It’s High Time Cryptocurrency Investors Start Thinking Long Term
Cryptocurrency traders and investors often experience two types of heartbreaking feelings at different periods in their trading journeys. The first heartbreaking feeling comes from ignoring a cryptocurrency in its pre-ICO or ICO days when it was selling quite cheap. You might end up angry with yourself when the cryptocurrency eventually takes off and you missed the boat. The second heartbreaking feeling comes when you join the crowd to exit your position in a coin during a selloff, only for the coin to rally back to previous highs a couple of days or weeks later.
Earlier this year, cryptocurrencies suffered a massive selloff in response to a tightening regulatory environment. China, South Korea, and the U.S. (among others) have been cracking down on ICOs and cryptocurrency exchanges. The selloff was so bad that Bitcoin crashed more than 70% and more than $550 billion was wiped off the total market cap of the general cryptocurrency market.
In the last week, the cryptocurrency industry has started showing signs of a steady recovery. Bitcoin has moved up to trading close to $11,000 and Ethereum is almost back to $1000. However, as the cryptocurrency industry returns to bullish ways, some coins will fare better than others at a consistent pace over the long term. This piece examines three reasons people trading the NEO coin can expect to see a consistent recovery in the short to medium terms.
NEO is a credible contender to Ethereum
The first reason NEO is poised to be a winner in the long-term cryptocurrency play is that it is a credible competitor to Ethereum. Ethereum has perhaps better prospects of long-term survival and mass market appeal than Bitcoin because there’s more to Ethereum than its cryptocurrency. Ethereum is a platform for creating smart contracts and building decentralized apps. Other companies that want to build their own blockchain products leverage the Ethereum blockchain and they create their ICOs on Ethereum’s platform.
NEO is fundamentally like Ethereum in that it people can use it to create smart contracts and businesses can build their decentralized apps (DApps) on its platform. NEO’s edge over Ethereum stems from the fact that NEO has a barrier to entry for companies that intend to launch an ICO on its platform. While Ethereum’s open-door policy makes it a breeding ground for potential “shitcoins”, very few scammers will go the long route of launching a fraudulent ICO on NEO.
Better relationship with Chinese regulatory systems
Two of the most recent market crashes that the cryptocurrency industry suffered had their origins in China. When cryptocurrency sneezes in China, the rest of the market catches a cold. NEO has decent odds of long-term survival because it has its origins in China and it is the poster boy for Chinese authorities clamoring for a regulation of cryptocurrencies.
In an interview earlier this year, Da Hongfei, founder of NEO revealed his pro-regulation stance despite the general anti-regulation sentiment among cryptocurrency enthusiasts. He noted that the “market has been very hot, very crazy for past year… I think it’s time for regulators to step in”. The fact that NEO is technically at peace with regulators eliminates much of the regulatory risks facing cryptocurrencies.
Enterprise-friendly programing language
A blockchain project is only as good as the developers it can attract because the developers building apps, Wallets, and other services on the blockchain often form the nucleus of its community. NEO is designed to attract developers by allowing them to use popular programming languages such as Java and C# to write their apps. In contrast, developers must first learn Solidity before they can create or build apps for Ethereum.
Businesses that intend to embrace blockchain technology will also find it easier to ride on NEO’s network because they can easily code smart contracts in the existing programming languages. In the words of Brian Evans, angel trader, adviser, and blockchain evangelist, “the big move for NEO is creating an entire smart economy. It has incorporated digital assets, smart contracts, and a digital identity that can be used for real-world applications and become integrated into the real economy.”
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