Is Tezos A Good Investment For 2023?
Is Tezos A Good Investment For 2023?
Unless you have been living under a rock in a desert on a remote island, you will know that crypto hasn't been doing so well lately.
Crypto is dead they say, it's over, finished, a con...
Rubbish.
Crypto is faaaaar from over - it's just getting started.
This is just part of the normal economic cycle that all markets go through (see image below) - they boom and reach new highs with everybody in disbelief and euphoria of how well it's going, and then it all comes crashing down...
A lot of people who bought in at the top because of FOMO lose money and the market stagnates for a while since people loose faith in the asset, until it reaches a point where the experienced investors see a good price and start to buy back in.
"When everyone is being greedy, be fearful - when everyone is being fearful, be greedy", Warren Buffet.
The market eventually starts to build and the cycle repeats again, and again.
It happens with every asset class and it happens over and over again - but for some reason people seem to forget this, and every time they repeat the same mistakes.
On the way up, they think it will go up forever, and on the way down they think it will never stop, it's over - but that isn't the case. At least looking at all the crashes that have come before.
It was the dot com crash, then the housing crash, now it's the aftermath of COVID combined with the war and cost of living crisis, the thing is - you can never predict what is going to cause it, otherwise we would never have a crash!
Crypto will come back, just like the internet and property market did, but don't wait before it shoots up to invest and be the person that gets caught out, start buying in now ready to capture those early gains - you just need to decide what coin to invest in.
For me, I am bullish on Tezos - I already have a fair chunk invested in it and have been pretty successful with it so far.
I have full confidence that it will return to beat it's previous high because there is so much potential for the technology that it is built on.
What is Tezos and how does it work
At the time of writing, there is a total of 945,669,429XTX in circulation priced at $1.1, down from its high of around $9.2, but it is currently having a little bull run up 65% since the start of the year!
The network utilizes a unique form of governance that allows for the on-chain evolution of its protocol, enabling the community to vote on proposed upgrades and changes to the network. The native cryptocurrency of the Tezos network is called XTZ.
Unlike other blockchain networks, Tezos utilizes a self-amending protocol, which allows the network to evolve and improve over time.
This is achieved through a process called "formal verification," which enables developers to mathematically prove the correctness of the code that runs on the network. This helps to ensure the security and stability of the network and its smart contracts.
In addition to its unique governance model and self-amending protocol, Tezos also utilizes a unique consensus algorithm called "Proof-of-Stake" (PoS).
Instead of relying on powerful computers to validate transactions and secure the network, as is the case with "Proof-of-Work" (PoW) algorithms like Bitcoin, Tezos uses a system of "validators" who hold and stake their XTZ to validate transactions.
This not only makes the network more energy-efficient but also allows for a more decentralized system.
So in summary, Tezos is a blockchain network that is designed to be more flexible and adaptable than other networks, and its unique features make it a strong investment opportunity in the cryptocurrency market. With its emphasis on security, stability, and decentralization, Tezos has the potential to change the way we think about blockchain technology and its real-world applications.
Why Tezos' self-amending protocol is a game changer
Tezos' self-amending protocol is a game changer because it allows the network to evolve and improve over time without the need for hard forks.
A hard fork is a change to the network protocol that requires all users and nodes to upgrade their software in order to continue participating in the network. This can lead to a split in the network and can create confusion and uncertainty for users and developers.
The self-amending protocol of Tezos allows for a more seamless and efficient process of upgrading the network. Instead of a hard fork, the network can upgrade through a process called "formal verification."
This process allows developers to mathematically prove the correctness of the code that runs on the network, which helps to ensure the security and stability of the network and its smart contracts.
The ability to upgrade the network in a more efficient and seamless manner is a game changer because it allows Tezos to adapt and evolve as the needs of the network and its users change. It enables the network to stay ahead of the curve and stay relevant in a rapidly changing technology landscape.
In addition, Tezos' self-amending protocol also allows for a more decentralized form of governance.
