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Will Bitcoin be Larger Than NEO in 2018?

Currencies / BlockChain Feb 23, 2018 - 06:35 AM GMT

By: Boris_Dzhingarov

Currencies

NEO is currently the 7th largest cryptocurrency, and it is growing fast. Just one year ago, NEO was only worth roughly 12 cents per coin. However, the currentprice of NEO is roughly $117.  Despite the fact that bitcoin is currently about 22 times larger than NEO by market cap, if NEO keeps growing at its current pace, it could hypothetically catch up to bitcoin. This is especially true if bitcoin experiences a slump, or if NEO increases its growth rate.


The case for NEO’s rise

NEO has many forces working behind it to help fuel its growth. For starters, despite the fact that the Chinese government is extremely strict on cryptocurrencies, it seems to be relatively supportive of NEO. In fact, the Chinese government even consulted with Da Hongfei, one of the founders of NEO for advice before they made their ICO ban in 2017.

Speaking about a possible cooperation between NEO and the Chinese government, Hongfei says, “I do not expect the government to call me in the short-term and say, ‘Lets use NEO as the blockchain technology infrastructure of China.’ But in the medium term? Why not? I think it’s possible.”

This is an incredibly positive statement about a possible future relationships between NEO and the Chinese government from one of the most significant people involved with NEO. This could bode very well for NEO’s future. Also, the fact that NEO was created by Chinese developers most likely makes it significantly more appealing to the Chinese government than other cryptocurrencies.

If strong support for NEO is given by the Chinese government, then the power of the Chinese economy could help NEO to push far higher. China has the second largest economy in the world. So, significant support from the Chinese government could help NEO to be much more heavily used by the Chinese population. This could be very beneficial for the price of NEO.

ICO Platform

Along with Stellar Lumens and ethereum, NEO is also building a strong reputation as a platform on which ICO’s can be launched. In fact, NEO is often referred to as the “Chinese ethereum.” NEO is optimized for smart contracts and DApps, and this gives it a major advantage over bitcoin.

DApps and smart contracts are two of the single most important things that can be created with blockchain technology. So, the blockchains that provide the best support for these things are likely to have more ICO’s launched on them, and have more development done for them in general. The more DApps, smart contracts, and ICO’s that are run on the NEO platform, the more popular that the currency will likely become.

Many ICO’s have already been launched on NEO, and morewill soon be launched. It appears that NEO is becoming something of a magnet for ICO’s. This is not the same for bitcoin. Bitcoin has essentially become “digital gold” and serves as a long-term store of value. However, it is too slow, expensive, and cumbersome to do the things that NEO is doing.

Conclusion

NEO is growing at an incredible rate. This growth is being fueled by its extreme utility value and its positive reputation. The possibility for NEO to win the support of the Chinese government and play a larger role in the Chinese economy also helps. If this does end up happening, then there is no telling how high it could go. It’s ascent past bitcoin could happen far faster than people expect.

However,  bitcoin will not likely relinquish its top spot easily. Bitcoin has the first mover advantage and won large percentages of the cryptocurrency market share before NEO even came into existence. Bitcoin has the best brand recognition on a global value, and has become synonymous with the term “blockchain technology.” Further, there are already bitcoin ATMs in many different countries. This helps to keep bitcoin’s profile very high.

So, although NEO is growing very steadily, and has a large wave of support behind it, it will have quite an uphill battle to fully supplant bitcoin. But, given its rapid ascent, it could possibly take out other competitors, ethereum, Ripple, and bitcoin cash sooner rather than later. Ultimately the market will decide just how high NEO can rise.

By Boris Dzhingarov

© 2018 Copyright Boris Dzhingarov - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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