In my previous posts, I enjoyed talking about the coins that still had tiny values, in order to show their potential to rise up fast and with the possibility to have more profit thanks to their evolution. Trying to find the coin which is the most likely to become the future of Bitcoin is indeed a long-term task I am wanting to pursue. But sometimes, you have to study coins like MakerDAO too. I had literally no idea about it (with more than 1450 coins, obviously you have to learn everyday). But what I just found is a rare and innovative project involving 2 coins and the creation of a decentralized stablecoin. Let's have a review !

---About the coin

The coin is called Makercoin, or MKR, and is built on a system which is called the Dai Stablecoin System, it's a bit more complex system when you compare it with the other coins, but easy to understand: it's a dual system: 2 coins that we're gonna talk about here: one that is meant to have a fixed value (Dai, staying stable at around 1$, as close as possible), and one that can be called the "volatile" part: Maker. I will review both coins as they are parts of the same system. The first thing I noticed about Maker was its value: more than 1660$.

When I started studying it, I found it was linked with this Dai coin whose value stays around 1$. They are both essential components of the same mechanism, with MKR holders literally governing Dai in order to minimize its volatility against the USDollar, that's why MKR has a crucial role on the platform in order to maintain the stable value of Dai. Indeed, MKR has a governance role, it's a utility token (to pay the fees to generate Dai) and a recapitalization token. For more details about how it structures the platform, here is its site:

https://makerdao.com/

Right now, as a reminder, you only have 3 coins who have managed to go above 1000$ and stay there for a long period (we are not taking Dash into account, because it did pass it, but because of the recent fall, it is still under 1000$ right now, not having managed to recover from it). These 3 coins are: Bitcoin, Ethereum and BitcoinCash. You can see this clearly by asking coinmarketcap.com to classify the coins by decreasing prices, not by decreasing marketcaps as it is done by default. That way, you're gonna see that this coin has an even higher value than Ethereum, and only 200$ behind BitcoinCash. So what lacks for it to get higher than its 35th rank (which is great for such an unpopular coin by the way) is both the trade volume and the circulating supply (i.e. number of coins available):

-its volume traded in the last 24 hours is only 1 million $, whereas the 3 other coins are way beyond 1 billion $
-there are 30 times less MKR coins available than BTC or BCH coins right now, and 150 times less MRK than ETH coins

Here are the 4 most valuable cryptocurrencies right now.
Screenshot from 2018-01-21 06-46-40.png

But there are more things to be said about this system than simple statistics. It has clearly been created for a purpose. Here it is: bringing stability to the blockchain. Dai is a decentralized coin. It is meant to be independent from the other coins. Though it is built on the Ethereum blockchain, it is indeed a smart-contract platform. Its main goal is to minimize its own volatility relative to the US dollar, as coins like Bitcoin or Ethereum fluctuate up and down a lot, so Dai was created in order to have a coin on the whole market whose value doesn't fluctuate very much, as an attempt to bring stability to this very volatile market.

Unlike Makercoin, whose crucial and multipurpose role in the structure was detailed above, Dai is meant to be used for payments and savings. Its rank may be 509th, but this doesn't represent how useful it can be, it only tells about pure marketcap and value. Though in order to be useful, some coins don't necessarily have to be ranked high.

If you want to know more about the processes used in order to keep the value of Dai at the same level, I can only advise you to take a look at their website again, which is well-detailed by the way, one of the most complete crypto websites I've seen so far. The whole team seems very serious and dedicated, they know where they want to end up and how to reach that goal for sure. Their white paper is very technical, it gives all the details of the implementations and methods they are using in order to reach that ultimate goal of stabilizing the value of the Dai.

---Evolution

Evolution of the value of MKR since its creation (3 years ago).
Screenshot from 2018-01-21 08-57-05.png

To sum it up, it quickly rose from nothing to a few hundred dollars at the end of August 2017, before stabilizing and having a first burst during December 2017 to 1750$, though quickly correcting and fluctuating around 1000$, before a second burst after last week's "general fall", this one leading it to where it is standing and oscillating right now: around 1670$. Keep in mind the coin stayed with no hype for 3 years before that quick rising up.