It enables all stakeholders to vote on proposed upgrades and changes to the network, which helps to ensure that the network is being developed in the best interests of the community.
This is a stark contrast to other blockchain networks where the development is mostly controlled by a small group of individuals or organizations.
Tezos' partnerships and real-world use cases
Tezos' partnerships and real-world use cases are a testament to the potential of the network to revolutionize various industries.
The network has formed partnerships with a number of organizations and companies across different sectors, including finance, gaming, and real estate.
One of the most significant partnerships for Tezos is with the financial services company, Inria. Inria is utilizing Tezos' unique features to develop a platform for securitization, which is the process of turning assets into securities that can be traded on financial markets.
This partnership is significant because it demonstrates Tezos' potential to disrupt traditional financial markets and bring new opportunities for investment.
Tezos has also formed a partnership with the gaming company, Ubisoft, to explore the use of blockchain technology in gaming. Ubisoft is exploring the use of Tezos' smart contract capabilities to create in-game items that can be traded and exchanged on the blockchain.
This partnership highlights the potential of Tezos to revolutionize the gaming industry and create new revenue streams for game developers.
I used to be quite the gamer, and my son still is - so I can see huge potential in this. If you have kids or game your self, you will know that everyone always wants the latest skin or other DLC. What Tezos is bringing to the table here is going to create a huge online market place for trading of in-game items.
You might, for example, find a skin or weapon etc. In a game that is totally unique because these items can be generated through the blockchain. This would then command a high value and could be traded with or sold to other players, creating an online marketplace within every game!
Another exciting partnership for Tezos is with the real estate company, Elevated Returns, to tokenize real estate assets on the Tezos blockchain. This partnership demonstrates the potential of Tezos to revolutionize the way real estate is bought, sold, and traded.
In addition to these partnerships, Tezos has a number of real-world use cases that are currently being developed and tested. These include supply chain management, digital identity, and decentralized finance (DeFi) applications.
How to start investing in Tezos
Investing in Tezos (XTZ) is a relatively straightforward process, and there are a number of platforms and exchanges that allow you to buy and sell the cryptocurrency. Here are a few examples of popular platforms that I have used personally where you can invest in Tezos:
- Binance: Binance is one of the most popular cryptocurrency exchanges in the world, and it offers a wide range of trading pairs, including XTZ/BTC and XTZ/USDT. It offers a customisable interface, high liquidity, leverage options and fast transaction speeds. It does have cheaper spread fees than the others, but probably not the easiest user interface to figure out when starting off.
- Coinbase: Coinbase is a popular exchange for buying and selling cryptocurrencies, and it offers Tezos trading pairs in some countries. The platform is known for its ease of use, security, and insurance for the customer's fund. It does offer various tasks and challenges for you to do to earn some crypto which could be useful to start with.
- Etoro: Whilst not a dedicated crypto exchange, Etoro has a very user friendly interface and simple 1-click simple trading system, perfect for beginners. I started trading on Etoro initially before moving to Binance - the spread fees are cheaper on Binance (although Etoro have reduced them now to what they were) but I would say Etoro would be more suited to a beginner.
When investing in Tezos, it's important to keep in mind that the value of any cryptocurrency can be highly volatile and subject to rapid fluctuations. Before investing, it's recommended that you research the cryptocurrency and the exchange or platform you plan to use, and make sure you understand the risks involved.
It's also important to note that for some platforms and exchanges, you will need to go through a verification process before you can start trading. This may include providing personal information, such as a government-issued ID, and linking a bank account or credit card to your account.
A good tip would be to set yourself up a trading strategy with clear goals and pre-defined processes that tell you when you need to open and close trades. Sticking to a strategy like this can take the emotion out of trading which is the main reason people get caught in bad trades.
***Please note, this information should not be taken as financial advice. This is based solely on my opinion and my experiences provided to you for entertainment purposes. Always do your own research and due diligence before investing and consult a financial advisor where necessary.
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