Bitcoin continues to prove itself as one of the safest and best bets of 2020 for cryptocurrency to look out for since its conception in 2009. The cryptocurrency powerhouse has exceeded other assets hitherto this year and is constantly flocked by investors looking for higher returns amidst the pandemic-induced crisis. The Bitcoin price, however, rounded only to 30 % this year after plunging in a sell-off in March, has caused an ebb of possible investors who are continuously orbiting the markets for larger yields and efficient transactions.
One cryptocurrency has been gaining ground lately albeit subtly, whose coin price has steadily doubled since January- with experts anticipating for this minor cryptocurrency to ascend further as a contender for powerhouses in the market. Tezos, known XTZ in trading, at the beginning of 2020, has soared to a staggering 85%, adding cumulative gains made last year, giving the cryptocurrency a market capitalization well-nigh on $1.8 billion.
CoinMarketCap data has revealed, at the beginning of the year, that Tezos placed 15th on the list for most valuable cryptocurrency on the basis of its colossal market capitalization. However, he has now surged through into the top ten — and is expected to outperform its rivals if its progressive run continues.
Founder of market analysis firm Quantum Economics, Mati Greenspan comments on Tezos being one present-days most popular platforms for projects to deck on seeing that its tokenomics, adhering to its token distribution system, is structured in such a way that allows for incoming supplies to be diverted into staking and then cleared out.
Tezos has emerged mightily as a preferred blockchain and cryptocurrency for security tokens and strongly encrypted real estates. Their proclaimed style of being ‘self-amending cryptographic ledger” and use of the consensus algorithm, Proof-of-Stake (Pos), has amassed it a huge following, with possible investors lining up.
The steady rise of Tezoz currency, in contrast to Bitcoin’s plummeting coin value, has sparked a debate amongst the cryptocurrency community, of whether or not, users—known as miners— might be switching up their computing power in favor of other cryptocurrencies. This grants Tezos a boost thus cementing further their streak in the market.
Tezos, which makes use of the proof-of-stake algorithm compared to Bitcoin’s proof of work, cannot be mined easily. Since proof-of-stake blockchains are extensible and less concerted, miners are saved from complexities such as employing mathematical equations in order to build the next fair block. Tezos are also keen on incentivizing token holder participants present in the network security.
If funds are stockpiled in particular wallets, Tezos holders are able to “stake” their XTZ and are rewarded additional tokens for building and authenticating new blocks in the chain. If holders are dishonest, however, Tezos, fully employing the PoS consensus algorithm, is able to withdraw collaterals, restricting these users of the ability to engage in future circuits of the PoS.
This cryptocurrency has significantly benefited from numerous platforms reinforcing the “stake” employed in trading Tezos tokens which, according to DiPasquale, is a “positive drive for price.” The rally wherefore began in November of last year, has garnered them patronage from major partnerships in the financial sector and the Tezos Foundation Faucet, that accords users ever 12 hours of XTZ rates up to 0.01.
The future looks bright for Tezos.