NEO bills itself as “a non-profit community-based blockchain project that utilizes blockchain technology and digital identity to digitize assets, to automate the management of digital assets using smart contracts, and to realize a ‘smart economy’ with a distributed network.”
NEO’s competitive advantages
1) The Asian Ethereum? A smart contract platform, NEO was originally founded in 2014 (the same year as Ethereum). Both cryptocurrencies are trying to emerge as the leading smart contract platform. One key distinction: while Ethereum has its own coding language (Solidity), NEO runs a virtual machine so coders can write in languages they already know (C#, Java, Python, etc.). That should speed adoption.
2) Speed. NEO currently supports 1,000 transactions per second (with the ability to ramp that up). That dwarfs Ethereum’s 15 or so transactions per second and bitcoin’s 3.
3) Partnerships. NEO founder Da Hongfei has already fostered some partnerships with the biggest companies in the world through his NEO offshoot Onchain. Onchain’s working with Microsoft China on legal chains (digitizing and securing signatures via blockchain technology), Alibaba on an email certification service for Ali Cloud and the Chinese government on public services and digital identity .
The Oracle’s NEO 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 NEO (NEO) would be around $530.48. If we hit 50% of the U.S. GDP, we’d be at $2,680.32 per NEO. At 101% of U.S. GDP, we’d be looking at a future NEO price of $5,360.64.
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.
Caution: 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.