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Review on NEM by rubesh kumaran
Currency Economics: NEM has a capped currency volume (8,999,999,999). This…
Currency Economics: NEM has a capped currency volume (8,999,999,999). This reduces the inflationary pressure of currency volume expansion. Moreover, harvesting (made possible at 10,000 XEM) provides an incentive for individuals to hold XEM and use of XEM as a currency is encouraged through the harvesting mechanic. These factors indicate that NEM has scope for rapid price acceleration due to an incentive to hold.
-Market Trading & Liquidity: In comparison to many other major currencies NEM has a low trading volume and relative stability. This suggests NEM holders are in it for the long-hall and prices are less inflated by trader speculation. Additionally, whilst NEM is on Poloniex and Bittex many other major exchanges (Kraken) do not stock it. Lower access predicates lower price. As access increases (which it will) demand is only likely to improve.
-Location: NEM is centred around Japan, a country at the forefront of cryptocurrency legislation development. Potentially a high value market which NEM could capture. I’m a firm believer that will see Asian focused cryptocurrency go on this rise over the next few years.
-Knowledge: Despite its high market cap, NEM little is little know and rarely discussed. This gives it good scope for expansion. Especially if marketing can be improved.
-Development: NEM have a huge development fund (around 1,000,000,000 XEM). Whilst it generates the risk of a pump and dump (not likely see marketing) it gives the development team the option to expand rapidly and invest heavily.
Pros
- NEM has some powerful technological advantages over rivals. By coding its own blockchain, from the ground-up, NEM exhibits efficiency stability and speed
Cons
- NEM does lack many of the features (and flexibility) of ETH. Will process less transactions than ETH raiden (4000/s is still pretty good).
