Algorand is a relative newcomer to the cryptocurrency scene, making it an exciting new investment opportunity. Although Algorand was founded back in 2017, it began gaining momentum with investors in 2019 when it went public. Those looking to expand their cryptocurrency investment portfolio have been interested in Algorand’s forward-thinking strategies.
Algorand has taken on board the shortcomings of the longer-standing cryptocurrencies and aims to bridge the gaps where others fall short. They are still a decentralized cryptocurrency using blockchain technology to build their network. However, they are incorporating the key feature of security with the scalability and adoption needed to make this cryptocurrency a global success.
The technical complexity of many of the initial blockchains has held them back. Most people have not been able to use them. Algorand focuses on simplicity in order to fix this ongoing problem across the cryptocurrency market. This gives exciting expansion possibilities which make Algorand a lucrative investment opportunity.
The Algorand platform prides itself on being a trustworthy space that is easily accessible for users and investors. They run a permission-free proof of stake (PoS) blockchain system which is lightning fast. Compared to the slower transactions seen with the larger cryptocurrencies, Algorand completes its transfers and purchases in a few seconds. Speed is a key factor for investors to consider as it allows very accurate buying and selling to take place.
Speed has also been a factor preventing global cryptocurrency adoption, however, Algorand’s speeds rival current banking systems. They also avoid the confusing forking of blockchains seen elsewhere in the decentralized finance (Defi) sector.
These new features are making Algorand an impressive investment option for 2022. The native coin ALGO has found its place in the wider Defi sector and is now a rising name in the cryptocurrency market.
How Does Algorand Work?
Algorand uses PoS blockchain technology to form a secure and easily accessible platform for using their cryptocurrency. It works using cryptographic sortition to randomly select users to vote on each addition to the blockchain. This verifies and secures each transaction by using the honest majority as continuing security.
The system has five main steps. A block is proposed to the network, this is then voted on. Thirdly the block is certified and then the node operators receive this information and add it to the blockchain ledger. This fully documents the transaction and finally, the process restarts with the next addition to the blockchain.
Any user of Algorand can function as a participation note to vote on these transactions and strengthen the transaction security. The speed of the system is due to the relay nodes already embedded in the Algorand system that is spread globally to remain decentralized. These ensure that users are not the only people relied upon to complete the transactions.
All selections of voters and nodes are randomized for further security and decentralization. This makes control a community matter which further improves overall network security as there is no clear point for a hacker to attack.
The low cost of participating in the Algorand system, its public and open set up and its speed and scalability are the main factors leading to increased investment. Those deciding on their 2022 investment strategies are keen to join the Algorand community while it is still in its early stages to gain maximum profits.
Read Also: 10 Reasons Why You Should Invest In Algorand (ALGO) Today
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Algorand Security and Scalability
Algorand has developed using a PoS consensus protocol called the Byzantine agreement. This ensures that as long as the majority of users of Algorand are honest and have no criminal intentions then any attempted attacks will fail.
The system is further secured as any attack would have no knowledge of who would be involved in any given transaction. Because this is random, it is not possible to gain that information. The speed of the transaction then makes any information useless to attackers after the transaction, as it has already been verified.
As investors are always keen to check the security surrounding a potential cryptocurrency, this is a core factor leading to new purchases of Algorand.
Further factors which make Algorand a scalable investment are its lack of mining tasks, the small number of users needed for each transaction, the secure selection process, and the speed of completion. These elements are leading analysts across the cryptocurrency sector to assess Algorand as a positive financial opportunity going forward.
Rewards for verifying transactions are also proportional to the amount of Algorand each person has, which incentivizes further expansion and adoption of the cryptocurrency.
Algorand No-Fork Policy
Forking is common across the cryptocurrency scene with many of the older cryptocurrencies forking multiple times. Each time a blockchain cryptocurrency forks there is confusion for users and investors over which is the continuing cryptocurrency and which is the newly created blockchain.
The disputes of different forks of a blockchain lead to the previous users splitting into two groups, with less support behind the original cryptocurrency. To avoid these problems, Algorand has avoided forking completely.
Proof of work systems were the first on the cryptocurrency market and they were prone to these forks. The PoS consensus system used by Algorand does not allow two blocks to be generated simultaneously. This means that forks are not created in the first place as transactions are finalized. This is a positive factor for both users and investors to consider as it limits the possibility of complications later on.
Trading ALGO to USD
After going public in 2019 Algorand had a strong start for a new cryptocurrency, rising to about $2. However, 2020 saw the ALGO coin drop to around $0.25 and experience a long resistance period with a lot of sideways trading. However, now that the 2021 crypto boom has given momentum to the cryptocurrency market, ALGO is back on track.
ALGO experienced an early surge during the 2021 crypto take-off and was one of the earlier coins to show promising growth. ALGO also managed to sustain the increased coin price without suffering any harsh corrections as it moved back towards £1.50. In the market-wide dip during June and July ALGO managed to stay close to the $1.00 and maintain a decent trading position.
