The Maker coin, as we have explained in our beginner’s guide to Maker, is a great spin on traditional stablecoins like Tether. It is a stability coin that controls volatility in pricing by putting place an algorithm to keep the prices of the MKR and DAI coins in check. While it is indeed a very unique concept, we must ask ourselves this question, will this idea be all too sustainable in the long run?
In this article, we shall quickly review the reasons why we believe you should go for Maker and reasons why you should hold back. If you need clarifications with regard to how the MKR and DAI coins work, you might want to have a look at our article “10 Features of Maker” to understand the whole thing better.
Why Choose Maker?
The Maker token has several advantages over other players in the crypto market. The MKR is backed by one of the top crypto coins in the market, Ethereum’s cryptocurrency Ether. Moreover, the appropriate governance of the Maker system is guaranteed as the Maker network is run on a democratic basis, where the users vote and determine how the system should be conducted. This also makes sure Maker has one of the key qualities that is a must in any crypto coin: decentralization.
Perhaps the most important factor that should lead you to choose in favour of Maker is its in-built stability factor. While the crypto market in general is known for the temperamental ups and downs in pricing and market cap for most coins, Maker, in terms of its algorithm, is protected against such radical changes. This stability factor gives it a unique value as a cryptocurrency that people can trust and rely upon.
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Future of Maker: Is There Any Cause For Concern?
For a market as unpredictable and volatile as that of cryptocurrencies, it is always safe to say that the future is largely uncertain. Therefore, while Maker has managed to somewhat overtake the problems of volatility through its stability characteristic, are there still some factors that could pose a future prospects? Experts believe there are a few.
Since the Maker pricing is somewhat, if not entirely, dependant on Ethereum’s market performance, an Ethereum black swan event could adversely affect and disrupt Maker’s performance, and threaten its long-term chances.
Moreover, the fact that Maker’s collateralised derivative procedure involves some extremely complicated and convoluted steps, can have a dulling impact on its adoption rates, and subsequently, its price levels.
You May Also Read: 10 Differences Between Ethereum and Ethereum Classic
Price Prediction of Maker for 2019
Maker is expected to do rather well in 2019, provided you don’t take a high-volume, long-term risk with the crypto coin in question. While experts believe that over the course of 2019, the price of Maker is going to move to a value almost double its current price of $426.48 USD (information derived from Coinmarketcap.com, as of press time) to around the range of $720, one should also be prepared for a turbulent journey upwards. We have seen Maker fall from as high as the $600 USD this year, so next year is not expected to be all too different in terms of price rises.
The price will rise, but investors are cautioned to be careful about how much of their portfolio they dedicate to Maker, selling off portions in case of a positive price rise. However, for all those of you wondering, if Maker coin can surpass Bitcoin, the answer is a resounding “no”, at least in the foreseeable future.
Here Are A Few Other Articles For You To Read:
5 Things You Should Know About Blockchain
10 Reasons To Buy Bitcoins in 2018
How to Sell Your Bitcoins?
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