Qtum (pronounced Quantum), is a hybrid of both Bitcoin and Ethereum; they use Bitcoin’s value-storing properties to deploy Ethereum styled smart-contracts on their platforms.
While smart contracts are nothing new for bitcoin, Counterparty XCP did exactly this and was released in 2014, before Ethereum, as direct competition but failed to gain popularity because Ethereum had better marketing. XCP was, at the time, no way inferior to Ethereum.
Ethereum, on the other hand, is fighting back against the newcomers and their ineptitude. Crypto got way too big, way too fast and no one was ready for 2017, it was wild. Nevertheless, we have been bullish on the coin since inception, Ethereum upgrading to Ethereum 2.0 is just icing on the cake.
The Qtum roadmap for 2020 is very ambitious and warrants a further look into this coin to see what value can be found. The Qtum project has the ticker QTUM. In this Qtum price prediction, we are going to analyze everything about the project to help you determine whether or not it’s a good investment for you.
The team was founded by Patrick Dai, Neil Mahi, and Jordan Earls. Patrick Dai, Co-Founder, and CEO was placed by Forbes on their China’s 30 under 30 list in 2017. He abandoned his Ph.D. in Communications and Information in 2012 to focus full his time on blockchain technology. Patrick Dai previously worked at Alibaba.
Neil Mahi, Co-Founder & CTO, holds a Master’s degree in Business Administration and later specialized in computer science. He was a professional poker player and speaks four languages.
Jordan Earls, Co-founder & Lead Developer, has been developing software since he was thirteen years old. He has reviewed over 100 altcoins and identified various exploits across multiple coins. Miguel Palencia, CIO, has developed block explorers and worked on mining pools.
The Qtum team has a deep understanding of computer science, development processes, and telecommunications technology. Their business acumen was acquired working for Alibaba, Tencent, Baidoo, and Nasdaq. A large portion of their team has previous blockchain experience.
The team’s deep understanding of telecommunications has steered this project towards mobile-based applications, that can deliver if and when needed by businesses. The team is well funded with a strong group of investors. This project can go the distance even with a protracted bear market that could last a few more years.
From a development point of view, this project is slowly producing a product that could deliver massive returns. Unfortunately, a successful investment is a lot more complicated than just technology. Their marketing is good but we haven’t seen anything that screams etherium killer, let alone top 5 market cap coins.
How Qtum works
Qtum is a blockchain 3.0 blockchain. Bitcoin was version 1.0, Ethereum was version 2.0. Qtum has taken the best parts of both Bitcoin and Ethereum. They have taken Bitcoin’s code and changed the consensus algorithm from proof of work POW to proof of stake POS, along with other modifications.
Next, they took the Ethereum virtual machine EVM and placed that inside their blockchain code. This allows them to run Ethereum smart contracts on the Qtum blockchain. The Bitcoin and Ethereum parts of Qtum can’t talk to each other directly and have to go through Qtums custom-designed Account Abstraction Layer or AAL. I will discuss that more on that in a bit.
The Bitcoin Part
The Bitcoin blockchain uses UTXO or Unspent Transaction Output to process transactions. These transactions don’t keep track of account values. They are your account balance, each UTXO you receive is a credit associated with your private keys, all of them combined to form your account balance. Each UTXO you send is a debt of your account balance.
UTXO works with inputs or pre-transactions and generates outputs or post-transaction. Pre-transactions consist of all the debit transactions that will be processed for that block plus the fees. Once the block is successfully processed it will generate post-transactions consisting of all the credit transactions. This includes the previous miner’s rewards and fees which, is called a coin base.
The last step of UTXO is creating a transaction to pay the fees and block reward to the miner for correctly processing the data. The fees and block rewards are called the coinbase and form the first transaction in the next block.
Since the coinbase forms the first transaction in the next block, empty blocks are not truly empty and this is why empty blocks can be mined. The successful miner of the last block also has the first-mover advantage of being able to process an empty block as all other miners have to still download the generated block before they can continue.
UTXO forms the core of Bitcoin and forms the core for Qtum source code.
The Ethereum Part
Ethereum, on the other hand, uses an Account Model that does track the accounts’ Ether balance. The account model also tracks the account’s contract code and the account’s storage, if it uses either of these. Qtum uses the Ethereum Virtual Machine or EVM directly on the Qtum blockchain.
