“Should I invest in Bitcoin?” is a question I hear quite often.
The first thing I tell investors is to look at other cryptocurrencies: Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Monero (XMR), the list goes on and on. There are literally hundreds of alternatives to Bitcoin (BTC).
And, blasphemous though this may sound to those who pray at the altar of Bitcoin, some of these currencies are better than Bitcoin. They took what worked, tweaked what didn’t, and emerged with potentially superior technology.
In fact, this report will explore one of these unappreciated cryptocurrencies: NEM (XEM).
NEM is the seventh-largest cryptocurrency by market cap, but you wouldn’t know it by reading Forbes or Fortune. It is relatively unknown outside of crypto circles.
There’s also confusion around the currency’s name. It is called NEM, but it trades under the symbol “XEM.” Oh, and perhaps I forgot to mention: the XEM price is just $0.208119.
Before we make an official XEM price prediction for 2018, perhaps it’s best to answer some basic questions, like “What is NEM?” and “What separates it from Bitcoin?” Then we can get to the juicy upside potential.
What is the XEM Cryptocurrency?
The elevator pitch for NEM is simple: 1) Take what Bitcoin is doing for payments, and 2) apply it to all technological infrastructure.
It is very similar to the work Ethereum is doing with “smart contracts,” except that NEM bills its features as “smart assets.” Here are a few potential use-cases:
- Health records
- Supply chains
- Stock ownership
- Royalty payments
- Legal records
According to the company’s marketing materials, a handful of businesses have already adopted NEM. “Tests across millions of accounts have demonstrated why it is one of the best performing systems in the industry,” reads one of their presentations.
Part of that is just bluster. However, there are some intriguing aspects to NEM, such as its API interface. Without getting too technical, let me quickly explain what this API does.
Imagine that you are running a Fortune 500 company. You hear about blockchain–how it can increase security, lower costs, improve efficiency–and you decide to migrate some portion of your digital infrastructure.
In most cases, you’d need to hire a special programmer. Someone who understands the coding language of “smart contracts.” But then you discover NEM.
Your software team eagerly explains to you that NEM allows them to code in any language. There’s no need to tear everything down, no need to build it back up from scratch. It works with Java, C++, whatever they want, really.
“How is that possible?” you ask.
“Easy,” they answer. “NEM has a magic API.”
Should You Invest in NEM (XEM)?
NEM is barely two years old (at the time this article went to press), but it’s already a highly profitable investment. For instance, the XEM price increased 5,950% year-to-date in 2017.
The XEM price took flight in the first quarter, rising to a high of $0.29314. Then it hit a spot of turbulence, leading a sharp fall down to a low of $0.090656.
This was followed by another steep ascent to $0.349178, which was in turn followed by another stumble. At the moment, NEM is hovering somewhere in the middle of $0.20 and $0.21.
This is important to note for several reasons. For one, investors need to know that the ride won’t be smooth. Cryptocurrencies are experimental by their very nature, and there’s always a chance of failure in every experiment.
Moreover, you will likely see days of five percent, 10%, or even 15% movements, and not always to the upside. But you may notice that despite the corrections, NEM is trending upwards.
So if you’re prepared to wait out the rough periods, there is an opportunity to make significant returns from the XEM coin.
Obviously, you have to make the final decision, because it’s your money that’s at stake. All I can do is present the facts, some of which are:
- NEM made a lot investors rich in the last 10 months.
- It is 10x more efficient than Bitcoin, based on upkeep costs.
- It has more use-cases than Bitcoin.
- It is user-friendly for non-crypto programmers.
- It is still relatively unknown.
There are headwinds, of course. NEM faces regulatory uncertainty, contagion from other crypto assets, and a potential lack of liquidity. However, none of these issues appear permanent.
How to Buy XEM?
If you’re interested in buying XEM, prepare for a grind.
Bitcoin and Ethereum may be commonly available, meaning that you can easily change them for U.S. dollars, but XEM is trickier to get your hands on.
There are a handful of fiat-to-XEM exchanges, to be sure, but they are plagued by low trading volumes. Since liquidity might be an issue on those exchanges, I would simply buy Bitcoin or Ethereum first, then trade those for XEM coins.
Over the long haul, we are more bullish on decentralized application blockchains than public ones. Put another way, we believe that NEM (XEM) is likely to outperform Bitcoin and its imitators. As such, we are initiating a $1.00 XEM price prediction for 2018.