Algorand price in the coming years
Are you looking for an Algorand price prediction, or are you just curious about how it works? Nowadays, many people want to invest in cryptocurrencies after seeing the advances in blockchain technology and the upgrades built on existing cryptos while others added new ones. Yet, Algorand is an example that simple improvements can have a huge impact.
It puts a spin on the conventional staking model offered by numerous cryptos. Specifically, it changed how its nodes performed on the network. In turn, the Algorand blockchain offers speed and security that rivals other cryptocurrencies. Does this mean you should add it to your portfolio, or should you look at other options?
We’ll start with a brief rundown of cryptos and blockchains just to get every reader up to speed. Then, we’ll talk about the Algorand platform and its native cryptocurrency, the ALGO token. Afterward, we will proceed with the pros and cons of Algorand. More importantly, we’ll see how the Algorand price will turn out in the long run.
How do cryptocurrencies and blockchain work?
Bitcoin (BTC) launched in 2009, intending to replace the old financial system, and this relied on governments and companies and took control away from people.
Worse, people often had to deal with high transaction fees. Bitcoin uses blockchain networks made up of volunteer computers called nodes to fix this.
They confirmed BTC confirmations to earn more bitcoin. This activity is called mining, and with the right tools, you can mine cryptos too. Overall, this system is called a proof-of-work blockchain protocol.
Bitcoin is open-source, allowing anyone to make crypto networks themselves. After bitcoin, more cryptos improved upon the proof-of-work (PoW) model.
Miners can earn more bitcoin if they use powerful computers, adding upgrades that increase energy consumption. Also, this keeps away those who can’t afford good PCs.
Eventually, cryptos that used the proof-of-stake (PoS) model came out. It fixes these issues with its staking feature, and people leave their tokens to earn more in the long run.
People didn’t need expensive mining rigs to use this feature, and this meant more folks could join the network while keeping the energy usage down.
Now, cryptos are more than just an upgrade for fiat currency, and it has other features like smart contracts and non-fungible tokens (NFTs).
Read More: How Can I Mine Cryptocurrencies?
What is Algorand (ALGO)?
The cryptocurrency space is about constant improvement, so proof-of-stake blockchains also received upgrades. After all, even these had issues.
Crypto networks are secure because they keep running even if a few nodes break. But what if it’s more than half? Worse, what if one person takes over that many nodes?
This is called a Sybil attack, and a person could use it to harm a crypto network. This is why we see cryptos find ways to prevent this from happening.
In 2019, MIT professor Silvio Micali came up with a solution. He called it the pure proof-of-stake (PPoS) model. Surprisingly, it’s not as complicated as you may think.
It chooses the nodes that will confirm transactions at random. They could improve their chances of being chosen by staking more Algorand tokens, but this doesn’t mean you’ll always be picked.
This makes it hard to pull off a Sybil attack, and it’s hard to take over more than half the nodes since they’re scattered across the globe. Even if a person had many, this doesn’t mean the network will choose those.
You may find the Algorand platform used in various projects, which is one reason why it’s been climbing higher on the cryptocurrency list.
At the time of writing, the ALGO price is $2.01, putting Algorand in 21st place on the list. The market cap was $12,538,146,745.47, and the circulating supply was 6,242,258,797 ALGO.
The upsides of Algorand
Other cryptos have been using the proof-of-stake model long before Algorand came out. However, many of them were expensive, especially Etheruem (ETH).
You need 32 Ethers to stake tokens by yourself. At the time of writing, one is worth $4,805.89. This means you’ll have to spend around $153,788.48!
This is why people needed more affordable choices. This is where Algorand comes in handy, and you only need 1 ALGO to start staking.
This is super cheap since the Algorand price is two dollars more or less. What’s more, its transaction speed is about 5 seconds.
This beats more well-known cryptos like bitcoin and litecoin (LTC). BTC takes 9 minutes, and LTC needs 2.5 minutes. Does this mean you should invest right now?
The downsides of Algorand
Investments have flaws, whether it’s a conventional or digital asset. The biggest one that Algorand has is its competition, and many people still prefer older cryptos like Ethereum.
It’s been around since 2015, so it had time to get more investors. Also, it’s much easier to start with those because you can find more resources to learn about them.
Meanwhile, Algorand’s proof-of-stake model is relatively new, meaning not many people know how to use it. This means first-time users will have to face a steep learning curve.
What’s more, other cryptos offer more features that you won’t find in Algorand. Perhaps it may get better in the future, so you may want to hold it as a long-term investment.
If you want quicker profits, you might want to purchase other cryptos. You can find better choices since the crypto market has hundreds of coins!
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Final thoughts
This article informs about Algorand’s price and its other features. However, it’s up to you whether you’ll invest in ALGO tokens or not. Have an investment plan before you buy your first coins.
What’s more, learn more about the assets. You can find so many free resources to help you pick the right ones. Also, they could provide real-time data such as exchange rates.
Start by reading the other crypto articles on Inquirer USA. They can introduce you to those other cryptos so that you can follow up with deeper research.
