Contrary to many opinions, Bitcoin is not the sole currency in circulation. There are various currencies rising in popularity, such as Augur. This is mainly due to its easy deployment by anyone as an open-source market software.
What is Augur?
This is an open-source, prediction market, which happens to centre on the Ethereum blockchain system. Founded in 2014 by Joey Krug and Jack Peterson, the release of its alpha version was in 2015 on the Ethereum test net.
Its aim is to give people a platform, which they can use to increase democratic and decentralized finance on a global scale. How it achieves this is giving anyone at anytime and anywhere the ability to speculate and make derivatives at affordable costs. It also has prediction markets that give users better forecasts and speculation mechanisms, so that each financial market reaches equilibrium.
Why is Augur different?
The blockchain technology of Ethereum acts as a basis of improving Augur. Since it is uses these blockchains as a basis for operation, it eliminates middlemen from the picture, therefore removing risks of runaway trading costs, bringing them down to equilibrium levels.
It is also among the few cryptocurrencies that gives users returns other than speculation alone. In fact, any gains that Ethereum makes will likely reflect on Augur, since it uses the same blockchain system.
Alternative coins to use
Augur has the potential for increasing popularity with time. However, other coins provide viable alternatives, and we have put a list of some of them.
Lisk – founded in 2016, it aims to simplify development of blockchain technology, therefore allowing for faster transactions.
Bitcoin/XBT – the most famous cryptocurrency, from 2009. It is similar to Augur because of blockchain application system.
Ripple/XRP – based on open-source internet protocol currency, and formed in 2012.
Cardano – thought to be an open-source digital currency, and constantly evolves itself from research and scientific philosophies.
Ethereum/ETH – this is a 2015 decentralized software platform allowing smart contracts to operate without interference from third parties.
NEM – this is another blockchain currency from 2015, and utilizes Java script in its coding.
How Augur works
The Augur platform uses Reputation tokens, abbreviated as REP. The use of the tokens enables the security of Augur because it makes REP holders judge the outcome of prediction markets on the platform. In fact, as long as you are a REP holder, you will participate in the accurate reports on event outcomes, and it guarantees you a share of the market fees the platform generates.
On the platform, you have the ability to create a prediction market about any subject you want to explore. After events happen, you need to select the correct outcomes to receive payments. You use crowds to report outcomes instead of relying on third parties. The higher your reputation on the platform, the more money you get.
Trading in Augur currency
Augur is an interesting currency because it behaves more as a betting platform than a currency platform. It uses the crowd wisdom to out master predictions from experts on every topic under the sun. The result is a devolved prediction market.
There are two ways to acquire REP tokens, through fiat money and cryptocurrencies (through exchanges). Both will require you to set up a digital wallet, just as with any other cryptocurrency. Below are some steps to follow using fiat currency.
Make an account on your preferred exchange provider.
Confirm your identity.
Deposit money – this can be through bank transfer, wire transfer, credit or debit cards or other methods available.
Purchase REP using the money you deposited.
You will need to buy Ether or Bitcoin first, and then trade this for REP tokens. The coins will vary, according to the rates of the exchange provider.
After your purchase is complete, the REP tokens will go directly into your wallet address or your account on the exchange.
Augur prices and trading history
Since the currency is newer than most, it does not have a long history of trading. However, that does not take away the volatility of its price, with rates showing the REP token with a value of $204 (in December 2017) and reducing to $92 a few days later. It now has a current price of $45.06.
Is it worth trading in the coin?
This question is complicated, since even experts generally see investing in cryptocurrency as a risky venture with low returns. The reasons given usually cite the highly fickle nature, and the unpredictable rises and falls in value.
The success of investment will depend on the uptake by individuals and businesses. The currency offers you extra security in transactions as well as multiple mining methods, making it cheaper.
Augur gives its users a better choice than prediction markets that are more centralized. This gives it high potential because it allows anyone to thrive, especially in the gambling and financial sectors. It also encourages a culture of integrity, since rogue actors get punishments and good actors receive good reputations.