Holding on to specific assets or asset has always been a useful investment strategy, even before the coming of cryptocurrencies. Today, with the crypto market being more uncertain than ever, many investors wonder if it is the right thing to invest in stellar cryptocurrency in 2020?
Of course, things change depending on the crypto in question, but today, we are going to talk about why is it a good idea to invest in stellar cryptocurrency in 2020.
What is Stellar Cryptocurrency?
Stellar cryptocurrency is a payment technology made upon the Ripple protocol but has changed a lot since its launch. It is a blockchain-based platform that facilitates global cross-border transfer including payments. The goal of Stellar is to allow users to move money across borders in a quick, reliable and cheap way.
Stellar cryptocurrency is a unique technology that offers the ability to exchange cryptocurrency assets and avoid losing money on commissions instantly. In this light, many institutions all over the world currently use Stellar technology, and actively investing in the development of the project.
Furthermore, Stellar is also very different from Bitcoin
when it comes to transaction approval. Besides using the whole network to validate a transaction, Stellar operates with a quorum which is just a part of the entire pool.
The quorum is what makes Stellar function so fast in conducting transactions. Due to this feature, Stellar is considered to work excellent for nonprofits, small banks, small businesses, and inside-corporation transactions.
Stellar Cryptocurrency Objectives
Just like ripple
, Stellar is also a cross-border, payment and transfer system. It connects financial institutions with an aim to reduce transaction costs and time lags.In other words, Stellar wants to implement a blockchain solution that can improve the state of the global financial system by drastically reducing transaction time and costs.
Stellar’s primary objective is on the developing economies in the areas of bank loans and remittances to those individuals who are still outside the scope of the banking services. It does not charge institutions or individuals for using the Stellar network.
It, however, receives initial funding from the payments startup stripe and donations from institutions like Google.org, FastForward, and BlackRock
. Therefore, it covers its operational costs by using the 5% of Stellar lumens set aside initially for the purpose and by accepting tax-deductible public donations.
Stellar secures essential partnerships in the payment and banking industry BloomX, a private company focusing on giving platforms and solutions for banks and money service business, has recently chosen Stellar as their preferred blockchain and digital currency
Another crucial recent partnership is IBM. The technological giant has chosen Stellar as its main blockchain solution for remittances and cross border payments and is running verification nodes and developing projects in the network. Therefore, these partnerships foster Stellar to a much wider audience.
Lastly, Kik the popular messaging app is also working on the Stellar cryptocurrency network through its Kin ecosystem. Concerned with the scalability problems of Ethereum
; they see Stellar as a more suitable option for micropayments integrated into their messaging.
Should You Invest In Stellar?
Stellar displayed some impressive tenacity last year. Stellar creators designed it as a payment protocol with a lot of potential and high ambitions.
To start with, it produces a high transaction speed, which permits it to process 2000 transactions per second. Therefore, each transaction gets validated within a maximum time of 5 seconds.
Moreso, it is a huge decentralized cryptocurrency. It doesn’t have a set number of validators, giving room to incorporate more participants.
The stellar cryptocurrency also has lower costs compared to a few of its other crypto competitors.
Therefore, looking at all the predictions given by market enthusiasts; traders, publications one thing to note is that there is a lot of hope surrounding Stellar’s growth in 2020.
Stellar cryptocurrency is one of the oldest, fastest and highest-ranking cryptocurrency projects. It can offer high speeds, stability and more than a decent market cap.
Because of this, professionals believe that Stellar has the potential to become prominent in 2020. Therefore, it is vital to say that investing in Stellar can bring positive results in 2020.