Is Factom a Good Investment for 2018? Factom explained in 5 minutes



A quick investor’s look at Factom (FCT) for 2018 and onward. Remember to do your own research as I am not trying to provide financial advice nor am I a financial advise.

Factom uses blockchain technology to provide a record-keeping system. And since it is on the blockchain it will be secure and unalterable. This way both users of a transaction will have transparent and easy access to the information. It secures data, but it does not store data. It hashes data so it can be traceable, trackable, and unalterable. It can be used for smart contracts, databases or other digital assets. It has a lot of potential to grow in market cap as it’s only rank 73 with a market cap of 402 million and it seeks to tap into the data security industry which is huge and it has potential to corner this market, but like always remember the key word is potential, there is never a guarantee,

It looks the coin isn’t often spoken about, and marketing of it in general is lower than many other cryptos. It is slowly gaining traction, but most people have not heard of Factom or have decided not to invest since the price has been relatively stagnated until recently. Currently, I’m not exactly sure whether this is a good thing or a bad thing at the moment. Since it isn’t well known at the moment, most people can have the opportunity to pick up the coin and watch is steadily rise, and if a news article, or major partnership is announced then it also has the potential to moon as newcomers are first hearing of this. On the other hand, a lack of marketing will hurt adoption and overall engagement in the crypto community. Plus, communication in general usually good for the crypto. Now, there may be a reason for this as this is not exactly for your average user, and they seem to be only catering their needs to potential clients or users of their protocol, but community engagement is usually always a good thing for price and adoption.

As for the supply, FCT is constantly replenished so Factom’s relies on a large number of clients that will need to use it to make up for the constant replenishment of FCT. But on the other hand if the project is successful we will definitely be looking at many corporations and banks and whatnot will use Entry Credits on a large scale as secure data is always needed. I’ll be going over Entry credits in just a few moments.

As for FCT itself, it will have value as it is an essential part of the protocol. First off, clients will buy in with Entry Credits and easiest and most cost efficient way to obtain entry credits will be to burn FCT. So basically, as the platform grows and it is used more, people will burn more and more FCT for entry credits and the remaining supply of FCT will go up due to supply and demand. Again, there will be replenishment of FCT every month so it isn’t completely inaccessible but overall, it’s success seems to be based on adoption and usage by their clients and users.

There are also a number of possible concerns that I should address as well. First due to the cost of inserting data into the blockchain a cost is required, like many other cryptos, a spam attack isn’t necessarily effective. As for incentives to keep the network safe and usable relies on them having near 32 servers that moderate transactions. The cost of running these servers will be rewarded and it encourage more competition and quality due to the profitability of it. Adoption will probably be the hardest issue for them, but let’s see if they’re up to it. They said they would are now starting to cater to the community more, so that’s a good step.

As for whether they have a working product, they have a product out called Harmony. It is tackling the mortgage industry by providing regulatory auditing and litigation, quality control, and cheaper costs overall for file transfers, loan sales, or whatever. All the costs banks have to go through for mortgages add up very quick, and harmony will be a very attractive and realistic offer for them. Basically from the origination of the mortgage to its completion, Harmony will be able to securely and easily keep track of all this information.

And like always, we should talk about the team. Their team is a good one, actually most crypto teams are good, but Factom in particular have people who have expertise and connections in their field so adoption and number of partnerships will be numerous despite their lack of marketing to the general public.

So overall, I think Factom is an interesting and unique take on the blockchain, and it may be a good opportunity, but remember, ALWAYS do your own research before you invest in anything, for all you know, I could be a paid advertiser, please do your own research!

Website: https://www.factom.com/
Whitepaper:https://github.com/FactomProject/FactomDocs/raw/master/Factom_Whitepaper.pdf

My website: https://aneutralobserver.com/
My twitter: https://twitter.com/TechJohnnyYT
Another one of my videos: https://youtu.be/1IRMB7ynGko

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