2021 was an amazing year for many cryptocurrencies. Like Bitcoin, some experienced major upswings and downswings. They yielded huge profits to lucky investors, even as some investors and traders have lost significant money. The secret is knowing the right coin to buy and the right time to buy or sell.
We’ve also seen that buying a cryptocurrency as an asset and leaving it for several years can bring massive profits. There are so many testimonies out there, which is why we are witnessing a rise in cryptocurrency activities around the world. But you need to be very careful when trading or investing, especially when you are considering major long-term investments.
Tezos is one of the cryptocurrencies that have caught the attention of many. Are you considering joining the bandwagon to invest in the coin? It is important that you learn so much about it that you can decide if it is the right long-term investment for you. We will help you do that right here.
To know a digital asset that can fetch you a lot of money in ten years’ time, you need to look at its past, its present, and its future. In this article, we will do that with Tezos. We will discuss every important thing you need to know about the coin.
By carefully going through the information here, you will learn a lot to make an informed decision about the long-term future of Tezos as an investment option. Again, we will encourage you to go through the entire post carefully to gain meaningful insight in the end.
Contents:
- What Is Tezos?
- A Brief History of Tezos
- Is Tezos A Good Investment?
- Price History of Tezos
- Tezos Price Predictions
- Why You May Want To Invest In Tezos
- Why You Should Think Twice Before Investing In Tezos
- Should You Play the Long-Term Game with Tezos XTZ?
- Investing In Tezos? Do It the Smart Way
What Is Tezos?
Tezos is a unique blockchain platform that supports the deployment of smart contracts and the execution of peer-to-peer transactions. It is an innovative blockchain-based platform that also supports decentralized apps (dApps). According to its official web page, it is “an open-source blockchain protocol for assets and applications backed by a global community of validators, researchers, and builders.
As a smart contract platform, Tezos is similar to Ethereum in many ways. It functions through a process known as "on-chain governance," which allows the implementation of changes or upgrades to the blockchain without resorting to hard forks. This pretty much ensures that the network will remain one for the foreseeable future. It also shows that the network will keep getting better with time.
“On-chain governance” allows everyone who owns the Tezos token to be part of the decision-making process. Everyone is allowed to vote when there is a proposal to change either the platform’s rule or any action undertaken on the platform. Once consensus is reached through the voting procedures, the platform automatically initiates the update or enforces the new rule.
Tezos is a completely decentralized network, which makes it a true cryptocurrency platform with no resemblance to a traditional banking institution. The network also has advanced technology that sets it further apart.
Of course, Tezos has a native currency that facilitates transactions in its ecosystem and serves as a digital asset for investors. The coin is called Tex or XTZ. It is also called Tezzie. Remember that the crypto coin is the primary focus of traders and investors. The performance of the network ecosystem is important, but the price of the coin is what determines the viability of a normal investment.
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A Brief History Of Tezos
Tezos was first proposed by Arthur Breitman and his wife, Kathleen, in 2014, using a pseudonym (L. M. Goodman). The white paper for the project stressed that the network is a self-amending crypto-ledger. The idea was positively received, but it took the founders about four more years to launch the platform.
Tezos was funded in 2017 through one of the most successful Initial Coin Offerings (ICOs) of all time. In thirteen days, the Tezos Foundation raised $232 million to execute the project. A series of lawsuits and in-house drama delayed the project, but it finally took off in 2018.
After a successful launch, Tezos started sharing grants and training opportunities to attract some of the best brains and crypto enthusiasts. Over the years, it has implemented several protocol amendments. Some of the most important amendments include making smart contract development more effective and introducing staking in the network.
Due to its unique, promising features, unique governance system, and public image, Tezos has been able to catch the attention of many leading organizations and get some of them on board. It currently works with many of these organizations to support the digitalization of capital markets.
More About Tez XTZ
As mentioned already, the native currency of the Tezos ecosystem is known as Tez, Tezzie, or simply XTZ. Unlike many cryptocurrencies, it is not mined. The network utilizes a proof-of-stake mechanism, and users are rewarded for participating in the development process of the network.
Tez is not your regular cryptocurrency – it is much more than that. While XTZ can be traded and used as a payment solution, it is also used primarily to run the blockchain. This has elicited interest in the coin from regular traders and core cryptocurrency investors.
