Keith Bliss, president of Capital2Market, joins Yahoo Finance’s Jared Blikre to breakdown an ethereum competitor.
KEITH BLISS: Polkadot, for example, a DOT, Polkadot is an Ethereum competitor and a lot of programmers are now using that blockchain to build applications off of, because they consider it a little bit safer. It appears to have plugged in some of the pinholes that you see in the Ethereum blockchain that some programmers and engineers have cited as problems going forward.
That will start, that is trading, breaking away a little bit from the larger coins. You’re still going to see, until people really understand, until we understand what regulation may come in from some of these coins, till we understand the absolute applications of being able to use them as stores of value if we ever get there, and we are starting to see that.
For example, I don’t know if everybody saw the news, but El Salvador is now mandating that Bitcoin will be a currency that they will use. They’re doing that for lots of reasons. Of course, El Salvador has very poor country and a very small economy. But if you start to see the dam break there, Bahamas has issued their own coin, the Federal Reserve here in the US has talked about issuing their own cryptocurrency for a variety of reasons.
Anyway, the point being, is that until we see it being broadly accepted inside of the overall economy for payments, banking, cash transfers, the like, you’re going to see most of the all coins trade in sympathy to the bigger coins. But again, given all the coins that are out there, it’s easy to do some research and find the ones that have real businesses underpinning them in their movement, like Polkadot that I mentioned. And then you could make the investment accordingly, if you don’t want to have the volatile ride across the entire [INAUDIBLE].