NEM is another peer-to-peer cryptocurrency that was launched in 2015. NEM has looked to improve on its blockchain technology, and has introduced several new features to that end. NEM’s software runs on a commercial blockchain called Mijin, which has already undergone some testing by financial institutions and businesses in various areas.
Could NEM Increase in Value?
Yes. The value of NEM and other cryptocurrencies could potentially increase in value-perhaps substantially-in the years and decades ahead. How well these currencies perform will depend on several factors, but becoming more widely accepted and mainstream is at or near the top of the list. Many cryptocurrencies have a limited number of coins, tokens or units that can be mined, and therefore have a cap on supply. If demand for these digital forms of money sees a significant increase, prices could potentially rise as the laws of supply and demand take hold.
Can a Cryptocurrency Portfolio be Diversified?
Absolutely. As with other types of investments, diversification can play a key role in investment success and risk management. Although you could put capital to work in a single cryptocurrency, spreading your risk out among several promising currencies may potentially lower risk while possibly providing a greater degree of investment success. Many cryptos have differing features and benefits, and some even use different technology. In addition, there could potentially be several cryptos that see a sharp rise in demand, while some could see lower demand or even become worthless.
Are Price Charts Useful For Long-Term Investors?
Yes, charts can potentially be very useful. Charts provide a simple, graphic depiction of price action. They can be used to look for trends in price, or to spot tradable technical patterns that can be used for buy and sell signals. Charts are available on numerous time frames, from a single minute to a month or even year. Long-term investors will likely be more focused on longer-term charts, such as daily, weekly, and monthly, as they may cut out a lot of the short-term volatility, or noise, and give a more accurate picture as to how the market is behaving.
What Are Some Possible Advantages of NEM and Other Cryptocurrencies?
NEM and other cryptos may potentially offer a low-cost and rapid means of payment or remittance. Cryptos can be especially useful for transactions made in other countries, as they may cost less than a bank wire and may settle faster. Because these units of currency are the same all over the globe, they can also eliminate the need to perform currency conversions when they reach their destination. Some cryptos settle in a matter of seconds, a lot faster than checks or electronic transfers, which can often take 14-30 days to be considered cleared payment.
Is Any Single Authority in Charge of NEM?
Because NEM is decentralized, there is no single authority over the network. NEM connects nodes, or peers, to share resources within the network. Although these networks are largely unregulated, that could potentially change as they become increasingly popular with both consumers and investors.