is because it can be mined. A person (company or group) can mine Bitcoin through record-keeping and advanced math. This is how it works, when someone sends Bitcoin to someone else, the network records it and then records the other transactions and places them on a “block.”

Miners use powerful hardware and specialized software to convert the blocks into code sequences known as “hash.” Once a new has is made, the miners who found it are awarded in Bitcoin. As of now, miners can obtain 12.5 Bitcoins which worth around $225,000 at this time.

Bitcoin is ranked first because it started new concepts such as “decentralization” and “peer to peer trading.” We would see other cryptocurrencies, such as Ethereum use this concept to help users make apps and trade their currencies at a rate that’s faster than Bitcoin.

Speaking of Ethereum…

Ethereum

Ranked second on our list is Ethereum. Like Bitcoin, Ethereum is running on a public blockchain network. While Bitcoin and Ethereum are completely different in technology, their largest distinction is their difference in capability and purpose.

Ethereum’s blockchain is used to run program code for any decentralized application. Instead of miners obtaining Bitcoin, they receive Ether, the main currency that fuels the network.

Ethereum also has smart contracts, which acts like a self-ran computer program that automatically execute once specific guidelines are met. Since they are running on the blockchain, the code can run without downtime, third party interference, and without censorship.

What makes Ethereum a top cryptocurrency is its ability to let startups create decentralized apps. They can receive funding from other Ether owners to help power their app without the long process of seeking a venture capitalist to invest in them. Ethereum is now priced at $857.70, which we can only expect it to grow due to the development apps on its platform.

Ripple

Ripple is the third top cryptocurrency on our list. Like other cryptos, Ripple has a distributed ledger network that allows users to help each other validate transactions. This makes it more efficient and faster than traditional centralized authorities.

What stands Ripple apart is its transaction speed. On average, Bitcoin takes about 10 minutes to complete a transaction. Ripple can accomplish this task in under 60 seconds. This makes Ripple more appealing to a mass market, who needs a faster network to help them pay for goods.

Ripple is currently developed by Ripple Labs. As of now, they have of 100 billion XRP available, as its unable to be mined. Ripple’s current price is now $.73, making it the cheapest option on this list.

While other cryptos are used for separating financial transactions from centralized banking, Ripple seems to do the opposite.

Closing Thoughts

To conclude, we believe that each of these cryptocurrencies provides a lot of value into today’s current market. Not only are they bringing in new financial options for users, but their combined technology helps make transactions safer and faster. Ultimately, it will be interesting to see how these cryptocurrencies will act as blockchain technology continues to evolve.

Disclaimer: This post was made to educate users on cryptocurrency. Don’t take it as investment advice.

Sources:
https://www.digitaltrends.com/computing/what-is-ripple/
https://www.coindesk.com/information/what-is-ethereum/
http://money.cnn.com/infographic/technology/what-is-bitcoin/
https://www.cnet.com/how-to/what-is-bitcoin/
https://www.mirror.co.uk/tech/what-is-bitcoin-currency-crash-10409961

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