/biz/ - Business & Finance

Now it's still early for a lot of coins, and I think the novelty and the pumps for projects that really don't deserve it will continue (at least another 2-3) years. Now the irony behind Stellar/XLM is that in order for it to be the world's financial transaction backbone, the cost of usership needs to be so low per transaction to incentivize people to use it. Stellar's price point for transactions (0.00001 XLM per transaction) is so insanely low, while needing to exist to counteract potential networking spamming, if crypto/blockchain is the future of financial transactions, Stellar will likely be the primary network used. The problem for coin holders is that in order see sick returns on our investment, the coin needs to also be a store of value, which in the long term might make it not attractive to use as a medium of exchange. At first estimation, it would seem that a cryptocurrency could only be one of two things to be useful; either a mode of transaction where the price of the coin is so low and the number of coins is so high (i.e. inflationary) that it attracts people to use it, or in the case of Bitcoin, a store of value, something finite where the price increases because of limited supply (i.e. digital gold).

However...the reason I still hold, calculating the value will increase, is twofold.

Short to medium term: There is a shit ton of good news lined up about Stellar/XLM. IBM, being added to Coinbase, StellarX, being used by banks irl for money transmission in South Pacific, remmitance industry in Africa, purchasing of Chain with $500M worth of XLM, etc.

All of this news will translate into hype in the short to mid term, which will translate to pumping, just like the IBM announcement last year.