QTUM Cryptocurrency to Get Pass $55 Soon
Before we look at QTUM cryptocurrency 2018 price prediction, investors have to first understand how this blockchain works.
So what is QTUM?
Qtum is a blockchain cryptocurrency company based in China. It launched the QTUM blockchain in September, 2017. The protocol of its blockchain borrows from both the Ethereum and the Bitcoin blockchains. It uses the smart contracts technology from Ethereum and also uses the Unspent Transaction Output (UTXO) model of transaction of Bitcoin.
In addition to the two features, the Qtum also uses Ethereum’s proof-of-stake consensus tool in verifying transactions.
It is mainly geared towards the business world with an intention of linking blockchain networks to business structures. It does so by having its ecosystem able to accommodate small business applications that are well attuned to other blockchains. This is contrary to some blockchains like Ethereum that uses dapp ecosystem to foster common games like Cryptokitties.
Main features of the QTUM blockchain
· Block time
Qtum transactions take 3 minutes to get rewards.
· Unspent Transaction Output (UTXO)
This is also referred to as output satoshi.
In a simple explanation, UTXO is like having money that is unused. For example, let’s say I want to write a check for X. I will have to write the amount which in our case will be written in satoshi denominations. After that, it will require to have the recipient, in our case we shall use a key (public key) which is the name of X. Once the check is processed by the bank, X will have something to spend. But before the money from the check is spent, X will be having some unused money, this unused money is what can be referred to as UTXO since it represent the output of a transaction which is not spent and it will be in satoshi denominations.
Now when we get back to the QTUM wallets, the wallet recognizes the unused tokens in satoshi denomination and thus as UTXOs. When transacting, the wallets select and combine the UTXOs in accordance to the amount that we want to transact. Of course after the transaction, the wallet will remain with a new number of UTXOs while the recipient’s address will be having the number of UTXOs transferred.
· Smart contracts
By using smart contracts, users can relax since transactions can be set to go on automatically.
· Proof-of-Stake mechanism
This is a mechanism which tries to ensure that there is a consensus and no double spending especially in rewards after mining. It does so by setting a group of validators who propose and vote in turns to choose the miner who will mine the next block. The weight of the vote of each validator is measured in terms of the deposit they have made.
· Lite wallets
Qtum blockchain supports the SPV protocol, which enables the smart contracts to be executed from lite wallets. The lite wallets then allow syncing with different devices like smartphones.
2018 QTUM Cryptocurrency price Forecast
With the shortest time on the cryptocurrency markets, the QTUM has been performing greatly. The only funny thing being that the price short up very high reaching an all-time high of $202 per token. A price it has never attained again. Actually, it has had an average value of $15 till mid-December 2017 when it assumed a
The market has however had a slight retracement from 6th to 16th January, 2018. Actually, this has been the second largest pullback/retracement since the one that happened after its release.
But if you look closely you shall realize that the QTUM market is very easily analyzed using candlestick patterns. For instance, if you look at the chart below, you will realize that after every hammer formation there is a retracement which is stopped and reversed by formation of a hammer too.
And as per now, there was a bullish hammer formed on 17th, Jan, 2018 from when the retracement seems to have come to an end. If the prices break through the $55 resistance level, investors can be sure of a stronger bullish trend which may want to test the all-time high of $202 a day after its launch.
Investors should mostly watch what happens within the 1st quarter of 2018 since to see if the $55 resistance level will be broken or there shall be formation of another hammer before it is reached.