What is The Future Of NEO Coins?

By Prashant Jha

NEO coins, also known as Chinese Ethereum, and for good reasons, has proven its potential by making its entry into the Top 10 Cryptocurrency club.

NEO is not just a digital asset but way more than that, just like Ethereum it acts as a platform for other new entrants and helps them create a decentralized application and smart contracts, two big things in the Blockchain Technology.

The future of NEO or any other cryptocurrencies is not easy to predict, given the highly volatile nature of the crypto trade market. But, we can for sure make some assumptions based on its previous track record and market trends, let us see whether the Future of NEO coins will be bullish or bearish.

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NEO: More Than Just a Digital Token

There are more than 4000 cryptocurrencies listed on the trade market, amounting to $400 Billion in market capitalization. Out of these thousands of cryptocurrencies, the Top 10 cryptocurrencies make up to 70% of the total capitalization. The crypto market is so volatile that, Bitcoin lost 81% of its market share last year, while Ethereum was the biggest loser with over 91% drop.

The figures are indicative of two things,

  1. The market is heavily dominated by the top 10 cryptocurrencies.
  2. The volatile nature of digital currencies can plunge the market behavior in a matter of hours.

Now, coming to NEO, it is not just a digital asset for financial transactions, but a complete ecosystem focused on providing a platform for token creation and also help firms through their smart contract. Thus, the name Chinese Ethereum.

NEO was created in 2014 as the AntShare, however, it changed to NEO in July 2017, the complete ecosystem for providing Blockchain based products gives it a push in terms of prices too. There are few other aspects which make the NEO coin different from its peers.

  • NEO works on the two coin basis, NEO & GAS. On one hand, you have NEO which is a singular entity, and cannot be divided i.e you can only use NEO as a whole and not like 0.002 NEO coins.
  • GAS can be seen as a bonus for holding your NEO coins in the hard cold wallet, and the GAS incentive is directly proportional to time. Longer you hold NEO in your wallet, the more GAS you earn. GAS can be used by the NEO community to pay for transaction fee on the network. It is divisible too, so you can pay 0.5 or 0.005 GAS tokens.

What Makes NEO a Good Investment option?

Cryptocurrencies are yet to be recognized as a legal tender of financial exchange in the majority of the world. Most of these digital assets are categorized as “Security” apart from Bitcoin and Ethereum.

There has been significant growth in acceptance level in the last year, but still many believe more centralized authorities need to understand the importance of decentralization.

Among the hubs for cryptocurrencies, China is emerging as the leader among Asian countries, and NEO is said to be in the good books of the Chinese government, giving it the necessary market push.

Another factor which might prove critical in NEO’s growth is its all-around ecosystem status and more than just a digital token, which makes NEO more like shares of companies rather than just an independent digital asset. thus, it can prove to be a good investment option.

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NEO Price History

NEO’s name change from AntShare to the current one in July 2017 also proved beneficial for its market value, as the prices started to climb from July 2017 itself. In July the price of one NEO coin was around $6, and if you might have invested $100 at that time, your investment would have grown to $27,00 in January 2018, a massive 2600% rise.

The major reason apart from the name change is its closeness with the Chinese government and also projecting itself as something more than a digital asset.

It’s parallels with Ethereum and comparison to the second highest cryptocurrency also gave it a necessary upward movement in terms of market price. Later the NEO showed it is not just a copy of the Ethereum and can do a few things better than the Ethereum network.

You May Also Read: Cons and Pros of NEO

What is The Future of NEO Coins?

The future is not certain and that’s what makes it interesting, the same holds true in case of NEO coins or any other cryptocurrencies. We have already seen in the past, how Bitcoin Price Prediction For 2018 was nowhere near the actual price. So we would use the word “presume” rather than “predict”.

The current price of NEO stands at $7.87, while smartereum.com has put the price prediction at $355. The analysis is based on a couple of factors, such as

  • rising interest of institutional investors in NEO
  • Technical advantages offered by NEO’s platform over that of Ethereum
  • NEO’s focus on the digitization of assets rather than just the digitization of the currency

However, looking at the current price the prediction looks quite optimistic, given most of the crypto assets have faced heavy resistance even after entering into the first quarter of 2019.

Brian Evans a famous angel investor has complete trust in the NEO coin and he goes a step further to predict that NEO might replace Bitcoin in near future, for its complete ecosystem and solutions. He says,

The big move for NEO is creating an entire smart economy. It has incorporated digital assets, smart contracts and a digital identity that can be used for real-world applications and become integrated into the real economy. China could (and may) be a candidate for that first real-world application and integration.

Conclusion

Whether the future is bright or dull for the Chinese Ethereum aka NEO, only the time would tell. However, its focus on building a complete decentralized platform can make it a player of the long run. The NEO network holds many advantages over Ethereum as it provides the user with the option to code in several languages, rather than just one on Ethereum platform. Its two coin policy might prove a success as well, as it has been rightly implemented.

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Prashant Jha

As a content writer Prashant believes in presenting complex topics in simple laymen terms. He is a tech enthusiast and an avid reader.

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