The sudden collapse of bitcoin also probably influenced the drop in Stellar Lumens price. Since no one knows what the foundation will do with its coins, a lot of investors feel uncomfortable buying those currently available in the market. The Stellar Development Foundation controls the other 30 billion. Currently, about 20 billion coins are in circulation. At the same time, it means that new investors don’t have as many opportunities to buy coins. Unfortunately, it has also encouraged some bitcoin whales to start large mining warehouses that use massive amounts of electricity.Ĭapping the total number of Stellar Lumens early helps avoid environmental issues. The increased energy helps ensure that bitcoin becomes more scarce over time. For example, some claims – though it’s debatable – that each new bitcoin mined by someone takes more energy to create than the previous one. Coins that rely on constant mining require more and more energy. This decision makes sense from an environmental perspective. First, the Stellar community voted to stop making more Lumens after November 2019.
Why did Stellar Lumens fall? A few factors probably influenced its loss of value. Stellar Lumen fell below $0.30, losing more than half of its value in a matter of days. Regardless, early investors now found that they had accumulated massive returns from a level of growth rarely seen in any market. Could it really reach an even exchange rate with the US Dollar? Now, some investors and onlookers wondered whether XLM could meet its goal. After some ups and downs, the value piqued at $0.70 in mid-May. Between January 2 and February 5, the price of XLM jumped from $0.23 to $0.55. Near the beginning of 2021, something started to change. Unfortunately, XLM never broke above $0.20. In other words, spending $100 to purchase 1,000 $0.10 coins could potentially create an investment return of $900 ($1,000 – $100 = $900). Assuming that the currency would eventually reach $1, buy at $0.10 or so would have netted a massive 900% gain. Mild skepticism kept the value between $0.20 and $0.30 until just before 2019, when the value suddenly plummeted to $0.10 and continued to hover around that price, lifting to $0.15 on some days and falling to about $.06 on others.Īt this point, investors had an excellent opportunity to grow wealth by purchasing XLM at nearly nothing. That way, it can offer something very close to a 1 for 1 exchange rate for international payments. XLM strives to stay as close as possible to $1. When you look at the values of most cryptos, you will see that they cost much more than $1 (bitcoin costs tens of thousands and Ethereum is catching up in a hurry). Stellar Lumens aims to lower the cost of remittance and other international payments so more value reaches the recipient. That means $100 turns into $77 by the time it reaches its destination. In total, you could lose 23% or more of remittance payments. Recipients may need to pay an extra 8% to access their cash. The fees associated with remittance payments often cost 15% or more. Stellar Lumens provides an excellent option for remittances, when workers in one country send money across borders to help family in a different country.Īccording to Stellar, most remittance transactions fall between $200 and $300. Similarly, individuals can send money to friends, family members, and colleagues in other countries without the excessive fees of traditional transfers. Stellar is working toward building an international trading system that lets people buy, sell, and trade money without paying heavy fees or losing value through exchange rates.įor example, a retailer can buy Stellar Lumens with USD and use the XLM to pay a manufacturer in Mexico. XLM’s value fluctuates, but Stellar didn’t create the coin just to raise money. Investors buy coins from the company, the company receives money, and the investors wait for their investments to grow in value. The coins act very much like stock shares. Usually, an initial coin offer (ICO) raises money that a company can use to fund growth. The Stellar Lumens coin, XLM, has a different goal from most digital currencies. The sudden drop in price has many investors wondering whether the coin will fully recover or should they dump their coins to protect themselves from future losses. On the other hand, the Stellar Lumens coin has suffered a few falls since it was released in 2014. The Stellar Lumens price prediction forecast doesn’t suggest that XLM, as the coin is called, will reach the heights of bitcoin, but many people believe that it will increase enough to generate generous profits. Stellar Lumens Price Prediction Forecast: Digital currencies have become a topic of interest over the last decade as cryptos like bitcoin have turned some investors into millionaires.
0 kommentar(er)
