Nano (NANO) is one of the many cryptocurrencies that investors have to choose from, but it is a coin that stands out from the crowd. Not only is it built on a very solid technical bedrock, but it is also easy to explain why Nano is an excellent investment target without having to delve too deeply into the technical side of things.
Here are some of the best reasons for any cryptocurrency investor to take a good lock at Nano and give it some serious consideration.
1. It’s Simple, Fast and Feeless
The way that we store, send, and spend our money has changed dramatically over the years. It wasn’t long ago that checking our bank account balances would require visiting a bank or ATM. Today, we can simply open a banking app or web browser on our smartphone. From there, we can check our balances and move money between our accounts. Given how convenient managing and spending fiat currencies digitally is, you’d wonder how a cryptocurrency, being entirely digital, would be able to compete.
However, cryptocurrencies are much less simple and straightforward, especially to those who are less tech-savvy. If cryptocurrencies are ever to achieve the widespread adoption that many are hoping for, they will need to extend their appeal to the average person. They also need to be able to match traditional fiat currencies in terms of convenience and ease of use. So far, they have failed.
Nano breaks the mold in this regard, it is perhaps the simplest cryptocurrencies to use. In fact, it is probably the first cryptocurrency that behaves the way most people expect cryptocurrencies to behave.
“Fast and feeless” has become something of an unofficial motto for Nano. The ability to transfer Nano instantly, without having to wait or pay any network fees, is a big selling point. Nano’s simplicity makes it an easy sell. From the perspective of an investor, an attractive asset like Nano stands a good chance of rising in popularity and value. Nano is also much better positioned to penetrate the demographics and markets that cryptocurrencies have struggled to breach in the past.
2. It’s Green
Nano is a very environmentally friendly cryptocurrency, something which has significant implications for its long-term future. To understand why this is significant for an investor, it helps to compare Nano with Bitcoin.
Bitcoin is no longer the only cryptocurrency out there, but it is by far the most prominent. This is largely because Bitcoin was the first cryptocurrency, setting the stage for all those that have come since. Whatever the causes, Bitcoin has now become entrenched in its place at the top of the market, in spite of its issues. Interest in Bitcoin can be seen not only in the amount of Bitcoin being bought and sold but in the number of people engaged in mining.
Mining is not used in Nano, but is an integral part of the Bitcoin network. Mining adds new blocks to the Bitcoin blockchain, paying out Bitcoin to the miner(s) who “solve” each block. The way the Bitcoin network is designed means that a new block is added every 10 minutes. This means that when there are more miners, and therefore more computing power, on the network, the difficulty of mining is increased. More difficult mining requires more computing power.
One study found that maintaining the Bitcoin network requires 2.6GW of power each year. This is equivalent to the power consumption of the entire nation of Ireland. It’s virtually impossible to establish how much of that energy is coming from renewable sources. However, the 2.6GW figure represents a best-case scenario. The actual figure could be as high as 7.7GW. This environmental cost is a problem that Bitcoin cannot continue to ignore and it represents one of the biggest threats to Bitcoin’s long-term future.
Nano offers an entirely different approach. There is no mining with Nano, and the only energy required is the tiny amount used by the processor in your device when you send or receive Nano through the network. Nano’s lightweight and eco-friendly nature is a significant factor in determining its long-term prospects.
This is another key factor in Nano’s long-term potential. As discussed above, should it achieve significant market penetration and reach a very wide audience, a massive network won’t have the same punishing power requirements for Nano as it would other cryptocurrencies. This is one facet of Nano’s scalability, but there are others that are just as important.
For example, just as a dollar can be divided into 100 cents, 1 Nano can be divided into a number of smaller units, called Raw. 1 Nano (formerly xrb) is 10^24 raw. 1 raw is the smallest possible division.
This gives the network a fantastic amount of elasticity. No matter how high the value of Nano becomes, it will still be easy to trade between users, who can send as little as 1 Raw to one another.
Again, this is an important consideration for investors as it speaks to Nano’s long-term viability. Scalability is a measure of its ability to function and operate appropriately should it achieve market dominance.
4. A Promising Time
With any kind of investment, timing is everything. Not only do investors need to time their investments so that their investment target increases in value, but they also aim to time their investments so that they can take advantage of changes in circumstance as they occur.
When any business begins to perform well, their stock value will rise. Investors aim to ride these waves, but doing so requires that they react to events very quickly. The slower they are to react, the lower their potential profits from the rise in value.
Cryptocurrencies, especially Bitcoin, are notorious for their wild price fluctuations, sometimes over the course of a single day. In amongst these short-term spikes and dips in value, it is still possible to discern some overarching trends. In the case of Nano, a recent spate of positive news and technical improvements to the network has helped to push Nano’s value up.
With growing interest and awareness of Nano, and in particular the benefits it offers over other cryptocurrencies, there is the perfect storm of circumstances needed to set Nano’s value on a sustainable upward trajectory. There are no certainties when it comes to investing, but you’d be hard pressed to find another coin in as favorable circumstances as Nano currently is.
5. A Thriving Community
This is an important but often overlooked metric in determining the health and prospects of a cryptocurrency. As previously reported by Mineable, research from a couple of Yale economists showed a correlation between the number of Google searches for Bitcoin and a subsequent spike in value.
Nano’s recent run of positive press coverage hasn’t been driven entirely by technical improvements to the network, although this has certainly helped. Nano has emerged as a widely used medium of exchange in crisis-stricken Venezuela. Not only has this spurred a number of other cryptocurrency developers to turn their attention towards enabling their users to make charitable donations using their coins, but it has also served as a powerful demonstration of Nano’s potential.
The use of Nano amongst individuals in Venezuela shows that it works and has a valid use case. It is also an effective show of Nano’s best features. The fact that Nano can be sent between users instantly and without having to pay any network fees makes it much better suited for paying for goods in these circumstances. Nano transfers instantly between users, with the receiver receiving allof the funds they are sent. With most cryptocurrencies, transactions take time to verify, time that is proportional to the amount that the sender is willing to pay in fees.
Nano has demonstrated its potential in a very convincing way. No other coin has had quite the same level of field testing that Nano has had as a result of the situation in Venezuela. The underlying technology has proven itself and continues to improve with each iteration of the network software. Not only are things going very well for Nano now, but it also has everything that cryptocurrency investors look for in a long-term investment. Whether you already have a cryptocurrency portfolio or not, you should seriously consider making an investment in Nano.
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The post 5 Reasons Why Nano Is a Better Investment Than Bitcoin Right Now appeared first on MINEABLE.com.
Author: Zak Kerr