A cryptocurrency is a decentralized, digital currency that only exists online and can purchase goods and services. These are also called “digital coins” or “virtual currencies.” Cryptocurrencies have different properties, such as faster transaction speeds or more secure encryption.
Tron is one of the most popular cryptocurrencies in the world. Cryptocurrency has been on the rise lately, gaining a lot of attention in the market. Aside from the Tron Coin price, some significant factors have been affecting it and will continue to impact it in 2018.
Tron Coin is a blockchain-based decentralized protocol that operates on a peer-to-peer basis, similar to other cryptocurrencies such as Bitcoin. Its main aim is to decentralize the web’s content and free it from third-party restrictions. It allows creators and consumers to freely exchange online content and digital data without third-party involvement or intermediaries controlling or manipulating transactions between parties involved. In simpler terms, Tron is a decentralized content and file-sharing platform that rewards users for their contributions.
Tron Coin has experienced another boost after successfully conquering its hard forks and recently announced BitTorrent as its new entertainment partner. BitTorrent is one of the most used P2P software in the world, being used by more than 130 million people worldwide. It is one of these projects that has significant potential, mainly because more than 20% of traffic on the internet comes from the peer-to-peer applications.
The currency has gained more than 1,200% since the beginning of this year, increasing its value by over 1300%, which is impressive considering it had a lower value in January 2017.
Significant Factors Affecting Tron Coin Price
Since Tron is one of those cryptocurrencies that has experienced significant growth within a short time, some factors directly or indirectly affect its price.
Tron was created to be a decentralized platform for the entertainment industry with the primary objective of empowering content creators and consumers by removing the middleman. It has indeed managed to go beyond its initial objectives, and instead of just a new website to distribute content; it has the power to exceed this goal. Tron’s biggest strength is that it is not reliant on any specific company or organization. Therefore, it will not be influenced by any entity such as Google or Facebook banning some applications or platforms. Its original idea worked so well that it caught the attention of BitTorrent, one of the world’s most-known P2P software.
The first factor determining the Tron price is the coin’s market cap. Market capitalization is the real-time value of transactions within a specific crypto ruble network. The higher this value, the better a coin’s position in terms of strength and power among other cryptocurrencies. It represents the value that investors put on that cryptocurrency. The market capitalization of Tron at the beginning of 2018 is estimated to be more than $2.3 billion, which is an impressive number. It will most likely continue to rise if investors keep valuing Tron Coin.
As we know, cryptocurrency transactions are anonymous and can’t be tracked by anyone if a user doesn’t provide his personal information, such as name or bank account details, for example. This anonymity is one of the main reasons many criminals have started using cryptocurrencies for money laundering activities. Many people prefer using cryptocurrencies to real money because the digital currency can be easily transferred between parties without providing KYC (Know Your Customer) information.
The third factor that Tron price is affected by is a crime and illegal activities. To ensure that criminals don’t use cryptocurrencies for the wrong purposes, some governments worldwide have decided to impose strict regulations on them. Japan, for example, has already adopted a law that obliges all cryptocurrency exchanges operating in that country to register with the local authorities. Several banks have also created a ban list on these cryptocurrencies preventing their customers from buying or selling them. More countries will probably follow this trend this year, and we can expect stricter regulations.
Tron is one of the cryptocurrencies that any central authority or company does not currently control. It is considered resistant to the main risk factors that affect most coins or tokens. These factors include legal issues in which a government or bank can decide to freeze your account or ban you from using the platform. Other risks include network attacks, such as DDoS and 51% attacks which are now more frequent, a decline in user interest, low liquidity, and volatility.
The last major factor affecting Tron Coin’s price is its future adoption. The more we hear about different companies that want to use it as their payment method, the higher its value will be. There are already companies that have announced that they are currently implementing Tron Coin in their services and products. For example, BitTorrent has decided to integrate it into its platform. Integrating Tron Coin into BitTorrent’s platform will enable users to purchase its content directly using TRX. All the transactions will be faster and cheaper since there won’t be any transaction fees.
Tron Coin is one of the altcoins that have big potential. The industry is experiencing a boom, with many new projects every day. If Tron stays decentralized, it will continue to succeed and keep growing rapidly. Over the last year, it has experienced over 1300% growth, which does not seem to slow down anytime soon. It is a cryptocurrency that has been performing exceptionally well, and its initial idea is so good that it has attracted one of the biggest P2P companies in the world. Its future adoption by other industries should positively affect its price.
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