Why am I investing in EOS? (SWOT analysis)

in eos •  2 years ago  (edited)

As an ordinary person, I have gone through many failures and regrets in my life until 2012. Luckily, failures turned into great lessons, and I started to make great decisions since 2013. One is start investing in CryptoCurrency. As of now, I am holding 30K EOS and my ultimate goal is to accumulate 100K EOS before main network launches.

Based on my research on EOS, I would like to share EOS SWOT analysis. Please note this is my personal opinions.

Strength:

  • Transaction per second (we all know EOS can potentially offer millions+ transaction per second)
  • No transaction fee for end-user (this is game changer)
  • High latency (Dan mention on 09/20/2017 London meetup - sub-second interval time)
  • Huge fund up to 1 billion dollar (block.one has huge fund and CEO-Brendan mention on 10/07/2017 that they will leverage some portion of their capital for the entrepreneurs)
  • EOS has many projects being developed already (according to CEO-Brendan on 10/07/2017)
  • Bitshares and possibly Steem will move to EOS
  • Overall technologies and utilities are superior to others - competitors in current blockchain space

EOS being able to support million+ transaction per second as well as providing zero transaction cost for end user is what makes EOS the best. EOS will be the only platform that is able to support commercial scale dapps.

Weakness:

  • Time (many things can change until June, 2018)

EOS is already late to the market and EOS do need to build strong community fast before Ethereum and/or other competitors take over majority of the market

Opportunities:

  • CryptoCurrency has no upside limit (human being never had dealt with such thing in the history)
  • CryptoCurrency had exponential growth in market cap as well as awareness in 2017. This will bring more Dapps and ICOs to the market in the future
  • Major blockchain companies could not deploy their projects due to low technical specifications on current blockchain space. These companies more likely to join EOS community

Threats:

  • Vitalik is too genius. He may solve and implement Sharding technology on Ethereum and improve overall Ethereum technology before EOS build strong community
  • Overall CryptoCurrency market crash and never recover (this can happen by major countries such as US and/or Europe decide to ban overall CryptoCurrency)
  • EOS network can be launched by anybody and EOS ERC-20 token holders don't have guarantee receiving real network tokens

I personally don't worry about last bullet item, because block.one also holds 10% of the coin and they will only support (with up to 1 billion dollar fund) the network that gives real network tokens to EOS ERC-20 token holders. Also, Bitshares and possibly Steemit will also move to EOS network that block.one support.

With this analysis, I believe risk/reward ratio is extremely high. I believe there will be a strong demand for the coins since coin guarantee the utility and network capacity proportionally. Therefore, I am extremely bullish on EOS for long-term and I am personally expecting for at least $5 per coin in 2018 and at least $20 per coin in 2019. I believe EOS can reach top 3 market cap by early 2019, and also may surpass Ethereum by 2020. I welcome readers to leave comments not only asking questions but also providing other opinions to me and to all readers.

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Another downside to me is the inflation of the tokens once the blockchain will be created. The extra created will be the payment for token holders if I understood correctly

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EOS will be using delegated proof of stake. EOS token holders vote who to produce the block, and block produces gets rewarded. Token holders vote how should inflation (newly created) tokens be used. For example, we can say 1% should be used for marketing, 3% used for block producer, and destroy remainders to reduce inflation rate, etc.

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I dont like the inflation part. I understand its necessary because there are no transaction costs but to me its a clear downside to the project :)

Nonetheless im in:)

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I hear you, but we do not have a choice. It's better to have inflation than have transaction fee. At the end, we need to give incentive to block producers.
If EOS market cap reach 20+ billion dollar, I think inflation rate of 1% is enough to reward block producer. Then, we may only have 1% inflation rate.

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  ·  2 years ago (edited)

Its not if its when

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The smiley is not working on my post :)

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Maximum inflation rate is 5%. But we do not have to use all 5%. We can always vote to destroy some portion of inflation.

Great analysis and I like your prediction. The first two threats cannot be ignored. You can be sure that Vitalik is already working on the sharding technology and ethereum already has a big following. I'm sure he has a personal mission not to let EOS eat his lunch. After all, EOS has been dubbed "The Ethereum Killer" as well as "Ethereum on Steroids" for its abbreviation.

As far as the cryptocurrency market crashing and not recovering for a long time (just like when bitcoin crashed in 2014 and just stayed down for 2-3 years before finally started its upward trajectory again late last year) is always a possibility to consider. This is always on the back of my mind otherwise I would have already gone all-in (and I mean bet-the-house-all-in-into- cryptocurrency) and that's why I haven't.

The risk/reward ratio is indeed extremely high. If you get to your 100K EOS holdings goal before it reaches $20, you'd have $2 million by the time it reaches $20. The next step, reaching the top 3 market cap in 2019, well, let's just say that you won't need your 401K money by then!

Excellent post. Keep up the great work!

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Thank you! I do enjoy your post and reply as well!

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Hi @tytran , good to hear your comments on predictions. You have had an important experience with investments in the past that you could learn a lot, and I think that is very valuable. EOS has a good possibility to go up in the short term, lets say next 2 months?

Regarding Loopring (LRC), what do you think about it? Have you checked it out?

By the way, when you have a chance, you may like to give me your opinion on the 7 strong reasons why STEEMIT will climb: https://steemit.com/steem/@gold84/7-great-reasons-why-we-should-buy-at-least-100-or-1000-steem-today-and-power-up

Regards,
@gold84

  ·  2 years ago (edited)

Thank you for your interest in EOS, please note that “The EOS Tokens are not designed for investment or speculative purposes and should not be considered as a type of investment.” therefore block.one will not comment on topic related to the price of the EOS tokens.

Feel free to contact us if you have further queries.

This is the answer i get from their official FB page. it doesn look like they care about investors.

Love it! Thanks! Resteemed & subd.

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Thank you. I do enjoy your post as well!

Hi, ordinaryrich, I see anybody being able to launch EOS is a positive, especially if including the snapshot. You would have 30K EOS on multiple chains given that scenario. So long as, replay protection and other distinctions are built in, having multiple variants of EOS would be great. I wrote a post that touched on this subject here https://steemit.com/eos/@johnchamberlain/eos-blockchain-split-testing-different-variants-of-the-same-idea

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I totally agree with you. But, some companies launching network can possibly remove the snapshot data and do whatever they want to do. It does not worry me too much since they wont get much support.

i'm also accumulating EOS and believe in it long term. however, i'm not sure how we actually earn money from EOS. is it proof of stake - i.e. you just hold the tokens and earn something on the side?

or do we buy EOS tokens when cheap but selling them high later?

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I'm betting that we can lease out our stake.

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i hope so too. i wont feel good selling EOS lol

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That is correct. Buy low, sell high. In order for coin price to go high, there should be a demand. Demand will be there because coin will be used for utility of the network. For example, if you hold 1% of the coin, you are guranteed for 1% of the network, storage capacity, etc. Dapp companies will want to hold more EOS which will increase the demand.

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ohh.. i thought we can earn from EOS by just holding them.

You made some valid points. Thanks for sharing this with the community. SWOT analysis are good however we always need to keep in mind overall perspective.


https://CoinCheckup.com/coins/eos/analysis - Crypto Market Analysis, Screening, Investment stats & Price Predictions

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Thank you. I am very bullish on EOS. In near future, I will try to write overall perspective on EOS.

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