Qtum has its QRC-20 tokens, which act much the same as ERC-20 tokens. Some Qtum wallets can even create QRC-20 tokens by simply utilizing the built-in smart contract templates. The complexities of Ethereum can be viewed here before you buy and read the book you should read this article.
Connecting The Bitcoin Part To The Ethereum Part
The Qtum UTXO can’t directly communicate with the Ethereum Account Model and in turn the EVM. To solve this Qtum uses the Account Abstract Layer or AAL to connect them. This allows for a UTXO system to be able to process the Ethereum smart contracts.
AAL bridges the gap between these 2 technologies, offering scalability to the EVM and leverages the reliability of the bitcoin code. This creates a platform for businesses to apply smart contracts in a reliable, scalable way.
Their choice for integration is an interesting one. While newer projects choose to reinvent the wheel so to speak, Qtum used what was available to create something new that would still challenge the way we view and use cryptocurrencies. Their ideas to shape this coin previously and going forward are something to watch out for.
Qtum uses POS as their consensus mechanism with no minimum to stake, this allows for equal opportunity. An argument has been put forth that users staking lower amounts pose a security risk as they may not be technical users. This is untrue, users staking any amount of Qtum could be nontechnical and pose a security risk to the network by confirming incorrect transactions.
There is a large list of people who invested over 6 figure amounts in various projects and simply lost their assets due to negligence. Assuming a users’ technical understanding of security protocols, based on their investment amount, is discriminatory. Nontechnical users come in all shaped and sized wallets.
Everyone deserves the right to invest in any project and gain rewards from such actions without being extorted by limits that force users to share the reward with a third party who has more coins and can stake. This is simply classism on the blockchain.
If any users feel they are informed enough and that they can do it, they should do it if they understand that they could lose everything. We don’t advise users to stake coins because of the volatility of the market and the fact that most coins have lost considerable value over the last 2 years. Any staking rewards gained, would still not make up for the losses.
We advise everyone to use hardware wallets for every coin wherever possible. Unfortunately, hardware wallets are not staking compatible. Staking also locks up your coins and limits your ability to have highly liquid assets.
The counter-argument for staking is long term time horizons of 5 to 10 years. Consult a security/ programming expert and carry on doing what you think is best, just as long as you’re willing to lose all your coins. The old saying, never invest more than you are willing to lose. Mistakes happen and hackers hack.
Ethereum EVM allows for smart contracts. This does not mean the contract will execute correctly or won’t be broken by edge-case vulnerabilities. Qtum will resolve these types of issues with their x86 architecture compatibility.
Qtum uses POS instead of POW this reduces the networks need for expensive power-hungry mining equipment. They also allow anyone to stake. Qtum uses a DGP decentralized governance protocol, through DGP, QTUM owners can vote or change to the protocol and upgrade the baseline code, no hard forks are necessary.
As much as we think Qtum is a decentralized blockchain, their nodemap paints a different picture, South Korea alone has half of all the nodes. If you further combine the top 5 countries’ node amounts; South Korea, the United States of America, China, Japan, and Germany, this amounts to 80% of the network. Not decentralized by our standards. This is to be expected considering the current economic climate of the crypto ecosystem.
Qtum was initially an ERC-20 token. The ICO took place from the 14th of March 2017 to the 19th of March 2017. They managed to raise $15,664,829 and the company is based in Singapore. At the time of the ICO, each token had a price of $0.307
The initial supply was set at 100 million tokens, distributed as follows: 51% was distributed to the crowd sale investors, 8.0% was distributed to the angel investors, and 12% will be gradually distributed to the Qtum team members over four years. Additionally, 9.0% of the initial supply was allocated to the marketing budget and will be released over a two-year period, and 20% of the tokens were reserved for business development and will also be released on a gradual schedule.
Qtum is still trading well above the ICO price, even after losing more than two-thirds of its USD value from $3.17 on the 17th of February 2020 to wicking past the $1 parity mark on the daily time frame.
Qtums Target markets are industries that wish to move from legacy systems to blockchain smart contracts solutions. This could increase automation and decrease cost while offering decentralized applications that can be used all over the world.
Qtum is not the only blockchain 3.0 service. EOS, Cardano and maybe Ethereum, if they can resolve their scaling issues using sharding and move to POS, are all fiercely fighting for market dominance. EOS and Cardano are working on a whole new way of thinking, designing their blockchains from scratch. Qtum took another approach improving what was already available.
