Tezos Looks Set to Beat Bitcoin In 2020
Nicholas Otieno May 18, 2020 01:00
Minor cryptocurrency Tezos is making serious gains and is on track to rival bitcoin this year.
So far, Bitcoin has outperformed all other major assets this year, and it is one of the best crypto performers in 2020. Although Bitcoin's price plummeted in March amid a broader coronavirus-induced market sell-off, it is so far up around 30% this year.
But one lesser-known cryptocurrency has nearly doubled since January, with expecting it to rise even higher. Since the beginning of the year, Tezos (XTZ) has risen by 85%, adding to gain made during the previous year and giving the cryptocurrency market capitalization of nearly $1.8 billion.
By market capitalization, Tezos was the 15th most valuable cryptocurrency at the start of the year. However, now the cryptocurrency has broken into the top ten and could move quickly past some rival cryptocurrencies if its run continues.
Tezos has indicated strong gains in 2020 with the current price of $2.68 almost double the price coming into this year.
Tezos is a preferred way for holders to profit
Tezos (XTZ) is one of the most prominent and largest among a fast-growing list of digital currencies recognized as “staking tokens.” Tezos is the most among crypto assets with a market value of at least $1 billion. That is more than double the 37% gain for Bitcoin (BTC), the largest cryptocurrency by market value.
Tezos styles itself as a self-amending cryptographic ledger and utilizes the so-called “proof-of-stake” consensus model. The crypto has emerged as a favorite cryptocurrency and blockchain for tokenized security and real estate tokens.
But Tezos cannot be mined like Bitcoin because it uses proof-of-stake rather than Bitcoin’s proof-of-work.
Proof-of-stake blockchains are normally considered to be less resource-intensive and more scalable as they do not expect miners to solve complicated mathematical problems so that to create the next bloc.
Proof-of-stake blockchains also incentivize token holder participation in network security. If Tezos holders store their funds in certain wallets, then they can stake their XTZ and get additional tokens as a reward for verifying and creating new blocks in the chain.
Joseph Todaro, managing partner at Blocktown Capital, an investment company specializing in digital currencies, said that the strong performance of Tezos is partly because of increased interest in staking-based returns.
Some crypto exchanges provide staking as a service to make it easier for investors to participate. Recently, Tezos has benefited from new listings on the exchanges like Coinbase, Binance, and Bitfinex.
The Tezos rally started in November last year and has been pushed on by key partnerships with financial institutions and the so-called Tezos Foundation, which awards users up to 0.01 XTZ every 12 hours.
Ethereum, which is the second-largest cryptocurrency after bitcoin, intends to upgrade to a staking model in July. Some analysts state that ether has created additional interest among speculators because of the transition to staking.
Latin America’s largest investment bank boosts Tezos with 1 billion STO
Tezos has been one of the best performing crypto assets of this year. The blockchain of Tezos run by the Tezos Foundation has made important achievements in recent years in terms of joining forces with platforms, groups, and banks to further develop Tezos’ potential.
Several partners use Tezos as a part of the solutions applied to everyday life. June last year, BTG Pactual, Latin America’s largest investment bank announced that it plans to use the Tezos blockchain for security token offering potentially worth $1 billion.
BTG Pactual bank partnered with the leading Dubai-based asset management company Dalma Capital to issue $1 billion of real estate securities on the Tezos network. It is, therefore, clear that the Tezos Foundation remains committed to consolidating vital strategic cooperation with the aim of developing real use cases for Tezos (XTZ).
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