Table of content

Bitcoin Investment : What is the Next Bitcoin-like Investment?

Have you checked the Bitcoin price lately? Many did recently, as bitcoin investment is growing as a tendency amongst people.

Bitcoin price has ultimately shattered the US$20,000-resistance and is on the cusp of seeing an explosive rally. Bitcoin transactions price against the US Dollar (BTC/USD) has ultimately broken above the US$20K resistance after unsuccessfully trying two more times in the last one month (first on November 30, 2020, at US$19,850.11 and second on December 1, 2020, at US$19,920.53).

The rally has gained momentum especially after the reward halving of bitcoin mining in July 2020. Mining bitcoin has become costlier now and therefore space has been overtaken by the mining corporations and pools. You should gain access to earn more. Bitcoin is a public ledger crypto, initiated by its creator Satoshi Nakamoto, that allows faster, cost effective, and third party free cross-border transactions. Bitcoin seeks to revolutionize the system by putting forward a system that is not dependent upon centralized banking.  

As I write this article, the Bitcoin price is hovering around US$20,691.41 with a yearly return of around 190%. This means that if you had invested US$10,000 in Bitcoin at the beginning of 2020, your year-to-date return would have been around US$1,900,000. Financial news and market news including tweets by Tesla CEO Elon Musk can affect the Bitcoin and crypto prices significantly. Recently, El Salvador became the first country to approve Bitcoin as the legal tender beside the US Dollar. In fact, many companies (including Wikipedia, KFC, Burger King, Overstock, Subway, and more) have started accepting bitcoin as payment option.

Do you think the momentum is over? No, not yet. It’s only warming up as institutional investors (including insurance companies and pension funds) and high net-worth investors (HNIs) are gearing up to bet heavily on Bitcoin investment. While some analysts say that US$25,000 is the next logical target, Nexo co-founder Antoni Trenchev has said that the BTC price will be US$50,000 by the end of 2021. An economic model of a respected on-chain analyst has waldo predicted the price to jump to the US$200,000-300,000 region in the coming 12-months. So, there’s more to come for Bitcoin investment in the new year.

But is there any other prospective digital currency that can become the next Bitcoin-like investment? Yes, there are many cryptos and altcoins that can be the next big thing in the cryptocurrency market. There is particularly one cryptocurrency that is making all the right noises. It is the Chainlink (LINK), which has learned from the history of bitcoin and is plugging the loopholes to solve one of the greatest problems of blockchains. This real-life use value has provided Chainlink the potential to become the next Bitcoin-like investment.

next bitcoin investment

ChainLink

ChainLink (LINK) has seen explosive growth in 2020. Its year-to-date (YTD) growth this year is 668% and is currently trading at US$13.49. As per CoinMarketCap, it is the 5th biggest crypto currently with a US$13.44-billion market capitalization. The main reason behind this phenomenal performance is that it wants to use its unique protocols to advance the entire sector.

Many cryptocurrency analysts and experts believe that the Chainlink price against the US Dollar (LINK/USD pair) will reach at least US$200-300 in the current cycle. Some also believe that the LINK price will possibly hit US$1,000 in the near future.

ChainLink (LINK) has seen explosive growth in 2020. Its year-to-date (YTD) growth this year is 668% and is currently trading at US$13.49. As per CoinMarketCap, it is the 5th biggest crypto currently with a US$13.44-billion market capitalization. The main reason behind this phenomenal performance is that it wants to use its unique protocols to advance the entire sector.

Many cryptocurrency analysts and experts believe that the Chainlink price against the US Dollar (LINK/USD pair) will reach at least US$200-300 in the current cycle. Some also believe that the LINK price will possibly hit US$1,000 in the near future.

What’s the Secret of Chainlink’s Successas the new 'Bitcoin Investment'?

The main reason behind Chainlink’s faster adoption by the investors is the fact that it tries to rectify one of the biggest problems of blockchain technology: how to communicate information to and from the blockchain?

ChainLink is a decentralized oracle system that solves the problem of communicating information to and from the blockchain. It, therefore, bridges the gap between the blockchain world and the outside world.

Let’s first try to understand what the problem is and how Chainlink is attempting to solve it.

What’s the Problem with the Traditional System?

Traditionally, it is the sensors (called oracles) that transfer information (personal information or otherwise) to and from the blockchain. Almost anything can be monitored by the oracles including weather, the value of stocks, account balances, sports scores, and many more.

These oracles are useful to blockchains because they provide a reliable way of initiating smart contracts when outside parameters are satisfied. However, the main problem with these oracles is that they are centralized in nature.

