Is Cosmos (ATOM) A Good Investment?

Cosmos became very popular after its Tendermint SDK and Cosmos SDK were directly used to create Binance’s own blockchain called Binance Chain. Of course, Cosmos’ use cases are much wider beyond Binance Chain, and it has become one of the top altcoins with worldwide acknowledgment.

Cosmis sees itself as the full-stack solution to solve interoperability problems. Just like how they refer to themselves, Cosmos is an "internet of blockchains", where people can easily create their own blockchain platforms, and everything is interconnected together in the Cosmos ecosystem.

But here’s the million-dollar question. Is ATOM, the native cryptocurrency of Cosmos, a worthy investment? Well, we are here to find out together. To understand what Cosmos is trying to solve, you might want to check this article

• which talks about general problems that blockchain can solve.

The Basics Of Cosmos And ATOM

Cosmos is trying to solve the blockchain interoperability problem at its core. It creates its own Tendermint Core as well as Cosmos SDK to help non-techy people to create their own blockchains for various purposes, including enterprise-based solutions.

Cosmos understands there’s a "gap" between the public blockchain ecosystem and enterprise needs. For many years, enterprises have been using their own customized private blockchains or utilize popular semi-private blockchains like R3 Corda and Hyperledger. The problem is, these blockchains only work on their own without the ability to connect with each other.

However, many companies want to be able to interact and dive to other enterprise blockchains when they want to expand. This is where the "gap" is filled by Cosmos. Cosmos Network allows these companies and entities to create their own blockchains without any interoperability problem.

With the utilization of Tendermint, the Cosmos network can process up to 10,000 TPS with only a second block time. While there’s no certainty whether the Cosmos network would be slowed down by massive applications in the future, for now, we don’t have any transaction speed issues whatsoever.

This is also the reason why Binance Chain forked Tendermint because they understand the technology works out of the box. Cosmos’ native cryptocurrency is called ATOM where it’s primarily being utilized by the network validators. ATOM is paid to the validators as rewards for securing the entire network. That being said, ATOM is not required for gas fees. It’s not mandatory to pay gas fees with ATOM if the sub-blockchains prefer to use their own crypto tokens.

So, Is ATOM A Good Crypto Investment?

To understand the value of ATOM, we must also learn the value and use cases of the Cosmos network. Besides Binance Chain, there are other notable projects that have adopted Tendermint and Cosmos SDK. They are Playlist, Sentinel, Kava, e-Money, IRISnet, Band Protocol, and AKASH network. However, none of these projects have as much popularity as Binance Chain.

While ATOM used to be one of the bigger hype projects in crypto space back in 2019, it’s no longer the case. At the moment, ATOM is struggling to keep its place in the top 20-25 crypto rankings. Last year it was one of the top 15 altcoins by market cap.

If ATOM and Cosmos can’t find new adoption, it is possible that people would move on to other blockchain platforms. As we all know, this year (2020) has been a big win for DeFi protocols. While speculators have been actively trying to find "the next smart contract platform" to replace Ethereum in the world of DeFi, it’s quite possible that Cosmos would be overlooked.

However, recently ATOM has been gaining positive momentum in terms of price appreciation. In general, ATOM is a decent cryptocurrency to put your money in, but might not be as worthy as some other top altcoins.

Conclusion

Cosmos became popular when it was forked to create Binance Chain. ATOM remains a good altcoin with big potential, but it might not be that successful if they cannot find new big use cases in the near future. Cosmos has a lot of potential though as they can help to solve all problems that can be solved by traditional blockchains. You can read this article if you are interested to learn more about problems that blockchain can solve.

A strong blockchain advocate, crypto enthusiast, and secretly hoping crypto will go mainstream