(Updated May, 2018) Last year has been a very lively one for cryptocurrency investors, and 2018 has been just as exciting so far. Qtum was one of the breakout cryptocurrencies in 2017, and this article will give you a detailed analysis of our Qtum price predictions. Pronounced “quantum”, Qtum is a framework for creating fully-programmable contracts and applications, similar to Etherium, but running on a faster and more business-friendly architecture based on Bitcoin. This makes it a very good potential investment in the current altcoin market. Swinging between a high of $25.00 in April and a low of $16.25, Qtum has recently reached a line of resistance of $25.00 and a line of support of above $22.00. We are optimistic that it will perform well compared to the rest of the market in the following months of 2018, as a $30.00 price value is within Qtum reach.
Qtum first came on the market in March 2017, but really took off in both price and trading volume in December. It hit its peak on January 7th, crossing the $100 mark, before settling back to a more stable price range.
An interesting observation about its price history is that it tended to perform better in US Dollars than in Bitcoin. In fact, there are several time periods where we see its USD-denominated price rising as its BTC-denominated price is falling. That indicates that Qtum was rising in value during the time that Bitcoin was falling.
Despite recent developments in other major currencies, such as Ethereum, Bitcoin still serves as an index for the crypto market. If it is falling in value, then so is the market as a whole. The fact that Qtum is able to make gains against the market suggests that it has strong fundamentals, and deserves a spot in your portfolio.
During the general cryptocurrency market slump in January, Qtum was down only 7% against the rest of the crypto market, which was down 9%. This is another indication that Qtum demonstrates good alpha. This does not necessarily make for clear Qtum price predictions for 2018. However, the cryptocurrency market, in general, is projected to have a good year, which suggests that Qtum will do even better.
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Volatility is the perennial risk of cryptocurrency investment; unlike conventional securities like stocks or bonds, crypto tokens can quickly rise and fall by very large margins. However, our Qtum price predictions suggest that it is likely to be significantly less volatile than most of the other tokens on the market, making them more beneficial to hold.
Qtum has a very high market cap – the total value of tokens in circulation – compared to most cryptocurrencies. At just over $2 billion USD in total market cap at press time, it is one of the 20 largest cryptocurrencies on the market right now. This in itself tends to reduce its volatility compared to other cryptocurrencies, since it would take either a very large sell-off or a very large buying frenzy to quickly crash or inflate its price.
This makes it less vulnerable to spontaneous fluctuations based on hype or bad news. Most investors capable of buying and selling quantities of Qtum that can meaningfully move its market price are not going to base their decisions on rumors or speculation, making huge swings in price less likely.
Compare to other cryptocurrencies:
This is further reinforced by a number of fundamental design decisions of the Qtum token itself. The total number of tokens is fixed, with 1% annual increase built into its mining algorithm. And speaking of the mining algorithm, it is based on a proof-of-stake rather than proof-of-work model.
That means that in order to process Qtum transactions and collect transaction fees, a user needs to put up some of their own tokens as collateral. That not only improves security, as bad-faith actors face financial penalties but also helps keep tokens in use. Generally, the more tokens are used for transactions as compared to held as investments, the less volatile a cryptocurrency tends to be.
While cryptocurrencies are increasingly gaining in popularity and acceptance, they are still far from mainstream products and have to rely on established partners to enter the “real world”. The crypto tokens that manage to do that flourish, while the ones that fail to do so eventually peter out, even if they happen to have great technology.
In early January, Qtum took a step in the direction of success when it signed partnerships with both Qihoo 360 and Baofeng Bokocloud. While those names might not mean much to many people in Europe and North America, they are big names in China – a country of almost one and a half billion potential customers.
Qihoo 360 is an internet security firm offering a lot of software and network services, as well as producing one of China’s most popular web browsers, while Baofeng Bokocloud makes a very popular media player. If both companies release products using Qtum technology, the demand for the tokens will skyrocket, making us very optimistic in our Qtum price predictions.
A token that doesn’t do anything is not likely to hold much value after the initial investor excitement wears off, so a good selection of applications is key to any crypto token’s success. This is one of the big areas of Qtum’s success and is likely to drive its growth over the course of this year. It already has several distributed applications released for the platform, as well as comprehensive guides for making your own. More importantly, it is very effective in supporting light wallet applications that are particularly good for mobile use.
As more applications are released by the Qtum core team, as well as third-party developers, the demand for the token will grow, leading to consistent price increases, assuming the applications are successful. Given how large the mobile market is, that is a recipe for sustained long-term growth for the Qtum token.
The Qtum team clearly has a good PR component, as they have done a good job of capitalizing on good news as well as public interest to promote their platform and products. The announcement of the Qihoo 360 and Baofeng Bokocloud partnerships were done on back-to-back days, helping to keep the cryptocurrency on investors’ minds longer. Nor do they shy away from larger-scale hype-building activities, such as when they launched a Qtum node into space on a Chinese satellite at the start of February.
Unsurprisingly, both of those events were accompanied by solid gains during an otherwise down market period. Such events are important to keep in mind for the 2018 Qtum price predictions, as they can lead to sudden spikes in the token price, which can make Qtum seem slightly more volatile than its fundamentals suggest.
Based on our analysis of Qtum’s technology, market position and price history, we are optimistic in our Qtum price predictions for 2018. Its new partnerships and promising pipeline of applications are likely to generate new demand for the Qtum tokens, while the stream of good news and occasional publicity stunts from the team is likely to draw in investors from the inside and the outside of the cryptocurrency world.
This points to a steady Qtum price growth, the volatility of which will be tempered by the token’s high market cap. Qtum is a good token to hold that is likely to grow in value over the long term. Have you had any experiences investing in Qtum? Let us know what are your Qtum price predictions!
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