With All Eyes on the Bitcoin Price, another Crypto Is Up Over 800% This Year
The price of bitcoin has tripled approximately since the beginning of the year, and most people have associated price movements with advertising about the next Libra cryptocurrency on Facebook, although Libra is very different from Bitcoin.
While Bitcoin has been in a tear this year, almost all major altcoins have not been able to keep up with the world’s first, largest and most popular cryptocurrency. In fact, Bitcoin SV (BSV) and Chainlink (LINK) are the only two alternative chips to face Bitcoin in the last three months, according to Longhash.
BSV is backed mainly by a personality cult of someone who has claimed to be the creator of Bitcoin Satoshi Nakamoto, but has never been able to prove it. In fact, many in the space of cryptography have referred to him as a complete scammer or swindler.
On the other hand, LINK is the token associated with a project that attempts to solve Ethereum’s oracle problem. LINK would not have been considered an important encryption asset at the beginning of the year, but the token has risen 839% against the US dollar so far, according to OpenMarketCap.
CHAINLINK AS A SOLUTION
Oracle’s problem is basically that intelligent hiring platforms like Ethereum have no knowledge of real-world data.
Chainlink’s solution to the Oracle problem involves the use of a decentralized network of oracles to reduce the risks associated with trust in a single third party.
It is possible that something like Augur or Bitcoin Hivemind is necessary to provide a sufficiently decentralized network of oracles.
ABOUT THE LINK TOKEN
The LINK token is used in the Chainlink network for activities such as paying for the data and putting in additional material. This economic model attempts to create the right incentives for the value of LINK to increase as more entities enter the network to provide Oracle services.
While this model seems to make sense at first glance, it is not clear if the additional LINK tab is necessary.
While LINK has been the cryptographic asset market favorite in 2019, it is important to remember that these types of currencies can fall as fast as they rise, especially when they rise as fast as LINK this year.
LINK price speculation existed months before the main Chainlink subreddit was created, which means that the effects of the network are probably also at stake there.
Buying this coin today may not be very different from playing slots in a casino. Anyone who decides to speculate about LINK should only do so with money that they can afford to lose.