Tez can be broken down into a million parts. One-millionth of a token is called a "Mutez." Despite the initial setbacks the platform suffered after its ICO, XTZ has grown significantly in just three years of existence. It even recovered quickly from the bearish market caused by the coronavirus pandemic to become one of the high-ranking cryptocurrencies in terms of market capitalization.
Is Tezos A Good Investment?
There are many positive things about Tezos, even though the foundation has seen several rocky days in the past. But to determine whether it is a good investment option, you need to consider its past, present, and future.
As mentioned already, the price of Tez is one of the most important things investors must consider when deciding whether XTZ is the right asset to invest in. In that regard, we will discuss the price history of the coin, its current position, as well as future predictions from authority websites.
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Price History Of Tezos
As hinted earlier, The Tezos Foundation ran into troubles after a successful ICO. The launch of the coin was delayed until 2018. When the coin eventually got to exchanges, it was selling for around $3. On July 2nd, it opened at $1.950, reached a high of $4.180 and a surprising low of $1.100. It eventually closed the day at $2.3200.
On October 1st, 2018, XTZ opened at $1.43, reached $1.45, and closed the day at $1.32. By October 29th, it was still selling for about $1.35. On the last day of the year 2018, XTZ opened the day at $0.498466, recorded a low of $0.460394, reached a high of $0.499458, and closed the day at $0.484338. The end of the year was somewhat terrible for the coin as it reached an all-time low of $0.3146 on December 7th.
2019 did not start too well for XTZ. By January 7th, the coin reached $0.505, but the downswing started soon after that. By February 4th, it has dropped to a low of $0.3598. Tezos started gaining value by March. On April 15th, the coin reached a high of $1.400. By May 13th, it has reached $1.830.
Towards the end of 2019, XTZ dropped significantly. On the last day of September, it opened at $0.888, recorded a low of $0.8539, reached a high of $0.9975, and closed the day at $0.876. It improved towards the end of the year, reaching $1.833 in December.
Tezos growth continued into 2020. In January, it was worth around $1.658, and by February, it averaged $2.74260 per token. It dropped to about $1.6138 in March but rose again to $2.7546 in April. The next drop was witnessed in June when the coin averaged $2.3605, but it quickly bounced back in July. By August, it reached $4.3198.
The price of Tezos continued to fluctuate until December, when it opened at $2.4933, recorded a low of $1.8659, and closed at $2.01046.
Recent Performance And Current Position Of Tezos
2021 was relatively good for Tezos. The coin opened the year at $2.01046 but recorded a high of $3.3441. The price continued on an upward trend until May, when it reached an all-time high of $8.40. It dropped sharply in May, and by June, it opened at $3.5829. The average price in June is $2.9146, according to data from investing.com. Tezos' price rose in September to reach a new high of $9.18 on October 4th 2021. XTZ ended 2021 trading at a price of $4.35.
At the time of writing this piece, Tezos XTZ's price is $3.55, according to Coin Market Cap. In the last 24-hours, it has recorded a low of $3.43 and reached a high of $4.08.
Tezos’s market capitalization at the time of writing is $3 billion, making it the number 45th ranked cryptocurrency in the world in terms of market capitalization. However, the fully diluted market capitalization stands at $3.15 billion.
The circulating supply of Tezos stands at 875,090,256.46 XTZ, and the total supply is expected to be 903,330,934 XTZ.
Tezos Price Predictions
To have an idea of what Tezos XTZ will be worth in the future, we need to look at the predictions from authority websites.
According to Wallet Investor, Tezos's price will go up slowly but steadily. Their latest prediction shows that the coin will reach $7.13 in the next year. They are also predicting that the coin will be worth around $19.29 in the next five years (2027).
Digital Coin Price’s prediction for Tezos is very similar to that of Wallet Investor. They predict that the coin can finish 2022 at $4.79. They also believe that the coin can rise steadily to $6.24, $7, and $8.32 in 2023, 2024, and 2025 respectively. In the next five years (2027), they predict that the coin will be worth $9.43 and rise to $12.04 in 2028.
Trading Beasts is not as positive as other sites about the future of Tezos. Their latest prediction shows that the coin can reach a maximum of $4.63 in December 2022. They also predict that the coin will average $4.62 in January 2023 and $4.30 in December. They also expect the average price of the coin in December 2025 to be $5.73.
