NEM Coin Going To Be Bigger This Year, Thanks To Petro (PTR)
The consensus among industry watchers is that NEM (XEM) is a cryptocurrency that has the potential to go further with wider adoption.
Sometimes it feels like the community around cryptocurrency is just taking too long to notice this or quite unbelievably, that this cryptocurrency is undervalued.
However, at the moment, XEM doesn’t make for good reading. After having hit its all-time high of $1.90 on 4 January 2018, NEM coin was one of the hard hit when prices tumbled. It dropped all the way to $0.53 on February 5. Today XEM is trading at between $0.41 and $0.44. Its market cap has dropped to $3.9 billion.
So we could say that this is a time when the platform needed an injection of some good news to bolster its market value. First, the NEM team is in the middle of an extended tour of world cities to popularize blockchain technology. Cities like Miami, Buenos Aires, Milan, and Melbourne are on the list of what we hoped would double up as an Ad for NEM.
Not every kind of publicity is good publicity
But then after it almost emerged that Maduro’s government were leaning towards Ethereum, the shocker came: it was NEM after all.
Did I say that NEM needed some kind of jack lift to stem the drop? We could say that that happened when Venezuela chose to use the NEM blockchain for their national currency. It was a big statement, but one that seems to be generating a lot of heat within the crypto sphere.
I don’t know if it has to do with the Petro deal or other market factors, but I have just noticed that the price of XEM is up by +0.40%. Too small, but that is a movement into green territory.
NEM (XEM) distances from politics
Right after the revelation that Venezuela had indeed chosen NEM over Ethereum; the NEM team tweeted that they did not have any political endorsements and that the NEM technology was free. It meant that anyone could use it to launch their crypto product.
NEM is much smaller than Ethereum and when the Petro whitepaper initially indicated that the Petro ICO would exist as an ERC20 token standard on Ethereum’s network, not much criticism was voiced. This has led to some people wondering whether the heat witnessed is only due to the choice of NEM or there are other underlying concerns.
Venezuela, of course, has issues; especially the concern that the country was dead broke. Speculation is that the country may even pull a shocker once more and announce it is withdrawing from the ICO altogether. If this were to happen, NEM will definitely plummet.
Petro (PTR) could be big for NEM
The flip side of the political implication is the belief by many that this deal proves that NEM’s platform is ready for real-world use. Instead of it being NEM endorsing Venezuela, it’s the other way round. A country has put faith in NEM’s blockchain to have the most valuable commodity in the country pegged to cryptocurrency.
It could, of course, boil down to just a politically motivated cash grab by the under-pressure government. That and more, but for now NEM is the first blockchain to officially launch a national currency. What if other countries took the cue and flocked to NEM? How big can that get for the NEM devs?
Petro (PTR) will be backed by Venezuela’s oil reserves and the public will use PTR to pay taxes, fees, and for daily purchases.
If the deal works, then NEM holders should be prepared for a price boost, and possibly a rally.
Can the NEM blockchain deliver for Venezuela?
The question is whether the NEM blockchain is able to handle the expected spike in transactions on its network. it has several advantages over the leading cryptocurrencies. The NEM network is at the moment fast and with the release Catapult, transaction time will really be top.
At the moment the NEM network is capable of handling 120 transactions every minute. With the launch of Catapult, it will be able to transact at higher speeds of up to 4,000 transactions per second.
In comparison, Bitcoin currently handles roughly seven transactions per second, while Ethereum’s is about 20 transactions per second. So, if NEM launches Catapult to work with its Mijin protocol, it could comfortably handle the increased volumes.
I don’t see anything wrong with the Petro token unless there is a whole bunch of insincerity from the Venezuela leadership. The PTR token will give the NEM platform much-needed impetus that is only good for a cryptocurrency looking for real use adoption.
My only concern would be how NEM (XEM) itself handles the situation to avoid antagonizing XEM holders. But if I have to advise any investor who already holds XEM, it would be this: Don’t sell; NEM is going to be bigger this year.