It is this centralized aspect that is the weakest spot in the blockchain. The entire network is subjected to risk if any one of the oracles gets compromised or corrupted.

How does Chainlink Solve the Problem? What are its Benefits?

The success of Chainlink is that it tries to solve the “Oracle Problem” by integrating various next-gen protocols and ultimately creating the first blockchain oracle network of the world.

Chainlink allows companies to leverage the powerful network expansion capability of oracles in a trustless manner. This new system ensures that all the users receive corruption-free, correct, and timely data. Even if there is a single node failure, the Chainlink system automatically replaces it with a higher ranking alternative.

How does Chainlink Work?

It wants to create the first blockchain oracle network in the world. Chainlink’s ecosystem starts working with the user putting out a request for information, which would be listed as a blockchain event within the network. A Chainlink SLA (Service Level Agreement) Contract would then be created, which in turn will launch 3 other contracts in the system:

1. Chainlink Reputation Contract

The authenticity of the oracle is verified by the first contract. The history of every oracle (accuracy as well as past contributions) is reviewed by this coding. Chainlink Reputation Contract provides a rank to every oracle at the end of the assessment, thereby helping the system of utilizing the best oracles.

2. Chainlink Order-Matching Contract

The Requesting Contract is delivered to the Chainlink nodes by the second contract. The nodes start bidding on the first contract after the nodes receive this request. The number of nodes as well as the node type is automatically configured by the system for completing the request using preprogrammed prerequisites.

3. Chainlink Aggregation Contract

It is the last contract that reconciles incorrect data. All the data that have been completed during the previous checks and balances are now reviewed by the system. Any data that is not in sync with the other network inputs are disregarded by this aggregating contract. The data is validated and made available to the blockchain once this step is completed.

That’s how Chainlink works within a decentralized oracle system and solves the info-communication problem to-and-from the blockchain, thereby bridging the gap between the blockchain world and the outside world.

What are the Reasons for Investing in ChainLink as a new Bitcoin Investment?

You should invest in ChainLink because it solves a lot of real-world problems, which makes it more suitable for investment.

1. Bridges Gap between the Smart Contracts and Real-world Off-Chain Applications

The decentralized oracle system of Chainlink verifies the real-world data used within blockchain-based smart contracts and then bridges the yawning gap between the smart contracts and real-world off-chain applications.

Example:

Chainlink helps decentralized exchanges (DEXs) to utilize the power of oracles in a trustless manner for determining the price of cryptocurrencies without offering an order book. The best thing is that the users get non-corrupt, correct, and timely data. If there is any node failure, it will be automatically replaced with a higher ranking alternative by the process mentioned in the above-mentioned “How it works” section.

2. Gained Major Recognition from Google

In 2019, Google Cloud demonstrated Chainlink technology, which helped it to get major recognition.

3. Major Partnerships

  • Chainlink has forged a partnership with a blockchain startup Hdac Technology (which was founded by the CEO of software firm Hyundai BS&C, Dae Sun Chung) in 2020. The two companies are jointly developing a system to deliver off-chain data on the blockchain.
  • Chainlink has also partnered with Oracle for allowing startups to sell their data.
  • Thomson Reuters has started working with the Chainlink team on a PoC (proof of concept) for their own internal services, smart contracts, and collaborations with SWIFT.
  • Some of the other partnerships of Chainlink are Zilliqa, Synthetix, Matic, Hedera Hashgraph, and Harmony.
  • Chainlink’s CEO Sergey Nazarov has recently said that they will continue working with multifarious enterprises in different ways.

4. Perfect Mix of Technology and Community

Chainlink is the perfect cryptocurrency to invest in because the project has the perfect mix of technology (as well as the means of developing it further) and a community with unrivaled support for the project. For rigorously validating vendor claims, Gartner has awarded it with the status of Gartner Cool Vendor.

5. Easy Availability

Chainlink (LINK) is among the top-10 most popular cryptocurrencies in terms of market cap. It is listed on all major cryptocurrency exchanges including Coinbase and Binance.

Chainlink (LINK) is a good investment for you. Most crypto experts say that in the coming 3-to-5 years, the price will increase to around US$82.101-US$121.78 level. Considering the 660% increase in 2020, some analysts are highly bullish on this crypto. They believe that the LINK price is likely to hit the US$1,000 mark in the future.

How to Buy Chainlink (LINK)?

