Read on for the pros and cons of Algorand Blockchain.
In this technological era, there is hardly anyone who hasn’t heard of cryptocurrency. Algorand is one of the top 20 cryptocurrencies in the world that has shown a positive growth rate in the past years at such that the ALGO coin enhances a 24- hour trading volume.
In this article, we will be looking at the pros and cons of Algorand.
|Pros of Algorand
|Cons of Algorand
|Plays a Major role in the creation of CBDCs
|Hits hard on indirect players of cryptocurrency
|Has no first-mover advantage
|Fast scaling time
|Endless competition with other smart contract chains.
|Highly impressive use cases
Pros of Algorand
Algorand Plays A Major Role In The Creation Of CBDCs
The central Bank Digital Currencies (CBDCs) represents a country’s fiat currency digitally. CBDCs have been trending online ever since the Peoples Republic of China launched a digital Yaun in 2021 and other countries followed suit.
If Algorand can go through this successfully, there is a high chance of the countries employing the services of Algorand for the creation of their CBDCs, thereby creating room for investors to consider the adoption rates of the technology and pour more liquidity into their native asset ALGO.
If you are an inexperienced trader or investor, ALGO is the best platform for you as it presents you the opportunity to break into cryptocurrency investments without having to fork out huge sums of money.
And for the experienced trader, you might want to consider buying several ALGOs with the potential of the digital asset in the future in mind. You could be seeing a relatively higher return that could be used as a hedge towards non-performing assets in your portfolio.
ALGO is one of the best cryptocurrencies value and growth investors should consider adding to their respective portfolios based on its affordability.
Fast Scaling Time
It is a well-known fact in the crypto world that Ethereum has a first-mover advantage based on smart contracts and it has continued to dominate decentralized finance (DeFi). However good Ethereum and other blockchain networks are, they cannot scale transactions faster than Algorand.
Algorand reaching such a milestone could cause more developers to make use of its blockchain. On the long run, the greatest beneficiary is going to be its native asset ALGO thereby permitting more liquidity to be poured into the asset on the platform. Hence, ALGO could trade above its all-time high price of $3.28.
Highly Impressive Use Cases
Algorand has use cases in terms of infrastructure, supply chain, identity, securities, financial institutions, gaming, DeFi, insurance, stablecoins, daily assets, environmental, and government/public sector.
Several of the use cases of Algorand such as the decentralized finance solutions for artists called Opulous, crypto-asset broker, Voyager, payment solution network, Bleumi, and blockchain data and analysis platform Chainalysis.
Over 4 million non-fungible tokens (NFTs) have been created that can represent the rights of more than 95,000 SIAE members. In other words, all the works of the artists that SIAE has represented for over 139 years would be immortalized because of the innovation of NFTs.
Since there are no other native tokens aside from ALGO on Algorand. NFTs are not mainly made to be displayed but can also be monetized to bring passive income. You might also want to consider selling them outright for huge sums of money. Since ALGO powers Algorand, the cryptocurrency can partake in numerous transactions and can go a long way in positively impacting its price and market valuation in the long term.
Cons of Algorand
Hits Hard On Indirect Players Of Cryptocurrency
Regulatory bodies are searching for new ways to prevent the use of cryptocurrencies. They are not issuing direct statements on whether they are bad or are used in illegal activities. They are gradually preying on the institutions that facilitate such transactions.
Once all these institutions experience the heat from such strong regulatory bodies worldwide, it will be quite amusing to see how the digital assets are going to respond in terms of price.
Unfortunately, ALGO’s price of $2.01 is 38.72% less than its all-time high price of $3.28 that was recorded on Friday, 21st June 2019. With such a unique innovation that has seen hundreds of mainstream corporations adopt Algorand as their primary software solution for scaling their transactions, such actions should reflect positively in the price of ALGO.
Others are :
- Endless competition with other smart contract chains.
- Algorand has no first-mover advantage.
The Bottom Line: Is It Worth Investing In Algorand?
To wrap up the pros and cons of Algorand. ALGO is a low-risk investment with lots of potential gains. It will be tremendous if you use this crucial analysis as an accessory to the independent research you have or will be conducting. This will help you make a great decision on ALGO and know if it is worth investing in.