What is Reddcoin (RDD)? | Should you invest in it? | How much will the price grow in 2018?
In this post, we'll exclusively look at the 69th largest cryptocurrency right now, Reddcoin. We'll briefly explain what Reddcoin is, then we'll talk about the future of it and our price predictions for 2018.
What is Reddcoin?
It's basically a newer and upgraded version of Dogecoin.
Its main use is as a social tipping system. And just like Doge, there is a REALLY big supply of coins. This is done intentionally because the creators wanted to have a huge amount of coins in circulation. The reason behind it? It’s cool! Think about it, wouldn’t it be cool to say “I just sent you ten thousand Reddcoins!” or “I just sent you hundred thousand Dogecoins!”.
Yea, It’s cool. But at the same time the huge supply of coins is one of the downsides of Reddcoin. The huge supply will make it unlikely that Reddcoin would follow the same kind of trajectory like bitcoin.
The huge supply of coins also means that if Reddcoin reached the 1$ mark, it would have a market cap of 28 billion, which is over double the market cap of Litecoin (5th cryptocurrency in the world). So that means, that it’s unlikely Reddcoin could reach 1$ anytime soon.
Reddcoin has many of the same features that Dogecoin has. It has a loyal community, although it is a lot smaller because it’s a more recent coin than Dogecoin.
One of the biggest differences in these coins is that Reddcoin uses Proof of Stake instead of Proof of Work.
Proof of Work algorithm is the old technology that uses GPUs, CPUs and specialized mining equipment to solve complex math problems.
Proof of Stake algorithm is a newer technology which is a lot more efficient, because it doesn’t require any electricity or computing power. Instead of people having mining hardware, they basically just own some of the coin and stake it. When they have staked the coin, they will receive interested on the amount of money they have staked. That completely removes the need for mining.
For a more in-depth explanation check out this video from Ivan on Tech
Is this a big deal for currency focusing on social tipping? We don’t know. Only time will tell if Reddcoin will pass Doge.
How to use Reddcoin?
It’s simple, just buy some Reddcoin, transfer them to your wallet and you are ready to start tipping people.
If you'd like to see Reddcoin in action, you should check out David's video on this topic. He will show you how simple and easy it is to use.
The future & Price predictions
It’s hard to predict the future of Reddcoin. Is a coin focusing on social tipping really needed? I don’t think so.
Of course, I might be wrong, but I really don’t see a big future for Reddcoin. Don’t get me wrong, the idea and the technology behind Reddcoin is great, but it would need to get mass adoption to really become a big thing and I don’t see that happening. Therefore, I don’t see Reddcoin as a good long-term investment. Still if I had to choose between Reddcoin and Dogecoin, I would choose Reddcoin just because it’s a newer coin and it uses PoS instead of PoW.
Does this mean Reddcoin is a bad short-term investment?
Not necessarily, the price of Reddcoin could still easily double or even triple if some big news come out, or the community grows a lot and hypes the coin. I personally invested in Reddcoin when it was around 0,07$ and sold around 0,17$, I over doubled my money in few days. That’s why I believe it’s still possible to make a nice profit with it. Especially if they release some big news, like a new partnership.
My price prediction for 2018
The price of Reddcoin has absolutely exploded in the past few weeks. It went from ~0,002$ to over 0,20$ in a week, that's over 800% gain. Now, after the price correction, Reddcoin is trading around 0,010$. This was mostly because a new partnership and a lot of people (like John McAfee) hyping it everywhere.
Do I believe that something like this could happen again? Definitely, the price of Reddcoin could easily explode again, BUT it would most likely drop back pretty soon after the explosion.
In long-term I think that Reddcoin could reach 0,25$ and stay at that level, but I don’t think it will ever go further than that.
Conclusion
Reddcoin is definitely an interesting project and it’s hard to predict the future of it.
Is Reddcoin a good investment?
I’m not a financial advisor, but in my opinion for long-term it’s not a good investment. Short-term? Maybe.
Here is a little list of Reddcoins pros and cons:
| Pros | Cons |
|---|---|
| +Proof of Stake | -Big supply of coins |
| +Easy to use | -Not great for the long-term |
| +Loyal Community | -Nobody really knows the team behind it |
Your opinion?
I hope this helped you understand little bit more about Reddcoin. If you still have questions, be sure to comment them down below!
Also, we would love to hear your opinion on Reddcoin! Comment it down below too!
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