Stratis coin is not as well-known as some of the big names in cryptocurrency like Bitcoin and Ethereum. However, the project has been around since 2016 and it has seen some enormous price growth since its inception.
Since Stratis coin is not a household name many people do not understand the purpose of project and the use case argument. Is Stratis coin a clone of Bitcoin? Does Stratis coin focus on a specific market or niche?
In this article we will shed a little more light on this lesser known cryptocurrency, the current pricing, future potential, and what may hold back Stratis coin from reaching its full potential. If you are considering in investing in an up-and-coming cryptocurrency then you will want to ensure you have all of the necessary information at your fingertips.
What Exactly Is Stratis Coin?
As mentioned, Stratis coin does not have the name recognition of other cryptocurrencies like Bitcoin. You won’t see mainstream media personalities discussing Stratis coin during the market update on their news program.
So, what exactly is Stratis coin? Is it meant to be a currency to be exchanged between users or does it serve a different purpose like some other cryptocurrencies?
To understand Stratis coin you have to take a wider view of the entire Stratis platform. The cryptocurrency that many users trade and invest in is just one part of the platform.
For the most part, Stratis is aimed at enterprise customers who want to create blockchain solutions for their business without going through the time, effort, and expense of developing an entirely new blockchain platform.
Stratis provides the development backbone which makes it easy for customers to create a unique blockchain solution with a fraction of the development resources required when compared to developing a proprietary platform.
So how does Stratis coin fit into all of this?
Stratis coin is known as the token which is used to transfer value between customers in the Stratis marketplace. The ultimate idea is that Stratis coin could act as the universal currency on the Stratis platform. This negates the need for regular currency exchange and allows people and businesses from around the world to interact and exchange funds in a simple fashion.
Of course, the value of Stratis coin is not just held in its utility. The coin can be held by investors who believe it will grow in value and then exchanged for other cryptocurrencies or fiat currency. On the fully developed Stratis platform it could also be reasoned that the Stratis coin could be exchanged for goods and services.
Finally, like many cryptocurrencies, Stratis coin can also be mined using computer hardware. This provides incentive to users who want to verify blocks on the blockchain in the form of cryptocurrency.
Users will verify blocks of transactions in return for a reward paid out in the form of Stratis coin. This is very similar to how Bitcoin mining works.
To summarize; Stratis coin is both an investment opportunity and currency like many other cryptocurrencies. The coin is also used as a way of transferring value on the Stratis platform. This gives Stratis coin two unique paths to growth.
The Current Price Of Stratis Coin
Stratis coin, much like most other cryptocurrencies, has seen some major ups and downs in the past 12 months. The cryptocurrency market is emerging and investors are still trying to wrap their heads around what coins hold value, which ones will prove to be successful, and which coins are worthless.
As of the writing of this article, Stratis coin has been bouncing around in a price range from around $2 to just over $3. According to CoinMarketCap, the coin sits in the top 50 cryptocurrencies currently available for trading.
These prices are a far cry from the highs that Stratis coin enjoyed in January of 2018 where the price exceeded the $21 mark.
For those who have not been involved in cryptocurrency for very long, that price dip may seem shocking. A drop from $21 to $2 is staggering and could devastate an investment portfolio. However, this kind of volatility is reflective of the cryptocurrency market as a whole.
Around the fall of 2017, Bitcoin began rising in price very rapidly. Mainstream media took note and it wasn’t uncommon to see news stories on a nightly basis about Bitcoin and the potential for cryptocurrency to change our lives.
As Bitcoin grew, so did other cryptocurrencies. Ethereum, Litecoin, Ripple, and many more rose rapidly along with Bitcoin and the cryptocurrency market expanded at an exponential rate. However, in January of 2018, everything came crashing back down.
Stratis coin was not the only cryptocurrency to see a drop of this size. Almost all cryptocurrencies lost value in a short span of time. The gains of the previous months had been greatly reduced.
Since the massive drop in late January, cryptocurrencies have been steadily trending downward as the market readjusts. Of course, the question now becomes whether investing in Stratis coin is a good idea.
The Potential For Stratis Coin
It can be very hard to predict cryptocurrency markets. We have seen the high price point potential for Stratis coin at just over $21. We have also seen how fast that the coin can lose value.
More importantly, it’s plainly clear that the entire cryptocurrency market is still very much tied to the price of Bitcoin.
Ultimately, in the short term, Stratis coin prices will be largely dependent on the price of Bitcoin. This is true for most other cryptocurrencies as well. History has shown that a rise in Bitcoin prices are followed shortly thereafter by a rise in the price of so-called alt-coins like Stratis coin.
Of course, a fall in Bitcoin prices could drag down the price of Stratis coin even further. Needless to say, there is a lot of volatility in this relatively new market for investors.
Over the longer term, Stratis coin does have the potential to prove its own worth and separate itself from the likes of Bitcoin. As the Stratis platform continues to grow and earn business from enterprise level customers there will be more demand for Stratis coin. This would ultimately help increase the price over time.
Of course, there is also the potential for the Stratis platform to fail. Many other fintech companies are seeking out the business of enterprise customers while also offering their own cryptocurrency as well. Ripple is the largest of these companies but certainly not the only player in the game.
For Stratis coin to gain value over the long term it must prove that the Stratis platform has value. In addition, the entire cryptocurrency market has to separate from Bitcoin and the price volatility that the world’s most popular cryptocurrency brings with it.
Should You Invest In Stratis Coin?
We have covered a lot of information but we have still not answered whether investors should be considering Stratis coin. That question is not a simple one to answer.
Cryptocurrency investing is incredibly volatile right now. There is potential for rapid growth as well as potential for massive losses. Right now the market still seems to be trying to find a lower level of price support. Getting in now could be getting in at the low point, it could also mean catching the falling knife.
Ultimately, investing in Stratis coin will depend largely on your own appetite for risk. Investors who are willing to risk losses in return for huge gains may want to consider Stratis coin as part of their investing strategy.
Those who are looking for safe, conservative investments should probably avoid Stratis coin and other cryptocurrencies or, at the very least, limit their exposure to these investments.
A well-crafted investment portfolio will allow investors to diversify their exposure to any one currency, company, or industry. If you are investing in cryptocurrency you should ensure that your portfolio is balanced with traditional investments across a variety of industries as well. This will help soften the blow of any further collapses in the cryptocurrency markets.
In the same vein, those who choose to invest in Stratis coin should ensure that their cryptocurrency portfolio is balanced with other currencies as well. Buying some Bitcoin, Ethereum, Ripple, or Litecoin will provide diversity and reduce the potential losses should Stratis coin end up failing in their goal of becoming a powerful platform for enterprise customers.
As always, if you are considering investing in anything, you should do your own research and assess your own risk tolerance. Invest accordingly and never risk more than you feel comfortable with losing.
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