I admit it. I have never really been on the crypto train. While I can still fully appreciate the potential of cryptocurrency’s underlying blockchain tech, simply creating an unlimited number of unregulated currencies out of thin air can set the stage for a disaster. Everything has prompted a reaction of some sort. Often, those reactions have unpredictable and undesirable outcomes.
However, there are some up-and-comers that have caught my attention of late. Of the two cryptos in question, I may end up actually taking a chance on Stellar Lumen.
A clear purpose
Ever since they have moved into the mainstream light, one of my main hang-ups with cryptos has been their limited degree of practical uses. For a cryptocurrency to have success as an alternative to fiat money, enough sellers need to be willing to accept it as a payment form, and there needs to be enough buyers that are willing to use it as a payment form. That has been the main reason so many cryptos and related stocks have been having difficulties lately: Not enough participants could agree on which of the numerous altcoins out there are the ones that should be utilized. Most of the first ones were established without have a particular usage in mind.
Stellar Lumens is not hampered by that philosophical flaw.
Established back in the year 2014 on its own built-in coin called the lumen, Stellar’s network is created from the ground up to let large organizations easily do cross-border, cost-effective business. And they have. Over the course of the last seven years, the platform has had over 450 million transactions, letting payers make their payments in their local currency and payment receivers to receive payments in their local currencies.
Cross-border deals are able to get done for dirt cheap in just minutes; users only have to own one lumen to do a deal, and transactional fees begin as low as 0.00001 lumen. It would not be out of line to describe this as the world’s most complete, fastest and most cost-effective foreign exchange. The lumen coin and its corresponding blockchain network make sure it all happens in the right way, squarely and fairly.
The best part of this is that Stellar works with any type of currency out there, fiat and any others. The stablecoin USD Coins, for example, is compatible with the Stellar Lumens network as well.
Stellar Lumens is in limited supply and good company
The Stellar platform’s has the right support to later become the platform of choice among the world’s main players though. Tech goliath International Business Machines which is better known as IBM, is partnering with Stellar to provide IBM’s corporate customers with cross-border payments, touting the network’s lower usage costs and speed. MoneyGram, Knabu Bank and Liquid Mortgage are also working directly with Stellar Lumens to make cross-border deals quicker and easier.
At the very least, would-be buyers are able to embrace the fact that there will be no more of this cryptocurrency mined, while diluting the float in the process. If a business wants to dive into the Stellar network to use its very impressive payment capabilities, it is going to have to purchase some in the open market. That is a bullish backdrop, not to mention a great start for today’s owners.