Lisk’s competitive advantages
2) Sidechains. Lisk aims to let programmers hit the ground running. It’s “sidechains” will give coders the ability to launch their own tokens and seamlessly integrate them with the mainchain (think Ethereum’s ERC-20 tokens). Rather than running on the main chain (like Ethereum), though, Lisk Dapps will run on a sidechain making them less prone to bogging down the network.
3) Treasure trove. Lisk’s team collected more than 14,000 BTC and more than 80 million Crypti (XCR) during its 2016 ICO. That was worth $5.6 million at the time. It’s unclear when (or how much) of that BTC has already been converted to fiat to fund operations, but the team presumably has plenty enough cash to continue development. The BTC alone would be worth $84 million today.
The Oracle’s Lisk price prediction/target
In Goldman Sachs’ 2018 Investment Outlook, the firm argues the bitcoin and cryptocurrency “mania” already dwarfs the famous Dutch “tulipmania” in the 1600s and the March 2000 dot-com bubble.
At the very end of the piece, they include this gem:
At the peak of the dot-com bubble in March 2000, the combined market capitalization of Nasdaq and S&P 500 information technology stocks was 101% of U.S. GDP and 31% of world GDP. The aggregate market capitalization of cryptocurrencies is 3.2% of U.S. GDP and 0.8% of world GDP.
If there’s one thing I’ve learned in more than a decade of investing in various assets, it’s this: markets go higher and fall lower than we generally imagine they will. While I don’t see cryptocurrencies ever hitting 101% of the U.S.’s GDP, I still envision at least one more extraordinary rise in prices for cryptocurrency.
Why? Because the public still thinks of crypto as a currency and a currency alone. The average investor hasn’t heard of ethereum yet (not to mention interesting projects like Golem, Gridcoin, Waves and more than 1,000 others). 2017 was the year of bitcoin. 2018 will be the year of blockchain.
My personal target is a $2 trillion market cap for all cryptocurrencies. If we hit that number, we’d be at just 10% of the $20 trillion U.S. GDP. Under that scenario (assuming current coin ratios stay the same), the price of Lisk (LSK) would be around $44.32 (assuming the markets hit 7.9x crypto’s current market cap). If we hit 50% of the U.S. GDP, we’d be at $224.40 per LSK. At 101% of U.S. GDP, we’d be looking at a future Lisk price of $448.80. During its peak over the winter, each LSK hit $38.40.
I don’t disagree with Goldman. We’re in the midst of an extraordinary bubble. I just disagree that we’ve already seen the top.
Side note: The U.S. debt-to-GDP ratio for Q4 2017 stood at 104 percent. Perhaps the true bubble we’re witnessing is government debt.
Disclaimer: This post is does not account for currency inflation. Price predictions were calculated as if the total coin supply were capped at the time of publication.