The recovery after the bearish summer trading period has given investors new reason to be excited about ALGO as it hit an all-time high of $2.54. This speedy return to bullish trading was a very good performance given the struggling market at this point. As we near 2022 Algo is maintaining a healthy trading pattern. The next surge should take place in early 2022 as this pattern continues, making ALGO an affordable investment option for 2022.
Check Out: Is Algorand Worth Investing?
Will Algorand Rebound From The Last Correction?
Algorand has corrected down from its high of £2.54, however, the dip was not steep and the coin is frequently returning to the $2.00 mark. It is very likely that the next surge will take ALGO past the previous high point and more than make up for the correction in the final quarter of 2021.
As we look toward 2022 ALGO is likely to continue to maintain good trading patterns following each surge. The previous corrections have been less dramatic than seen across the crypto market, which should help ALGO climb in price throughout 2022.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Predictions For Algorand In 2022 And The Future
Algorand is likely to be at around $2.5 by early 2022. The ALGO coin should then achieve $3 by the end of 2022, even as a conservative estimate. The 2023 predictions expect this to be a slightly more volatile year with ALGO rising to $4 but returning towards $3. However, by the end of 2023 and early 2024 ALGO should be above $5 based on the current expert analysis.
By 2025 the steady upward trajectory should put ALGO at around $6.5, providing a steady revenue stream over time to those investing early on, between the final quarter of 2021 and early 2022.
The more conservative estimates are expecting a slow upward track for ALGO, with the higher estimates coming in around the $8 mark over a three-year period.
As further expansion occurs for the Algorand platform, increased usage and global adoption of ALGO could push the coin price up faster. The current movements by founder Silvio Macali are suggesting that this could be the case as soon as 2022:
‘JUST IN: @SkyBridge announced a new $250M fund to accelerate #dApp growth on Algorand! Focusing on new financial applications across North America and the Middle East, this initiative will unlock a new wave of #DeFi applications on Algorand http://algo.me/fRHJ50G8VdL’
@Algorand, Twitter account of Algorand
As these investments are made into the overall Algorand platform, the surges that the ALGO coin achieves are likely to be higher than initially predicted. Investors are looking to invest early in 2022 to ensure maximum profits as the adoption of ALGO rises throughout the year.
Algorand Trading Forecast for 2022
Algorand is likely to return to its previous high of £2.54 as we start the first trading quarter of 2022. The projections are suggesting that the coin will continue to rise steadily despite the volatile trading cycle throughout the year. The characteristic mild corrections should continue to follow the surges, allowing the trading price to continue to build upon the current upward trend.
Between the second and third quarter of 2022 ALGO should surpass its all-time high of nearly $3.00, achieved soon after its public release. The going is then predicted to continue on a steady upward trajectory throughout 2022. This will provide good growth potential and positive returns over time.
Those who invest early in 2022 and buy during the correction dips are likely to make good percentage returns. The current trading model suggests that ALGO is a good long-term investment, rather than a short-term swing investment.
Don't Miss: Algorand Price Predictions
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FAQs
Who is behind Algorand?
Algorand was developed in 2017 by founder Silvio Micali before going public in 2019. Before starting Algorand Micali worked in the Electrical Engineering and Computer Science department at MIT. The day-to-day running of Algorand is also overseen by CEO Steve Kokinos who is a long-time entrepreneur. Micali has been pushing the sustainability of ALgorand since its development phase and is focused on the minimal carbon footprint of ALGO.
What is Algorand?
Algorand is a blockchain-based cryptocurrency with the native coin ALGO. It is a platform aiming to provide a secure, fast and accessible currency system to replace central banking. Algorand is decentralized and can be used for global transactions with a low fee cost and low energy cost.
How does ALGO compare to the market?
ALGO has currently got a market position of 19th in terms of market capitalization. It has a market cap of $11.8B at the time of writing, despite being a relatively cheap cryptocurrency to invest in. This is a very impressive market position given that this is a young coin and one with a low coin price compared to many of the other high-performance coins. This makes it a cheap option for those wanting to enter the market with a lower initial spend.
Should I invest in ALGO in 2022?
The predictions are signaling ALGO as a good investment opportunity for 2022, especially for those investing in the first quarter. However, later entry into the ALGO market should still lead to long-term profits as the coin price rises.
Is ALGO still going to go up?
The ALGO trajectory is expected to continue in an upward trend, which would lead to a steady rise in coin price in 2022 and throughout the next 5 years. Algo is likely to increase in price going forward with a slight slow in growth during 2023. The price will experience some dips due to the volatile trading pattern but the overall direction has good upward momentum.
What will ALGO prices rise to in 2022?
ALGO is expected to rise from the current price of $1.93 to $2.54-$3.23 by the third quarter of 2022. This would provide positive returns, and would be profitable for those investing at the current price. The coin is just below the $2 mark at the time of writing but is likely to rise considerably in early 2022. Some experts predict that ALGO could hit $5 by the end of 2022.