October 30, 2017
Our last post on Stellar Lumens was written two months ago and we patiently waited for our prediction to be realised. We decided not to create more noise than was absolutely necessary but now our readers deserve a long-awaited update! This article is a call to our readers to remain bullish on Stellar Lumens. We reiterate our stance that the cryptocurrency is undervalued and the recent gains experienced in the past few weeks are only a taste of what’s to come.
At this point, you will likely not need us to tell you that Stellar Lumens has risen exponentially. Some of our readers bought in at 0.018 cents on August 29 and have experienced 250%+ gains in the past two months, simply by taking a buy and hold approach to Stellar Lumens. Why reinvent the wheel when a buy and hold strategy will suffice?
The cryptocurrency phenomenon, especially the presence of ICOs, has made us all impatient. The promise of quick gains with over 1,000 different types of cryptocurrencies to select from means that it is very difficult to move away from speculation and the emotional volatility it entails. This blinds us in making the right investment.
This is why real world application is so significant for any cryptocurrency. The key barrier to entry of blockchain and the widespread use of any particular cryptocurrency, be it bitcoin, ether or lumens, comes down to the fact that the concept of blockchain has been slow to move from the concept stage to the real world. This is why the IBM partnership with Stellar has been significant. The news is an important validation of blockchain technology and proof of tangible steps towards real world application facilitating cross-border payments in an efficient, scalable and cost-effective way.
What is to say that Stellar Lumens’ application will be limited to person-to-person payments? With IBM’s blockchain integration with Wal-Mart, Nestlé, Tyson Foods, and Kroger among others, it is not far-fetched to imagine Stellar Lumens working in the background as the standard facilitator of consumer payments be it via fiat or cryptocurrency.
Neither should we be too hard on the cryptocurrency industry. It is still a young phenomenon and some self-professed pundits say that 2018 is likely going to see bigger and better gains than the explosion we have experienced this year. This will likely be because 2017 was the year of speculators, and 2018 will be the year of actual investors. We do not doubt that Stellar will be a high performer in 2018, likely because we will start seeing more money flooding in from those investors that will counteract the negative effects of pump and dump schemes from cryptocurrency whales.
However, don’t see cryptocurrency whales as enemies. The way that we see it is that market manipulation can have a very positive spin and the behaviour of these whales comes in a number of waves when it comes to solid cryptocurrencies such as lumens. These whales will be out to increase their number of holdings but the fact is that new money will come in as mentioned above and that is testament to the volumes we have seen recently.
What has been very reassuring is the increasing attention we have seen in the news, and among the community especially on Reddit and Facebook about Stellar. Let’s keep that up. Among those will be speculators and investors but at the end of the day, those that will benefit the most are those that take an informed approach observing what tangible steps are taken towards real world application.
In other words, this article is a call to those who are speculative about Stellar Lumens right now, to hold tight, and to be one of the first investors who will contribute to the next bullish phase that we will experience in 2018.