Nano (Nano) is one of the most advanced cryptocurrencies in the market today. It runs on DAG technology, which makes it infinitely scalable. It is more like a next-gen crypto, in a market that is still struggling with issues like scalability. But like most other cryptos, it has its weaknesses that might affect its prospects, at least in the short-term. To help you make a decision on whether to invest in Nano (Nano) or not, here are a few pros and cons to this coin.
One of the advantages that Nano (Nano) has as an investment is its efficiency for transactions. As mentioned above, Nano is one of the most advanced payment cryptos out there. It is fast, highly scalable, and best of all, it is free. This means that as a payments cryptocurrency, Nano (Nano) has the opportunity to grow. That’s because, compared to other payment methods, both crypto and otherwise, a rational merchant would go for Nano (Nano). In essence, for an investor looking at crypto for the long-run, Nano (Nano) makes for a good buy. It has a realistic chance of making it big in payments, and could trounce payment methods like Paypal in the future.
Nano’s fundamentals are also supported by the fact that it has a very low coin supply. Nano (Nano) has a coin supply of slightly above 133 million coins. This places it in a good position to gain in value faster than the other altcoins that have billions of coins in circulation. In a bull market, Nano (Nano) investors would be chasing a limited number of coins and the buying pressure would see the value of Nano (Nano) rise quite fast. That’s a good enough reason to be invested in Nano (Nano) at this point.
Like all other cryptos, Nano (Nano) has its drawbacks that could see it stagnate in the long-run. One of the biggest risks that Nano (Nano) faces is that it could be lost in the sea of other payments cryptos. As the crypto bear sustains, the 2017 hype will eventually die out, and utility will be the key driver to growth. While this is a good thing, money could consolidate around a few well-known payment cryptos, regardless of whether they are the most efficient or not. This could starve the rest of volumes.
One factor that could trigger such a scenario is the entry of institutional money into the market. If institutional money goes for bitcoin (BTC) and a few top 10 altcoins, retail money would follow it, and this could pose a risk to the other cryptos. No matter how technically good a crypto is, if it doesn’t have volumes, it would ultimately die. History is full of good technologies that died, and inferior tech thrived due to wider acceptance.
Armed with this information, an investor can make an informed decision on whether to invest in Nano (Nano) or not. The key point to remember is that all cryptos carry risk, and responsible investing is the key to winning.