InvestAnswers
https://www.patreon.com/InvestAnswers #Algorand #Algo #AlgoPricePredictions The opinions expressed in the video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. 0:00 Intro 0:20 IA Token Valuation Process Launched in June 2019, Algorand is a permissionless and open-source smart contract blockchain network upon which anyone can build Algorand solves the blockchain trilemma of speed, security, and decentralization simultaneously Founded by Turing award-winning professor Silvio Micali, MIT, Algorand has a strong team’s backing, investors who have backed the project financially, and reliable technology 2:00 What it Does The public version of the Algorand blockchain is primarily designed to enable other developers to create new kinds of applications fuelled by cryptocurrency with low transaction fees and fast finality. They call this FutureFi on Algorand Create & Deploy Tokens, NFTs, Stablecoins, Securities, Currencies Simple & Cost Effective Payment Infrastructure Create New Financial Tools, Protocols and Services 3:00 Background – What is Algorand used for? 4:00 Bringing Cool Use Cases to Life! 5:00 How it Plays Algorand has the projects like Circle and run the currency for the Marshall Islands 6:00 Target Industries ALGO focuses on: Financial services Microfinance Government and PS (eg CBDCs) Insurance Real estate tokenization Fraud detection Copyright mgt eg NFTs, fractional NFTs and more 7:00 Scorecard Ranking [40th 2.9bn MC] 8:00 Benchmark Ranking 9:00 Value Propositions – Green Carbon Negative blockchain Responded to Musk Directly Ties in with work on Marshall Islands Pushing payments infrastructure 10:00 Value Propositions – Staking 11:00 TRILEMMA Value Propositions In the old days: speed, quality or cost. Pick 2 In the blockchain world: scale, security or decentralized. Pick 2 Algorand is like Solana 12:00 Algorand Adoption Use cases have expanded DeFi use cases being built CBDC with Marshall Islands NFT play Stablecoin Play 13:00 Ecosystem Integrations of Note: Polygon (Matic) Amazon Managed Blockchain Avalanche Binance Smart Chain (BSC) Anyswap Arkane Crypto.com Cudo Miner Dune Analytics Ethermine Ethpool Harmony MetaMask Mintable PhoenixMiner QuickSwap Ren Substrate ethOS 14:00 Longevity and Track Record Silvio started Algorand in 2017 with the goal of improving Bitcoin’s underlying decentralized ledger technology Within two years of starting work on Algorand, the project would raise its first $4 million seed round in February of 2019, quickly followed by $62 million raised in an ALGO Dutch auction run on Algorand’s own PPOS blockchain Algorand’s PPOS blockchain saw its mainnet launch in June of 2019 15:00 Price Prediction – Token Supply Max Supply Cap of Supply Cap 9,979,490,657 tokens Currently 1.04BN have already entered the market meaning 150M+ will be added to the market thru rewards, staking etc 15% inflation 16:00 Price Prediction – Token Supply ICO at $3 Tanked Hit $1.86 8 Feb and since then has stayed in a range Now at 200 DMA which could prove to be strong support Currently 0.94c 16:05 10 Price Models People love to model ALGO Some conservative numbers Some crazy numbers 2030 – $167 = 1.7 Trillion Price Prediction Coin Price Forecasts 2021-2032 16:55 10 Price Prediction Models w/o Crazy Forecasts 2021 y/e avg 3.30 2025 y/e avg $5 2030 y/e $4 which makes sense when you consider coin inflation. $4 = $40 BN market cap 17:00 IA Prediction Range based on growth rates and relative market caps Also takes into account token inflation adding 150M token per year Range from $1.89 y/e 2021 to $4.56 in 2025 to $5.42 in 2030 2030 Market Cap approx $50BN ie 17x higher but remember dilution The token inflation is what drives these numbers down IA Algorand Prediction 2021-2030 YEAR 17:20 Risks The Algo distribution process produces excessive dilution and inflation effects that may impair the pricing stability of the tokens ie 9 billion tokens to be released Competition Ethereum EIP 1559 Lack of focus – they seem to be going after too much eg vaccines, stablecoins, exchanges, real estate, NFTs etc They need more Dapps Many Positives Also Algorand helps developers build quality decentralized applications. It can be used to develop highly scalable DeFi projects, institutional finance products, and government CBDC projects Algorand is used by hundreds of companies like Circle, IDEX, Republic, and Tether Future is bright if they can keep momentum going HOWEVER I see it merely as a speculative asset – buy low sell high but not a long term keeper due to the token inflation