Formerly known as Raiblocks, Nano is a general-purpose cryptocurrency that competes directly with coins such as Bitcoin and Litecoin. Many newer cryptocurrencies are for specific purposes to help them stand out. For example, a coin might be explicitly used for cloud computing, video gaming, or gambling. Nano has always avoided having a niche and ambitiously competes with Bitcoin and with dollars as a general-purpose monetary system. Nano, therefore, has the power to grow much larger than a specific purpose coin but also risks fading into irrelevance. Nano, or XRB, must demonstrate its advantages over much more significant and better-known Bitcoin to survive and grow in value.
How does Nano hope to compete with Bitcoin?
The developers of Nano created their cryptocurrency as a way of overcoming the limitations of Bitcoin technology. The technology behind Bitcoin is not fixed and can be improved if the majority of its largest miners agree to the changes. However, changes to Bitcoin occur slowly and cautiously. This cautiousness gives newer cryptocurrencies a chance to move ahead of Bitcoin, though Bitcoin easily remains the most valuable coin at this time.
What are the advantages of XRB technology?
Unlike Bitcoin, Nano does not use a mining system. The lack of mining is intended to make Nano faster, more environmentally friendly, and cheaper than Bitcoin. Nano uses a block-lattice rather than a blockchain to validate transactions. In other words, everyone has their own blockchain, instead of their being a single blockchain for all users. This dramatically reduces hardware requirements relative to the Bitcoin network.
In Bitcoin, proof of work is used to validate transactions. This means that someone who has twice as much processing power has twice as much power to decide the future of the currency. Instead of giving power to those who have the most processing power, Nano offers control to those who possess the most coins. Large coin holders can decide the validity of transactions. This can work just as well to discourage malicious behavior as allowing those with the most processing power to control the network. If those who hold massive amounts of XRB were to behave maliciously, they would destroy the reputation and the value of the coin. Therefore, it is in their best interests to protect the status of the currency, or else millions of dollars worth of their coins would quickly become worthless. Nano also does not waste electricity and damage the environment the way Bitcoin does. Nano does not involve miners using enormous amounts of electricity to solve algorithms and produce new coins.
Nano also aims to be much faster and cheaper than Bitcoin. Only a limited number of Bitcoin trades can occur each second, which leads to slow transactions and fees. The slow transaction speed makes it difficult to find many practical uses for Bitcoin. The payment processing company Stripe, for example, formerly allowed Bitcoin to be used for payments and quickly converted into national currencies. However, Stripe no longer deals with Bitcoin due to the transactions becoming too slow and too expensive. Nano and other smaller cryptocurrencies, therefore, do have a chance of overtaking Bitcoin in the future. If cryptocurrencies become a commonly used method of payment, Nano could skyrocket in value if it is seen as the best faster alternative to Bitcoin.
Where is Nano traded, and is it a worthy short term investment?
The Binance cryptocurrency exchange handles many Nano trades. Nano is traded primarily for Bitcoin and for USDT. To a much lesser extent, Binance coin and Ether are traded for XRB. There are no exchanges that primarily trade XRB Binance deals with hundreds of coins with XRB being only one of them. Another exchange that trades a great deal of Nano is Coinex, which sometimes pulls ahead of Binance as the most common place to purchase or sell Nano.
Nano is no longer a new and rapidly growing cryptocurrency that one could get rich quickly by buying. In early 2018 the price did massively increase, from almost nothing to more than $30 per coin. Since then, the cost of Nano has decreased to about $0.75 per coin. One might assume that the price of Nano has long passed its peak and that it will never be a good investment again. However, one could still make money from smaller increases in the coin’s price.
Investing in Nano today is a good idea only if one believes in the long-run potential of the coin’s technology. If cryptocurrency becomes a common way of making online purchases in the future, Bitcoin may not be the best choice. One might believe that there are no better fast, general-purpose cryptocurrencies than Nano. If so, they might see Nano as an excellent long term investment as companies will accept it as payment in the future. However, one cannot invest in Nano as a coin that is rapidly increasing in value due to hype. Only everyday practical use will allow Nano to recover its former price.
Will Nano increase in value in the rest of 2019 and 2020?
It all depends on whether or not the coin sees more practical use during the next year. The cryptocurrency is simple to use, which may give it a chance as a mainstream form of payment. Nano is also now accepted as a form of payment for the video streaming service Twitch. The limited acceptance of the currency as a form of payment is not enough, however. If Amazon.com were to begin accepting cryptocurrency as a form of payment, one would expect a huge increase in the prices of many coins.
However, there is no guarantee that Nano would become the favored coin of the company even if they were to start accepting cryptocurrency. Many other coins offer faster and cheaper transactions than Bitcoin does, and so Nano is probably not a uniquely capable technology. There is also no guarantee that cryptocurrencies will become mainstream at all. At the current point in time, they exist mostly for speculative investing. Cryptocurrency offers all sorts of advantages over fiat currency. However, these advantages may not be enough for cryptocurrency to become a serious alternative to dollars at any point. One should buy Nano only if one is sure that digital currency is becoming mainstream and that Nano is a superior technology.