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If you Missed the Boat on Bitcoin, Pay Special Attention to Stellar

Bitcoin

Cryptocurrencies are here to stay irrespective of the amount of vilification, skepticism, and outright persecution from traditional Wall Street. 2017 was the year that cryptocurrencies shot to the limelight as speculative investments that could deliver incredibly exponential gains. Unfortunately, 2018 is shaping up to be a highly volatile year for Bitcoin as bears and bull remain locked in a battle for the soul of the cryptocurrency.

Bitcoin is down almost 40% as it trades around $8,946, see chart below

Bitcoin year-to-date

Interestingly, Bitcoin had booked 32.50% gains in the same period in 2017 as seen in the chart below.

Bitcoin performance

Stellar is an interesting cryptocurrency, it doesn’t have as much market buzz and hype as Bitcoin or Ethereum. However, it has the potential to become one of the first cryptocurrencies to move from the support of early-adopters to creating mass-market adoption. Stellar offers a blockchain solution for moving money across borders at practically zero cost.

One of Stellar’s unique value proposition is its facilitation of the near-instant transfer of value by allowing traditional financial institutions to create tokens that can be used in place of fiat currencies.

However, beyond the fact that Stella facilitates efficient and fast cross-border transactions, Stellar is shaping up to be a reliable ally for companies that want to launch an ICO or token sale in the blockchain industry. Below are four reasons Stellar can become the next big thing for people interested in blockchain technology.

Impressive Security

The Stellar platform is designed to make it hard for people to build exploitable code. The Ethereum blockchain requires people to create smart contracts using the Solidity language, which is a Turing-complete programming language. Stellar however allows people to create smart contracts using popular programming languages such as C# and Java. Interestingly, the simplicity of Stellar’s programming language enhances the inherent security available to Stellar smart contracts.

Dynamic liquidity

The second reason to be optimistic about the prospects of Stellar is the liquidity that it brings to the cryptocurrency and blockchain industry. The cryptocurrency market has been growing exponentially in the last couple of years; yet, liquidity is mostly restricted to a few high-profile coins. There are more than 1,400 altcoins in the market and thousands more are still in the ICO pipeline. Unfortunately, current cryptocurrency exchanges lack the capacity to list all the ICO’s in the market.

Stellar is trying to solve the liquidity problem for cryptocurrency exchanges by offering a distributed exchange on which coins can be listed as soon as they are issued. The increased liquidity, in turn, will break down the walls of exclusivity around cryptocurrencies and encourage the mass-market adoption of blockchain technology going forward.

Pacesetting transactional speed

Another reason you should consider making a play for Stellar if you are interested in blockchain technology is the quality of its performance. For instance, the median transaction time on Stellar takes about 5 seconds from initiation to settlement. In contrast, it takes about 3.5 minutes for orders to be executed on Ethereum, and Bitcoin transactions can take hours (sometimes days) to be settled.

In addition to the transaction speed, Stellar offers impressively cheap transaction costs in relation to other blockchains such as Ethereum and Bitcoin. For one Stellar transactions cost a base fee (100 stroops) and they require that you keep a base reserve (0.5 XLM). Nonetheless, you can expect to pay around $0.01 for every 100 transactions on Stellar.

Simplicity of use

One of the reasons Stellar is poised to make it to the mainstream market is that it is very easy to use relative to other cryptocurrencies. For one, businesses will find it much easier to create and launch an ICO within hours or within two days at most. The fact that you can create Stellar smart contracts using Java, C# or other programming languages also eliminate the need to hire Solidity developers as opposed to creating contracts on Ethereum.

 

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.

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