Pros and Cons of Investing in Tron
Introduction to Tron
Tron was introduced by Justin Sun in 2017. Despite being brought under the common umbrella of cryptocurrencies, Tron differs a big deal from transactional currencies like Bitcoin Litecoin or Dogecoin. Tron expects to create an integrated digital space for entertainment where TRX would be used as the native coin. This non-profit organization offers free distributed storage technology for digital content from all over the world.
The prime purpose of this Singapore-based project is to empower creators and artists in a world that is constantly digitized. The Tron network helps with the proliferation and monetization of the artworks and other digital content without depending on an intermediary, who would charge heftily for their services. The Tron network wishes to give the art benefit directly to the creators and help them determine the value of their work.
Working of Tron (TRX)
Tron has three integral points that help it offer its services seamlessly. The Tron network is the blockchain that enables all the project operations. The blockchain consists of three layers, and each of them is provided with separate duties to oversee the chain. The storage layer helps store and curate digital content created by the users in a secure distributed database. The core layer on the chain takes care of the smart contracts, consensus modules, and other aspects of account management. The application manages the creation and launching of decentralized projects and apps.
Tron Foundation is the mother organization from Singapore that manages the development and devises new plans to widen its vision. TRX, alternatively called Tronix, is the native coin of this digital ecosystem used for all transactions.
Pros and Cons of Tron
It does not matter how lucrative the infrastructure may seem, any cryptocurrency is subject to the whims of the market. But we can always find the best investment from the line of coins found on the board. Here are a few things to help while considering Tron for investment.
- Tron posts healthy numbers in all aspects. Recently the number of accounts on the chain exceeded 70 million and transactions jumped to nearly 3 billion.
- Tron currently trades at $0.06, making it one of the most affordable coins. Purchase of 1000 TRX would not exceed $60, with predictions of a 77% increase in the upcoming days.
- This is a third-generation blockchain with great transaction speed. And you can process your requests for absolutely zero cost.
- Tron also recorded rapid growth in Total value locked with $14.2 billion in May. This is more than twice as much as it had in March. Currently, Tron accounts for more than 20% of the TVL in DeFi.
- Tron has formed some seminal partnerships in the years since its launch. Samsung, OperaWeb and Mix Marcel are some noteworthy alliances by Tron.
- The line of Apps like JustLend and SunSwap also add to the value of the network.
- Tron also owns the record for having the largest circulation of stablecoins with more than 30 million USDT coins.
- Tron is still far behind Ethereum and the suspicions about its ability have resulted in the bearish predictions for the coin in the long term.
- Tron lost position in the top 20 digital assets list and also failed to earn a place in the Developer Activity List.
- The project is still affected by the news and developments of Bitcoin. TRX plunged to the bottom following regulations on Bitcoin in China.
Tron Price Prediction for Upcoming Years
The current price of Tron is just over a nickel, but that does not have to worry about; as the firm has been making some significant changes to its infrastructure. Although some believe that the coin could have a bearish sentiment in the future, a great many of them believe that it could post significant growth. According to Tron price prediction experts, there could be a 400% growth in the coin in the next five years. The coin would reach $0.21 by 2023, a 150% growth in just a couple of years. These predictions would change big time as Tron executes its plans and partnerships in the future.
Is Buying Tron Profitable?
Tron could be a low-risk investment option for novice traders, given the affordability of the coin. The coin is expected to post some short-term movements in the market, making the current dip an optimal time for a low-risk investment. Long-term, however, does not seem as attractive as short-term, thanks to bearish predictions by the experts. Tron’s plans for future partnerships could invert this prediction by a large margin. Even if the partnerships do not work, the loss will not hit bottom as anyone would think. At the current price of $0.0679, investing $100,000 could potentially make one a millionaire by 2025 if the coin hits $0.763 as predicted.
Could Tron be a better investment option for 2022? Well, the question cannot have one answer. Tron, like any other cryptocurrency, does come with standard risks. But, if one has to lock on to an answer for this question, that would be a ‘yes.’ A precisely planned investment in Tron could bring both short-term and long-term profits.