A few years after the launch of Bitcoin, some developers had already noticed some potential problems in the network. This is when a number of new coins were created to remedy those problems. One of them was the Decred project, which uses the Decred (DCR) coin.
Conceived in 2013, it was among the earliest crypto projects. Today, it is still one of the most popular cryptos and ranks 79th on CoinMarketCap at the time of publication. There are several reasons why the Decred project has remained successful, and some of them are useful for investors to note when making future price predictions.
The story of the Decred project
Although the Decred project whitepaper was published in 2013, it would take 3 years for it to be launched. The developers of the project are only known by the pseudonyms _ingsoc and tacotime. But it is Company 0 (C0), a development firm headed by Jake Yocom-Piatt, that made the project possible. C0 developers actually had to use their own money to fund the project at $0.49 per DCR coin.
Eventually, the Decred project was launched in 2016. Like many other cryptos, Decred copied Bitcoin’s code and made several modifications. In this case, Decred would incorporate both proof-of-work (PoW) and proof-of-stake (PoS) consensus methods.
PoW miners are responsible for adding blocks to the blockchain by raw computational power. Afterwards, PoS miners holding DCR validate those transactions using tickets. 20 tickets are available for each block, but only 5 are randomly assigned to stakers who validate the blocks. They also participate in the Politeia, where policies, upgrades, etc. are discussed freely.
How to invest in Decred
Being an early entrant to crypto, the Decred project is widely accepted and can be bought from various exchanges. Among the top examples are Coinbase, Kraken and Binance but it is also available on the majority of crypto exchanges. Once bought, you can store your DCR in a variety of software and hardware wallets including Trezor, Exodus, Trust Wallet, etc.
Owning DCR can be rewarding because you profit from the rise in value of the coin. Its current value on CoinMarketCap is $113 and the market cap above $1.5 billion, a sharp rise from the launch price of $1. In the past year alone, the price has shot up over 800% and our price predictions point at a further increase.
Alternatively, you can invest by staking in the network. After a block is validated, the rewards are split among all the participants – 60% to miners, 30% to stakers and 10% to the treasury. New DCR coins are released every 5 minutes, so being a staker can also be very rewarding as a long-term investment. As proof, Decred’s Twitter account announced that there had been a 77% turnout among the Politeia in September, showing that more people have become interested in the project.
Is now a good time to invest in Decred?
For the most part, the price chart of Decred resembles that of Bitcoin as you can see in the snapshot below.
Our analysis of Bitcoin shows that its value will continue to rise in 2021 and into the first half of 2022, so that of Decred will rise too. But since it has less market capitalization, it tends to have sharper shifts in price, which can be good for active traders.
In the past 2 months, cryptos including DCR have experienced a dip in prices. We believe this is a temporary pullback as the markets correct before the next surge. Therefore, now is indeed a good time to buy and invest in DCR. but you should always be aware that investing in crypto is risky and there are no guarantees of success.