In this day and age, where there are so many cryptos, and the new ones are popping up almost every other day, it can be quite difficult to decide which ones are worth investing into. A lot of them seem like they are a pretty good deal, and have a lot of potentials, only to prove too unstable and crash way to easily the first time the market goes through another crisis. This is why it is important to find a crypto worth investing in, and many believe that EOS is a perfect choice.
What is EOS?
It was created by Dan Larimer and Block.one. Its main goal is to solve issues regarding scalability, speed, and to improve the user experience by eliminating transaction fees, providing account recovery, and alike. This is achieved through the use of Delegated Proof-of-Stake consensus mechanism.
All in all, EOS is a very good investment opportunity, and there are many reasons why that is.
Why should you invest in EOS?
The first thing that you need to consider when choosing a crypto to invest in is who is behind it. A lot of cryptos have a seemingly good quality to their name, but they crash and burn because of the team that cannot handle it properly. This is not the case with EOS, since both its creator, as well as the team behind it are professionals with a lot of successful projects backing this claim up.
Not only that, but EOS even managed to attract the attention of a few billionaires, Eric Schmidt and Mike Novogratz. For a lot of people, this is more than enough proof that EOS has real potential since you don’t become a billionaire by making bad business decisions.
The next thing to have in mind is EOS’ design, which was imagined with scalability in mind. This is an issue with a lot of blockchains that were taken by surprise when mass adoption of 2018 started since they simply couldn’t scale and deal with it. Not that they won’t, eventually, but they cannot do it right now. In EOS’ case, however, scalability is something that is actually prioritized, which allows it to target apps that require decentralization but wouldn’t affect performance, like Twitter, for example.
Scalability is a large and complex issue that cannot be solved with one update, and it has a nasty way to go around any attempt to solve it, and just come back. It is safe to say that it will remain an issue for a fair number of years ahead of us, but the internet itself used to have the same problem, and it got solved after a while.
Another thing that makes EOS worthy of consideration is its competitor’s current state. Ethereum (ETH) posted a pretty big goal for itself, which was to become a decentralized world computer. Somewhere along the way, it realized that this will require a lot of time and work, which made it postpone its plans.
The developers have two options – they can wait and keep postponing their dApps for years, or they can migrate to a different blockchain that is better equipped to handle scalability. If they decide to go for blockchain migration, this will put EOS in the position of power and will allow it to take advantage of ETH’s projects.
Not to mention that EOS managed to raise around $2 billion via a year-long ICO, which can allow it to dump ETH on the open market, and therefore damage ETH’s value a lot.
EOS doesn’t have to worry about funding
Running a successful blockchain is not cheap, and the team needs constant funds in order to continue the blockchain’s development. A lot of cryptos rely on mining fees and inflation in order to fund their development, but EOS only relies on inflation. Its annual inflation is 5%, which it uses to pay block producers, and all that remains is used for whatever the token holders vote for.
Additionally, the Block.one team invested a lot into funds reserved for their ecosystem. They decided to make sure that they will always have active projects with a lot of potential and support.
And, let us remember that EOS is just about to launch its main net, which proved to be pretty good during the testnet’s experiments.
Finally, holding EOS tokens allows for using the resources of its shared network. This means that you will have access to storage, bandwidth, and alike, and all you need to do is invest in this crypto. It is just like owning a digital real estate, where the amount of tokens provides a percentage of space that is at your disposal.
So far, it is to early to see what will happen with EOS in the future and whether it will manage to live up to its plans and promises. What can be said, even at this point, is that it has a lot of potentials, a good team, a successful leader who knows what he is doing, and a plan to become great. With all of this in mind, it is easy to see why EOS is a pretty safe investment at this point.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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