The Solana cryptocurrency isn’t on many folks’ radar. But the outfit behind it is quietly revolutionizing how cryptos could change hands. And that’s gotten the attention of some crypto connoisseurs with an eye on the future… Even if Bitcoin is the one getting the headlines.
While it may be a little premature to call 2021 the year of the crypto, prognosticators could certainly do worse. But even amidst record highs, the Bitcoin dream was recently described as dead. And major media outlets have reported on cryptocurrencies being snuffed out hundreds of times.
That’s just the way the way it goes though. No matter when an obituary is written, eventually it’ll become true. Even the rumors of Mark Twain’s death were just a decade or so off. But in the world of finance, the reports of doom and gloom tend to garner the most headlines.
Take the stock market’s recent bull run for instance. It was still in its infancy when the doomsayers started warning of a major fallout. And guess what? A mere 10 years later they were right. The bull succumbed. And the bear ever so briefly rose to prominence.
When investments are performing well, it’s so often chalked up to “irrational exuberance.” And when they drop in value, you can bet your bottom Bitcoin there will be an economic soothsayer shouting they told you so.
The simple fact is markets go up and markets go down. And cryptocurrencies are proving to operate in a similar fashion. Which is why they can make for a promising long-term investment. Especially a disrupting one with big plans for the future… like the Solana cryptocurrency.
The Solana Cryptocurrency’s Potential Is Huge
The blockchain behind Solana cryptocurrency wants to revolutionize the crypto market. And by some accounts, it’s poised to do just that. But is it a good investment? That depends on your risk tolerance and timeline.
Investors with a taste for speculation should be licking their chops. And the reason is simple: volume.
We’re seeing an unprecedented level of volume in the cryptocurrency markets. More people and money are flooding into major exchanges than ever. Demand is high. Calling it a frenzy isn’t hyperbolic when a single exchange has more than $9 billion in volume in a single day.
And unlike the crazy crypto run of 2017, this time institutional investors are getting in on the action. All of this is causing issues. The big problems are:
The records (AKA “blocks”) in the blockchain of most cryptos are limited in size and frequency. That means transactions just aren’t capable of happening as fast as they need to… At least if they plan to compete with other traditional currencies.
- High Transaction Costs
These were introduced to deter bad actors from overloading the network. But since they were introduced, they’ve scaled alongside crypto’s surge in value. This means when most cryptocurrencies are transferred to a different wallet, a noticeable fee is paid. It’s like an ATM charge that that takes place during every transaction. And they can add up quickly.
- Confirmation Delays
These are pretty self-explanatory. It just boils down to folks not wanting to wait so long for deposits to be processed.
The Solana cryptocurrency could be a solution to all of the above… It’s already proving up to the challenges it set out to fix. Now it simply boils down to adoption.
Speculators Be Damned
Right now, Solana cryptocurrency is cheap. Which makes sense for a new crypto on the block. But if its censorship-resistant blockchain lives up to the hype and provides the infrastructure needed for global adoption, it won’t be for long. That’s why this is an ideal investment for speculators with some time on their side.
Adoption isn’t going to happen overnight. But thanks to proof of being able to process 50,000 transactions per second at $0.00001 a pop, adoption feels like an eventuality at this point. That’s about 10,000 times the transaction speed of Ethereum and a whole lot cheaper.
But it’s far from a sure thing that the Solana blockchain becomes the norm. So those more risk averse should tread lightly… While keeping a close eye on this story as it unfolds. If the Solana blockchain becomes the new standard, investors will want to get in as close to the beginning of the Solana cryptocurrency as they can. But even if the odds look good now, they’re far from written in stone.
Remember, Betamax was arguably better than VHS. And before both of them was Cartivision. Only one caught on though. Binary platform wars are rarely predictable. But if the crypto gods know what’s good for them, Solana will become a household name sooner rather than later. And Solana cryptocurrency won’t be this cheap ever again.
The Bottom Line on Solana Cryptocurrency
Investors with some speculative capital burning a hole in their pocket should definitely take a closer look of their own. Solana is introducing some promising technology right now. But its adoption is far from certain. So, like any investment, keep in mind the risks. And don’t let potential rewards cloud your judgement.