Long Forecast predicts that Tezos will be worth around $2.85 come December 2022. The site also predicts that XTZ will be worth $3.47 by December 2023 and $5.38 by December 2024. By 2025, they predict that the coin will be worth around $4.56. Clearly, the site isn’t a big fan of the coin.
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Where Will Tezos Be In The Next Ten Years?
Tezos has a lot going for it. At the same time, the network and its coin have seen several setbacks, including lawsuits and settlements. It has also been a really volatile cryptocurrency, so it is a little difficult to predict how it will fare in the future.
Ten years is a long time, so we can’t say for sure what will become of the coin. The impressive features of the network can attract people, but the sustainability of the platform will depend on how well the community will upgrade it. At the moment, we expect that the coin will struggle to compete with Ethereum, Ripples, and similar smart contract cryptocurrencies.
Why You May Want To Invest In Tezos
There are impressive things about Tezos, and it is important that we discuss them briefly to help you decide if it is the right asset for you. Here are some of the major reasons you may want to invest in Tezos:
Tezos Is More Than a Conventional Cryptocurrency
Tezos is based on smart contracts and is known to be highly scalable. It is an innovative blockchain that can be used in all kinds of businesses, including gaming. The potentials are just too wide, and that alone breeds confidence in the coin.
It Is a Self-Amending Blockchain
Tezos founders understood that it is impossible to get a perfect platform, so they made it a self-amending blockchain. The beauty of this is that it will always prevent the blockchain from being forked. Once the community reaches a consensus on a planned change or upgrade, the blockchain will automatically implement the change or upgrade without splitting.
Baking Is an Innovative Process That Rewards Investors
Tezos has an innovative process known as baking which rewards core investors. Baking is a multi-stage process that results in signing and publishing blocks to the blockchain. It requires users to make stake XTZ and earn rewards in XTZ from the process.
It is a Secured Smart Contract Platform
Security is an important factor in blockchain technology and the cryptocurrency universe, and Tezos doesn’t have any problem in this regard. It utilizes a language called Michelson to formally verify smart contracts and enhance the security of the entire network.
It Has Attracted High-Profile Investors
When Tezos burst onto the scene, it caught the attention of many top investors. The controversies after the ICO caused a lot of troubles for the network and its coin, but it has become a respectable asset valued among investors. Polychain Capital is one of the major investors, and the network has entered into partnerships with some major financial institutions, including Banco BTG Pactual.
Read More: Can Tezos Be A Millionaire Maker?
Why You Should Think Twice Before Investing In Tezos
While there are several reasons to invest in Tezos, there are also several reasons you may want to think twice before making a meaningful investment on the platform. Here are some of the prominent drawbacks you should consider:
Tezos Had a Terribly Messy Beginning, Even After a Successful ICO
After completing a successful initial coin offering, Tezos encountered several drawbacks that tainted the image of the network, even before it started operations. The series of disagreements and lawsuits can still have an effect on the long-term performance of the token.
Tezos Is Relatively New
Though the project was initiated in 2014, Tezos was only launched about four years ago. As a young ledger, the platform still has years to prove itself. Again, there is the possibility that things could go wrong and affect the price of the coin so much.
Tezos Popularity and Adoption Has Decreased
After several controversies in the early days, Tezos lost popularity. Even some of the top-shots who considered investing in the platform started treating it as an immature platform. The internal issues are still affecting the reputation of the coin and its adoption.
Tezos XTZ Faces Competition from Several Other
XTZ still has a long way to go in terms of everyday use, and it is competing with other smart contracts cryptocurrencies like Ethereum and Ripples, which have almost conquered the market. It is possible that it can get pushed aside by these bigger and more popular platforms, despite its impressive technology.
Should You Play The Long-Term Game With Tezos XTZ?
While there are some positive things about Tezos, you need to consider its likelihood of competing with similar platforms if you want to invest in the long term. It is possible that Tezos price may rise significantly in the future, but its future is also a little daisy.
XTZ can be great for short-term investments, but it is risky if you are counting on the coin to gain a lot of value in ten years’ time. If you must invest, we will encourage you to monitor the market closely so that you can know the best time to sell.