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The Main Net: Tron’s (TRX) tenfold advantage

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Have you ever heard about Peter Thiel? If you are into entrepreneurship, this is a good guy to follow. He co-founded PayPal and the Founders Fund (that backed Bitcoin to the tune of 10-20 million last year). He’s been a crucial element in enabling many ventures to take off, some of them are now big players. He was, for instance, one of the first Facebook investors. 

Back then his stake was half a million dollars (10.2%) and right now Facebook is worth over five hundred billion. Just imagine that! These savvy business decisions are the reason why Mr. Thiel is now worth 2.5 billion.

Mr. Thiel has been regarded as a world leader and authority because of his business philosophy. It comes from a man who has actually walked the walk, not just talked the talk. Among his most famous ideas is the idea of competitive advantage. 

It’s about how companies can enter an industry and give previously established powerhouses a run for their money. Take the internet search engines industry, for instance. Google is king, for sure.

Microsoft has spent tens of billions in Bing trying to make a dent in Google’s armor and it’s been both expensive and useless. 

Google still retains about seventy-five percent of the world’s market while Bing usually gets users from Windows’ default settings in new PCs. Why is it that nobody has been able to compete with Google really? There are billions to be made by achieving that.

Because everybody else has lacked competitive advantage so far.

Mr. Thiel’s book, Zero to One, posits that new companies can enter markets in two ways. One way is just to avoid all competition by going for a new industry thus establishing themselves as a category of one (which was what Google was, for the most part, at the time it came online). 

But there’s another way. They can go into an established industry with established players (and beat them) as long as they have a product that offers a tenfold advantage

Now, tenfold doesn’t sound particularly subtle or elegant, so it doesn’t fit well into economic theories or MBA courses, but it offers a standard that’s easy to understand and assimilate. 

It just means that if you are the new kid in town and your product is not ten times as better as that of the companies who were in the field before you, then customers won’t have much incentive to prefer your product over theirs. 

Markets are arguably efficient enough to notice a product that’s even only ten to fifty percent better (this remains a controversial idea). The point here is that a product that ahead of the competition (even by just a smidge) will attract users and their money.

But real-life consumers do not have “perfect” information, and they don’t take “perfect” decisions either. Who really tries both Comcast and At&t for a full month before choosing which one is best? 

People tend to feel safe with the products and services they already know, and they like to stick with them. Making them change their mind needs for them to see an overpowering advantage in switching. 

Mr. Thiel illustrates his point in the book using solar energy as an example. So far it’s failed to bloom as most economists thought it would by this decade. 

Besides that, no company has been able to stand out from all the others as a better or cheaper option than all the rest. As a result, people keep relying on electricity produced by power plants and gas.

Tron’s tenfold competitive advantage

Mr. Justin Sun, Tron CEO and founder, studied entrepreneurship under Alibaba‘s Jack Ma and is well aware of the ideas presented by Mr. Thiel’s book and he’s taken them all into account in building and leading the Tron Foundation. 

Tron is indeed a category of one, for a start. It is a blockchain, it is a crypto coin, but their mission and scope are much wider than Bitcoin, Ripple, or any other cryptocurrency. Tron aims to use the blockchain technology to decentralize the web at full. 

In particular, they want to empower content creators so they can monetize all their content without any big corporation taking away from them even the smallest chunk. Tron is not about taking fiat currencies or the banking system head-on (as Bitcoin is), but about making the web more democratic. 

It’s not so much a threat for Bitcoin as it is a fantastic project worth investing in and keeping in sight. That is Tron’s tenfold advantage. So Tron is tackling the cryptocurrency world by being both a category of one organization AND having a competitive advantage. That doesn’t happen very often.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pxhere.com

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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