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Stellar Lumens or Ethereum — Which One Is the Best Investment Opportunity?

In general, investing in cryptocurrency has proven to be a highly rewarding activity.

The market is booming, and there’s a lot to gain. The starkest examples of this are big coins like Bitcoin and Ether, which have seen enormous gains in the past year. If you had bought a single Bitcoin early last year, you’d now be about $8000 richer (at the time of writing).

These giant coins have sucked in much of the media attention, and present relatively ‘safe’ investments for now. However, other coins in the space offer much more interesting opportunities.

Examples include coins like Stellar Lumens, which is aimed at providing smooth and easy payments across international borders. It has a real, specific use case, something many other cryptocurrencies lack.

Of course, big coins have their advantages too. This article will take a look at Ethereum, one of the biggest names in crypto, and how it compares to Stellar as an investment opportunity.

First, let’s break down why Stellar is so exciting.

Stellar — focused and clear

Crypto giants like Bitcoin are clearly incredible examples of technology, which have generated enormous amounts of attention and hype.

Stellar might not be quite as famous as Bitcoin, but it does have some clear advantages over it.

While Bitcoin works as a currency, it doesn’t have many specific use cases beyond that. Stellar, on the other hand, has a very clear and specific purpose. Its goal is to make payments across international borders more streamlined and affordable.

This taps into a massive market. Two billion people in the world are unbanked, seeking some kind of alternative for handling their money to traditional financial institutions. In the developing world especially there’s a massive demand for new ways to send and receive money that doesn’t involve relying on volatile local currencies and unstable banking systems.

And it’s not just the third world where Stellar could make a big impact. All over the planet there’s a big and growing demand for easier international payment methods. Lots of people have financial interests abroad, or just like to buy things from overseas sellers.

People everywhere are craving a simple and reliable way to send money abroad. This is possible with existing platforms like Bitcoin and Ethereum, but these aren’t perfect.

It isn’t their main purpose, so naturally, they have some flaws. These include high waiting times and costs when the network is particularly busy, which isn’t exactly convenient for users.

Stellar’s efficiency and reliability in this area are its strengths, and make it a great investment opportunity.

Ethereum — established and experienced

Ethereum has one big advantage over Stellar, which is its far superior size. While Stellar has a market cap of $8.3 billion at the time of writing, Ethereum boasts a staggering $91.7 billion.

It’s more well-known, has a larger base of users, and is seen as a more stable and safe investment in general. Ethereum is widely used as a platform for building new dApps and blockchain-based platforms.

Most new ICOs turn to the Ethereum blockchain to form the building blocks of their software. It’s quick, reliable, and can handle enormous volumes of transactions. Ethereum is tried and tested, and the general consensus is that it’s likely to stick around for a long time to come.

It isn’t without its problems, though. As mentioned above, its network can become clogged at times when activity is high. This can result in high fees and long waiting times, which is a real source of annoyance for users.

Which one is best to invest in?

Both of these currencies present good opportunities for investment, for different reasons. Ethereum is a safe bet — it’s rising fairly reliably in value, has a high market cap, and a big customer base. Its solid resumé and good track record make it a wise choice for any investor.

Stellar is less established, but it offers a new and exciting use case. It also promises quick, advanced technology and a very exciting potential for growth. The xlm price is currently $0.48-0.50 and rising.

In fact, some ICOs, like $39 million Mobius, have actually turned to Stellar over Ethereum to build their software. This is a clear example of companies investing heavily in Stellar’s technology over the alternatives.

Ultimately both are good opportunities for investors, for different reasons, and both have extremely promising futures.

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An upcoming stable coin project featuring a loaning system has bagged a $15 million investment from Andreessen Horowitz. VC Firm to Govern MakerDAO The venture capital firm, with a history of high profile investments into crypto projects, bought 6 percent of the total MKR supply through its $300m crypto fund, a16z crypto. By doing so, the US firm has got the rights to govern the Maker network, which includes MakerDAO, the stable coin firm, and the Dai Credit System as it becomes the first DAO-enabled stable coin project. The investment also marks a16z’s very first strategic purchase in the crypto industry. Katie Haun, general partner at a16z, believes MakerDAO will provide a compelling opportunity to their fund in the crypto-space. The former federal prosecutor, who is also renowned for having led the investigation against Mt Gox and Silk Road, said in her press statement: “MakerDAO’s technology, ecosystem and talent have put theory into action to deliver a decentralized stablecoin that we believe will help drive the future of the crypto economy.” For MakerDAO, a $15 million investment means more funds to develop their Dai Credit System. Not to be confused with MKR, which is a proof-of-stake token, the Dai Credit System uses a specialized stablecoin called Dai. The Dai token is soft-pegged to the US Dollar and is created during a seemingly unique loaning process. “Dai is created when asset owners deposit collateral to secure a loan, which is denominated in Dai stablecoin […] This allows owners of illiquid or unstable assets that wish to retain those assets over the long term to gain short-term liquidity, i.e., an ability to spend value otherwise locked in those assets while still retaining those assets,” stated Haun. For now, borrowers will be able to use ETH token as collateral to secure a loan from MakerDAO. The team has also launched a multi-collateral DAI system on the Kovan Testnet. It would allow borrowers to collateralize a diverse basket of crypto-assets in addition to ETH. The Maker network, in general, makes use of a set of autonomous smart contracts to coordinate the loan system. That said, anybody with an internet connection and with some collateral to spare can create Dai stablecoins, without needing an intermediary. “With an exciting fall full of announcements, MakerDAO is making its mark as a vanguard of blockchain technology. The team looks forward to continued product excellence and rapid Dai adoption in the coming months,” the Maker team said as it signed off. Image from Shutterstock The post Andreessen Horowitz’s $300m Crypto Fund Buys Stakes in Stablecoin Project appeared first on NewsBTC.

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