Evolution of the value of MKR in the last 7 days.
Screenshot from 2018-01-21 08-57-35.png

We can see it recovered quickly from the main fall that happened in midweek, its value gained almost 1000$ (from 750$ to 1750$) while other coins all struggled in order to come back at their initial level. This tells a lot about its solidity. It can also be linked with the fact it is independent from the rest of the market. Still when the market fell down, it did have a repercussion. This is after all built on the Ethereum blockchain. But whatever happened, it's managed to rise up even higher than its initial level, which proves its autonomy and the fact it plays a key multipurpose role inside the Dai Stablecoin System.

Evolution of the value of Dai since its creation.
Screenshot from 2018-01-21 09-56-05.png

Since its launch on December 17th 2017, Dai has quite always kept the same value, with tiny oscillations around 1$. There was one event we can call an anomaly, as it went down to almost 0.72 $ between January 9th and January 12th 2018. But all in all, it has managed to stay relatively close to 1$. You have to take into account it resisted the main crash that happened a few days ago; you can't deny how it really went through that, meaning it can be a very efficient shelter if you need to protect some holdings. It is the first fully-decentralized stablecoin built on Ethereum. So there can be glitches as well sometimes. The main thing to keep in mind is the fact the MakerDAO team has been able to build the first working decentralized stablecoin that has held stable today despite the volatility in broader crypto markets.

---What I think about it

This project is yet another proof that in this crypto world, literally anything can happen if you put enough dedication into it. What the mind can create can be achieved by the motivation and dedication. This is for me as incredible as a breakthrough as if a robot managed to create another robot (what we've already managed to implement in some factories and laboratories by the way): a coin generating another coin that is meant to have a clear purpose is something crazy when you think about it.

I would not recommend investing into MakerDAO right now, I have a rule not to invest into anything who already got past 1000$, this is just pointless as you obviously aren't making much profit by this stage. But still, look at any down trend as an entry point buy, you never know. It will be successful though, in my view, it will stay at this level and can even reach 2500$ by the end of 2018, even when you think about the fact it could have a few drops; still, as it is meant to be autonomous, you can trust it, even when the other coins fall.

Let's consider Dai now: this surely won't make you money, but it will have a rare, unmatched usefulness if you intend to just keep something and you don't want to lose it because of the usual market fluctuations. Let's suppose you end up having a decent amount of ETH, or BTC, and you are in a situation when you fear a market crash, so you obviously want to move your holdings, but without having to withdraw them as fiat (linked with the fees getting higher and higher), so you want to keep it in a safe place which is like a shelter against any kind of crash inside the coin market: Dai becomes the first choice ! You know it can't fall down. Its main goal is to keep the value of 1$. At least there's something you can firmly rely on, which can't be taken for granted inside this very uncertain environment :D

static1.squarespace.com.png

By the way the MakerDAO team are hiring too, right now they're only looking for people who have ideally lots of years of experience, whether in marketing, automation engineering or informatics development (data-related). If you're a tech-enthusiast, especially a crypto-enthusiast like me, you wouldn't want to miss such a train. I am right now sending my CV to many of those ICOs just to have a chance to participate in this new revolution that could just end up changing our conception of money and turn the system around.

Here is their main site: https://makerdao.com/
Career opportunities: https://makerdao.com/careers/
A well-detailed white paper (21 pages, very technical, so take your time): https://makerdao.com/whitepaper/DaiDec17WP.pdf
Interesting articles about this project:
bitcoinist.com/creating-decentralized-digital-global-economy-dai-goes-live/
https://medium.com/@MakerDAO/introducing-the-new-whitepaper-for-the-dai-stablecoin-system-e7c6caabcfc4

Imagine being paid in crypto or partly in crypto, that would be fun. Remember life is only about fun ! Sid Vicious said it ! Let's end this wise analysis with crazy words !

That's it ! Thanks for your attention ! I will be back soon with more of the same kind ! Stay crazy and keep making fun of life instead of letting it make fun of you :D

Always expect the best, but be prepared for the worst ! :D

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https://soundcloud.com/user-845067406/hydrogen (with the most successful creation I believe, but you can also take a look at the others)

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A rare dual system inside the crypto world: MakerDAO (most unpopular "high-value" coin) and Dai, the coin of stability

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