You can buy Chainlink (LINK) from all major cryptocurrency and Bitcoin exchanges. First of all, you have to get connected to the internet and register a crypto trading account with a reputed crypto exchange such as Binance, Coinbase, or others for proving your identity.

Once you have an account with any of the leading and reliable online brokers, link a bank account (savings account or checking account), debit card, or another form of payment option and load your cryptocurrency exchange wallets. Funding of the account can also be done through credit cards or peer to peer technology (P2P) platforms. After this, it will take a few minutes to start trading on the trading platform.

You can’t buy Chainlink (LINK), just like any other altcoin, with your fiat money (US Dollar, Euro, etc.). The first step involves trading your fiat currency over to Bitcoin (BTC) or Ethereum (ETH). Select the LINK trading pair (such as LINK/USD), match your cryptocurrency, and the amount for which you want to trade. Once this step is complete, you’ll receive a LINK in your exchange wallet quickly. Always keep your private key secure from others.

For a more expert opinion, you can take personal finance opinions from financial advisors, fund managers, and wealth managers. In fact, you can also learn investing basics of cryptocurrencies to make more gains. You can start going through Wall Street Journal and other investing magazines on cryptos to learn more about investing in cryptocurrencies and make better financial decisions. Learn about valuation calculation to true bitcoin value and assess the overpriced or underpriced situations instantly.

The days of investing only in Bitcoin are slowly but surely fading. If you buy bitcoins, you should also buy other prospective altcoins such as Chainlink LINK, Ethereum ETH, Cardano ADA, Bitcoin Cash BCH, and other cryptocurrencies. If you are comfortable investing in risky assets, you can also buy stocks from Dow Jones or similar other leading indices. You can now lessen your bitcoin exposure and instead start investing in other altcoins and stocks for a diversified portfolio. Consult financial advisors to know which are the cryptocurrencies and stocks to buy for both short term and long term growth prospects.

The return you get from crypto assets is significantly higher than other assets such as real estate, gold, value stocks, dividend stocks, overall stock market, CD rates, buying and selling of index funds, mutual funds, and other assets.

Once you buy Bitcoin, Chainlink, or other cryptos, you should keep them in either hot wallets (if holding for a shorter time period) or cold wallets (also called cold storage) such as hardware wallets (if holding for a longer period of time). The purchased bitcoin, Chainlink, and other cryptos must be stored securely in cryptocurrency or bitcoin wallets. Create a well-balanced investment portfolio consisting of cryptos, stocks, low-risk investments, and many more. As cryptocurrencies provide higher returns in the long run, you can consider including them in retirement accounts or IRA accounts.

Have you invested in bitcoin yet? If not, don’t wait for the SEC (securities and exchange commission) to regulate the crypto industry further. Invest now to make maximum profit in the near future.

You can also consider the Cryptocurrency Trading Robots that scan the market automatically in real-time and trades for you. They run 24/7, which means that you can keep earning your passive income even when you are sleeping. This gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.

Smart crypto investors always remain prepared to get the best of a big market move. They don’t wake up suddenly. To remain alert round the clock, they use cryptocurrency trading bots such as NapBots.com so that they don’t miss any big market movement.

NapBots.com is a Trading Bot, a cloud-based platform, on which you can connect to major Bitcoin exchanges such as Binance, Bitmex, Bitfinex, OKEX, Kraken, Bitstamp, and Bitpanda.

The best thing about the Napbots trading software is that you don’t have to monitor charts and candles to predict your next move. Any novice trader with zero skills can also start trading like a pro and earn money with this unique trading tool. Let Napbots take full control over your trades in just a few clicks. Now, sit back and enjoy earning money.

What are the Differences Between making Bitcoin Investment and Bitcoin-like investment with Napbots and Without?

NapBots crypto trading software is special because it comes with:

  1. A unique trading algorithm that processes market data for you
  2. A unique crypto trading bot library so that you can create your own mix of trading strategies
  3. Autopilot mode that enables you to automate trading 24×7
  4. An easy-to-use interface so that you can copy the proven strategies of NapBots to make successful trades and make money

NapBots offers complete trading automation solutions through the use of its own tested trading strategies; offering quantitative trading strategies previously reserved for hedge funds to the public.

The setup and installation process are easy. So, the non-experts can also use it. The simple and special approach of NapBots helps it provide you with excellent ROI.  

The team of professionals behind NapBots has extensive experience in the financial market. They have put their years of experience in place so that you can easily automate the management of your funds with no technical skills. This service can run 24/7 and work as your passive source of revenue even when you sleep.

Related Resources:

If you still need assistance, you can refer to the following  guides: