Gain extensive insight into the pros and cons of investing in Internet Computer which would push you ahead to know if it is a good idea to invest in Internet Computer.
Internet Computer was launched last May and could be the new digital asset needed to bring enormous gains to your portfolio of investments. In this article, we are going to take an in-depth look at why you may consider investing in Internet Computer, the pros and cons, and the essential factors to look out for.
Before deciding on investing in Internet Computer, you must understand the tenets of the cryptocurrency. Investing in Internet Computer as someone who failed to conduct fundamental and technical analysis puts you on an irrecoverable loss path.
First and foremost, Internet Computer is not like other cryptocurrencies on the market which took time to cross certain price milestones. Instead, the possibilities of its blockchain technology allow the digital asset to add something fresh and unique to the decentralized finance system. This distinguishes Internet Computer from other crypto trading assets on the market.
Internet Computer, unlike Ripple, Bitcoin, Ethereum, Cardano, Tron, or Binance, is an entirely new protocol that allows content creators and software developers to publish anything on the internet without having to go through centralized authorities such as Facebook, Microsoft, Amazon, and other servers.
While this unique ideology presents a sound opportunity for investments, as a trader or investor, you must know what Internet Computer entails, what it does, and any negatives to look out for. This is highly essential since cryptocurrencies are highly volatile assets that are not perfect.
- What is an Internet Computer?
- The Pros of Investing in Internet Computer
- The Cons of Investing in Internet Computer
- So, Is Internet Computer a Good Investment?
- Will Internet Computer Be a Millionaire-Maker?
What Is An Internet Computer?
Internet Computer is a decentralized, blockchain-driven protocol that allows creators and developers to launch applications and services that run on nodes distributed around the world, seemingly resistant to censorship and oversight from traditional web hosts and platforms.
To put it simply, every node which participates in the network plays the role of an internet server. British Computer Scientist Dominic Williams is widely credited as the creator of Internet Computer in May 2021. He has a team of 188 members which comprises operational experts, computer engineers, and cryptographers who have worked on the project in the past 5 years. The project is being overseen by Dfinity Foundation, a non-profit organization in Zurich, Switzerland.
Internet Computer effectively exists as three separate but interdependent technologies.
- The Internet Computer Protocol - A blockchain network serves as a broad server for web publishing activities to be conducted easily and faster.
- ICP is the digital currency of the blockchain which serves as a fuel for computation and is also used for network governance within the Internet Computer ecosystem.
- Dfinity Foundation - This is the company behind the development and marketing of Internet Computer Protocol as well as its novel token, ICP.
The primary aim behind Internet Computer is to make web publishing easier and faster, without the influence of powerful technology companies which are highly centralized. Currently, there are several web-based applications and software which give users and creators little control over how they want to access it.
The projects face, Dominic Williams has pointed out that developers and creators will abandon the outmoded Information Technology infrastructure and big technology companies such as Facebook and Amazon. In the process, they can rely on a seamless network of computing power that emanates from independent data centers globally.
With this, all stakeholders of the internet can reduce costs by avoiding corporate-driven technological platforms.
Internet Computer is offering a unique platform that is reinventing the public internet. Moreover, users can employ their creative ingenuity to design and build their own social media platforms as well as other applications which can directly compete with the currently existing products of technology giants.
Launched on cryptocurrency exchanges on Monday, 10th March, ICP reached an all-time high of $737.20 on the day. ICP closed at $428.36 to end the day.
ICP opened Tuesday, 11th May at $428.48 and exchanged hands for $364.79 to close out the day.
On Wednesday, 12th May Internet Computer opened at $366.95 and closed at $255.49. This is a huge pattern of a high opening price and a relatively lower closing price.
This can be attributed to the newness of the cryptocurrency as well as the sell-off by investors who cashed in on the novel token.
Huge trading volumes in less than a week of existence signals investor interest in the cryptocurrency. What’s more, 125,000 people registered for its official launch on Saturday, 8th May 2021.
Internet Computer have joined other new projects on the market such as Shiba Inu and Safemoon. The cryptocurrency’s market valuation has also improved the market value of cryptocurrencies from 1 trillion at the start of 2021 to $2.83 trillion in November the same year.
After stunning several analysts and experts with its current rank of being the ninth-largest digital asset in the world, it may compete with well-established technology companies for the same virtual customers.
According to the Dfinity Foundation, “Using the internet computer, developers can create websites, enterprise IT systems and internet services by installing their code directly on the public internet and dispense with server computers and commercial cloud services.”
To help provide you with in-depth information about your next trading or investing move which may include ICP, here are the pros and cons of investing in Internet Computer.
If you want to know more about the pros and cons of investing in Internet Computer so that you can decide as to whether it is a good idea to invest in ICP, then Trading Education is the right place to serve you the required educational knowledge.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
The Pros Of Investing In Internet Computer
What Are The Benefits Of Investing In Internet Computer?
Internet Computer (ICP) has garnered thousands of followers after its release. With strong activity on the cryptocurrency, analysts and experts at several crypto finance portals have made estimates about the digital asset. While a few remain conservative, many are extremely bullish about the chances of the cryptocurrency on the market. So, what are the pros which can help ICP reach some of these price forecasts?
✅ Provides Decentralized Framework free from Censorship
According to ConSenSys alum and crypto investor, John Lilic, “The way things are right now you could say that Ethereum execution environments are subject to big tech governments.”
There could be some form of censorship in the future. Fortunately, the Internet Computer has structured itself in a way to flee such control. As long as interfaces being used are hosted by cloud providers such as Amazon and Microsoft, decentralized applications (DAPPS) are vulnerable.
This is because you are not directly interacting with a blockchain. You are interacting with a website (cloud hosting platform) that is interacting with a blockchain. The Internet Computer runs across a network of database centers deployed globally. This means that a website is not hosted on one specific database center but several. This makes it difficult to be censored.
This is because regulation by a financial body in one country could cease a technological company under its regulation from powering the application. Since there is more than a single database center, the other database centers would be running the applications efficiently and providing users with great software solutions.
With such a special feature, more DAPPS across Ethereum, Tron, and EOS.io could migrate to the Internet Computer soon. This could see it become an Ethereum Killer and the new king of not only decentralized finance but infinite blockchains.
✅ Started Off Trading Journey with Huge Investor Interest
The start of a tradable token is essentially important for its survival. Having a relatively higher trade volume does not mean that an asset is worth consideration for investment, but it sends signals to potential buyers that something is going on with this asset.
ICP closed its first day of trading on 10th May with a volume of $290 million. This was followed by a 473.263% increase on 11th May and closed the day with a trading volume of $1.6 billion. ICP dropped slightly in trading volume to $1 billion on 12th May.
For an asset with less than a month of trading experience, having such substantial sums of money being thrown into it means the innovation behind the cryptocurrency is offering traders and investors something unique.
According to GilMartin Group, “Volume gives investors an idea of the price action of a security and whether to buy or sell the security. Increasing trading volume is generally associated with positive price movement, and vice versa.” With the quote by the GilMartin Group under perspective, Internet Computer is poised for a substantial positive price movement in the future.
✅ ICP is Extremely Accessible
Internet Computer (ICP) unlike several cryptocurrencies which may not have come to the market at the right time has found favour in the eyes of cryptocurrency exchanges and brokerages.
It is currently listed on Binance, Coinbase Pro, Huobi Global, WBF Exchange, and OKEx among a host of others. The popularity of such exchanges exposes ICP to millions of traders and investors, who would like to buy, sell and hold for the long term.
In a new study conducted by one of the best portals which track consumer data and market trends, Statista, the exchanges which have listed ICP as a tradable token featured strongly.
The study aimed to track the 100 biggest cryptocurrency exchanges in the world based on 24-hour volume on Wednesday, 12th May 2021.
Binance topped the chart with a trading volume of $49.31 billion. Huobi Global finished 3rd with a volume of $19.31 billion. OKEx came in 5th place with an impressive volume of $12.94 billion. Coinbase Pro was featured in the 9th position with a volume of $8.02 billion and WBF Exchange had a volume of $5.87 billion coming in the 16th position.
Cryptocurrencies such as Dogecoin (DOGE) struggled to break into the mainstream as a result of a lack of enlistment by major cryptocurrency exchanges.
With such great exposure, more liquidity is going to pour into ICP. This would contribute to improved daily volumes of the digital asset and have a positive reflection on the market capitalization of the cryptocurrency.
✅ Gained Popularity in a Short Time
The making of the Internet Computer Protocol and its novel token was 5 years in the making. This means that the development team took time to find the right moment to release the project to the general public.
The project may have started in 2016 and mired by the inception of opposition by China in 2017 which was followed by Japan in 2018, the team decided to wait for the right time. Digital assets recovered in 2019 but prices traded at fractions of the prices written next to their ticker symbols in 2017. Although there was a renewed interest in cryptocurrencies in 2020 buoyed by the new high lows of the pandemic as well as the distribution of the stimulus packages, DeFi apps took center stage.
Dominic Williams and his team allowed cryptocurrencies to draw attention from institutional investors. With several new all-time highs being recorded in February, March, April, and May, they decided to act. This has coincided with a huge demand by sophisticated and unsophisticated traders and investors for digital assets. This has brought overnight popularity not only to Internet Computer (ICP) but rivals Shiba Inu and Safemoon which are trending across social media platforms.
The popularity of ICP in less than a week after its launch on cryptocurrency exchanges saw it command a price of $317.45 on May 14th. Only time will tell the real value of the cryptocurrency when it achieves full functionality and competes with high technological corporations for a share of the internet market.
Check Out: Why Internet Computer Is Going To Explode
✅ Has a Strong Team behind the Protocol’s Development
The developers behind ICP are doing a great job. Instead of becoming a plug-and-play blockchain like Ethereum and Tron which acts and rides on feedback from users to make upgrades, the ICPs team decided to structure the project and deliver when the time is right.
With a team of 188 members, ICP has a relatively larger development team. The team comprises computer engineers, cryptographers, and operational experts. The computer engineers would ensure innovative technological features are included in the protocol.
On the part of the cryptographers, they are going to ensure cryptographic features included would make it possible for linkage of blocks in a secure manner. The features would also ensure the immutability and readability of the data stored on the blockchain.
The operational experts will ensure that there is a strong promotion of the product for adoption. Buoyed by crypto enthusiast and founder Dominic Williams, he would inform fans of the cryptocurrency about the milestones to be accomplished periodically.
It seems ICP learned enormously from Charles Hoskinson’s Cardano and took time to develop its product. The innovation behind the protocol and the effectiveness of the team behind its development could drive millions of users to the platform. This would only increase demand in the novel token which would positively affect price in the future.
✅ ICP Has a Total Supply Cap Which Is Relatively Smaller
ICP has a relatively smaller total supply of 476,557,337. At the time of writing, the total number of ICPs in circulation was 199,026,764.78.
Currently, Bitcoin (BTC), Bitcoin Cash (BCH), Dash (DASH), and Stellar (XLM) are among the few cryptocurrencies with a finite supply. Suppose the current value of the ICPs total supply cap stays the same as the maximum supply of the cryptocurrency, the forces of demand and supply could set in, in the future.
ICPs on the market could become scarce. Once this happens, holders would be willing to sell the coins at prices set forth by them. This could drive the price of the digital asset to some of the bullish price milestones which have been forecasted by several analysts and experts.
✅ Enables Smart Contracts and More
Ethereum has the first-mover advantage when it comes to smart contract chains. Internet Computer Protocol also possesses this feature. What this means is that it is going to contribute to the number of decentralized finance applications already running.
The most interesting thing is the areas ICP would prioritize since there are thousands of DAPPS already running. Would ICP add up to decentralized lending, yield aggregation, insurance, or exchange? Would it bring new and improved applications which could compete with other well-established decentralized projects as well as centralized technological projects?
What ICP promises is a revolution of the internet and if there would be features for the creation of social media applications, then only time would tell the number of users and developers that would patronize the platform. With thousands of innovative products running on the network, ICP could break the dominance of Ethereum and technology giants (Facebook and Amazon Web Services) and become a mainstay in the digital world. Kindly note that The Internet Computer has built CanCan (a TikTok alternative) and there is an upcoming application called Open Chat.
✅ Already Making Plans for Future Improvements of the Network’s Infrastructure
Intending to ameliorate the influence of centralized tech companies, upgrades are essential to a protocol and its novel token’s survival in such a saturated market.
It's great music to the ears that the developers are planning to improve the infrastructure of the network so that social media applications, decentralized finance services, and many more can run at web speed.
Cryptocurrencies such as Nxt, Monero, Auroracoin, Luckycoin, and Peercoin did not run smart contracts. Neither did they have the necessary upgrades to be able to compete fair and square with other projects.
With such improvements, ICPs technology can serve millions of people without network congestion. This would increase the numbers of users on the platform and signal traders and investors to take advantage of the boom and purchase more ICPs.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
The Cons Of Investing In Internet Computer
What Are The Demerits Of Investing In Internet Computer?
Despite its strong run in its first week of trading, ICP like all assets is not perfect. There are several pitfalls you must take into consideration before deciding on investing in Internet Computer. Why are some analysts conservative about their price forecasts? What are the cons which can provide a better assessment of your decision on investing in Internet Computer?
❌ It’s highly volatile
ICP has achieved huge leaps and sharp recessions in its few days of trading. It jumped from $0 to a high of $730.73 and shed 41.38% of its price in a few hours on its opening day. The following days of its trading journey have been the same with several price fluctuations in the process.
Volatility is not bad for experienced day traders who know the right time to go long or short. For an inexperienced trader or investor, buying ICP and taking your eyes off the asset for more than 2 days can leave you with irrecoverable losses within a short time.
Note that, trading and investing in cryptocurrencies is highly risky. The assets are unpredictable and you must conduct independent research on assets to guide you on your decisions.
❌ It’s not different from Other Altcoins as a follower of Bitcoin
It is a known fact across the crypto finance space that alternate coins (cryptocurrencies created after Bitcoin) follow in the trading patterns of the parent crypto. Many thought a huge leap in the price of ICP could be sustained only for the crypto trading asset to succumb to the same fate as other altcoins due to unfavourable news about BTC.
In May 2021 Elon Musk announced via his Twitter Handle that Tesla wouldn’t be accepting Bitcoin as an option of payment for automobiles. He asserted that this decision was a result of the energy emissions problems associated with the use of cryptocurrencies.
Soon after the announcement, BTC plunged from an opening of $56,714.53 on 12th May 2021 to a closing price of $49,150.53. BTC lost 13.337% of its price in a few hours. Internet Computer (ICP) also opened at $366.95 on 12th May 2021 and by the close of the day was exchanging hands for $255.49. ICP lost 43.63% of its opening day price.
This is not all good for a cryptocurrency that has gained the trust of several traders and investors. Several analysts may argue that it is still a relatively younger cryptocurrency that needs to be given time to adapt to the trends of the crypto finance space.
With that said, it would be great if ICP could find some form of independence since its bringing a relatively unique innovation to the decentralized finance market. Since ICP is moving along the paths of BTC, a piece of huge unfavourable news surrounding BTC could see the cryptocurrency plunge into new high lows which may see your hard-earned money in investments downed the drain.
❌ Questions Marks around decentralization
Although the Internet Computer may be decentralized, it is not like the other blockchains which allow permissionless transactions. The Internet Computer is not exactly permissionless. This is because it did not follow the conventional route of starting with consumer hardware. Instead, ICP zoomed straight into data centers for its project. As per information retrieved from Coindesk, the problem is “Those data centers can participate only if they have been voted in by network governance (holders who have staked the ICP token) and attained an identity on the network.” Considering the aim of the technology coupled with the high hopes associated with its extensive decentralization, this feature does not help ICPs cause in opening up governance decisions to just a select few (relevant assets or significant individuals).
❌ The Digital Token’s Future Is Relying on Possibilities, Not Certainties
Cryptocurrencies such as Bitcoin, Dogecoin, Binance Coin, and Ether have been in the system for a long time having been tried and tested as per the blockchains powering their prices.
In this case, there are too many “could” which means possibilities. Until the protocol runs fully-fledged social media applications as well as decentralized finance applications which have billions of dollars locked in, you can only invest in the cryptocurrency based on the fear of not missing out (FOMO) and not strong fundamentals. This is the primary reason why you should invest in Internet Computer only if you can afford to lose your investments.
You may also choose to diversify your portfolio with other assets such as metals, commodities, or crypto stocks (stocks with links to the crypto market such as Tesla, Nvidia, and Shopify). This could balance any losses that may come your way.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
So, Is Internet Computer A Good Investment?
Due to the crypto boom of 2021 and FOMO, most novice investors are failing to take into account several important factors. Among others, the two significant factors to consider as to whether Internet Computer ICP is a good investment is a risk versus reward. Do the potential rewards in investing in Internet Computer exceed the possible consequences of the risks?
The Internet Computer certainly has strong factors which make it a buy. The founder and his team have developed an innovative technological solution that can improve several aspects of the internet.
With that said, ICP is relatively new to the blockchain and crypto trading space. It’s some distance behind its main rivals in the possibilities of blockchain Ethereum and Bitcoin in terms of price.
Aside from this, it’s a younger blockchain gaining traction online and not the most popular technology for blockchain loyalists.
On the other hand, the Internet Computer could become the fastest protocol and cryptocurrency to become accepted in the mainstream. This is due to its vote of confidence by Polychain Capital, Greycroft Partners, Scalar Capital, and cryptocurrency exchange Coinbase. Dfinity Foundation received a strong vote of confidence from Coinbase.
The exchange announced that the novel token of the protocol, ICP, would be immediately open to deposit on Coinbase Pro with trading to follow once liquidity conditions have been met. This explains the millions and billions of dollars in volume the asset has experienced in the last 4 days.
The current price of ICP is a bit far from the investment budget of novice traders and investors but it’s a good opportunity for established investors to add another asset with a huge potential to their portfolio of investments.
To put it simply, Internet Computer is a risky investment which has lots of potential rewards in store.
Such potential reward is what has made experts at Digital Coin Price zoom in on the future of ICP. The experts forecast a price of $26.03 for Internet Computer by the end of 2022 for the short term and $81.94 to close out 2029 in the long term.
Therefore, the real Internet Computer investing question is, will ICP investments work? With a dedication towards strong fundamental and technical analysis on the asset in question, now could be the time to invest in Internet Computer. This could help avoid losses of potential gains in the future.
Will Internet Computer Be A Millionaire-Maker?
Internet Computer (ICP) could be a millionaire-maker if it crosses several milestones before the end of 2022. You should remember that the digital asset has a market capitalization of $8 billion. Such a figure is poised to increase substantially once it starts running decentralized applications. Additionally, if more developers start to opt for ICP due to its potential to override any censorship that may come to oppose DeFi in the future, the price of the novel token could rise.
Another essential factor is its finite supply. If the developers do not add more ICPs to its total supply, scarcity would set in. Once this happens, the asset could command a relatively higher price than cryptocurrencies of numerous smart contract chains.
Investing in Internet Computer can make you a millionaire in this practical way. Experts at Digital Coin Price estimate Internet Computer ICP to test $40 in 2026 and settle at $39.76 by the end of that year.
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Will Internet Computer (ICP) Reach $1,000?
Experts had agreed on the possibility in ICP early days, however after it dropped in prices since last July, it seems unlikely that this goal will be reached earlier than 2030.
What Will Internet Computer ICP Be Worth in 2025?
According to analysts at Digital Coin Price, Internet Computer could have a trading price of $34.6 by the end of the year.
What Will ICP Be Worth in 10 Years?
According to CoinPriceForecast, ICP will trade at $74.39 in 10 years time.