Next, we need to look at coin ranking by market capitalization and 24-hour volume. EOS is ranked 8th with a market capitalization of $2 billion and controls 2.51% of the market’s volume ranking 5th, Cardano is ranked 14th with a market capitalization of $750 million and controls 0.07% of the market’s volume ranking 32nd. Cardano does not look healthy from a trading point of view, their trading volume is way too low for its capitalization rank.
Ethereum is crushing EOS, Cardano and Qtum. Ethereum is ranked 2nd with a market capitalization of $14.5 billion market capitalization and controls 10.24% of the market’s volume ranking 3rd. Ethereum’s success is not necessarily a bad thing for Qtum. If they can capitalize on this in the minds of prospective clients, their platform can use the same contracts and will be to cheaper to run.
Ethereum has the brand name and is known as the smart contract platform. They have established the Ethereum Enterprise Alliance. They have the backing of the market, ranked as the number 2 cryptocurrency. They are on track to release Ethereum 2.0.
Qtum lacks an alliance of businesses, Qtum is ranked 41st, with a market capitalization of $121 million and controls 0.26% of the market’s volume ranking 18th. These metrics are respectable, while the coin’s value does not show that much market interest, the traded volume tells another story or sellers fighting buyers.
That last metric we need to look at is their value since all-time high. EOS is down 90.2%, Ethereum is down 90.8%, Cardano is down 97.5%, and Qtum is down 98.8% by contrast Bitcoin is only down 68.3% a true market leader.
Looking at these metrics we can see that Ethereum and EOS are doing great compared to the greater market. Cardano is the worst out of the bunch; the displacement of market capitalization compared with 24hour market volume is a red flag. Qtum is not doing much better, if we were looking at these metrics alone Qtum is not a worthy investing.
Traders can take great advantage of the trading range that has formed by simply buying the bottom box and selling close to the top. Traders also know when to get out of their way using stops to limit losses.
Qtum Coin NEWS
From a news point of view, Qtum has committed to produce weekly updates that list their platform development. These updates are very informative and get to the point of what is happening across the platform.
Each of the weekly releases is broken up amongst various tops, detailing their entire platform; Qtum core, which consists of QIP Qtum Improvement Proposals, Qtum Neutron and x86 Virtual Machine which is the smart contract platform.
Qtum has its version of the Lightning Network. They are using Bitcoin code as the underlying layer and can advance the platform from multiple fronts, not just the EVM but also the transactional aspects of Qtum.
They also release information about the Qtum.info Explorer and various wallets, Electrum wallet, web wallet, new wallets, and their web wallet.
Additional information is also available about the Qtum SDK software development kit, which is a collection of software development tools that can be used to work on any of Qtum listed news items. Qtum is completely open-source. They also have a bounty plan for developers, which is nice unless that vulnerability can be sold for a lot more in the wild or used to empty wallets/stacked coins.
The SDK offers a native wallet and a smart contract management solution. These 2 aspects allow for a smoother transition when a business decides to use Qtum. The last two things that they report on weekly, is Qtum testing and any documentation released to the public or developers.
If you had to review the last 2 months, you would be shocked by the amount of work this project has produced. We feel their development is on point and this alone should keep long term investors comfortable with their positions. If they bought at the ICO price.
Qtum Price Prediction 2025
The 2018 bear market is still in full swing. The halving doesn’t currently look like it’s going to affect the price of Bitcoin, this could change tomorrow. With the current state of the global economy, we can see a bullish case for smart contract platforms that can automate business processes.
Qtum is in a precarious position at the $1 level if this breaks with a daily close we could see more of the same to the downside with massive selloffs. On the other hand, $1 is a strong psychological support level, that has only seen wicks through this amount on the daily chart. The current range from $1 to $5 could be considered a Wyckoff accumulation range but this is over-simplistic and optimistic in our opinion.
While the broader crypto market is highly volatile at the moment, backing this horse seems more like gambling than investing. We would be happier waiting for the whole crypto market to push higher.
While we love crypto and want everything to moon always, businesses are not ready for full adoption because their business processes do not need to be upgraded, shareholders want profit every quarter. Research and development costs a considerable amount of money and would eat into possible shareholders dividends.
With the current global market decline centered around human contact, automating everything and trusting a blockchain to keep everyone honest, does seem like a reasonable expense and could result in mass adoption. We can’t say if Qtum will be the blockchain of choice under such circumstances but they would be for some companies.
Qtum has an entry in Investopedia that puts a smile on my face as we conclude. We don’t think it’s improbable for Qtum to reach it’s previous all-time highs in USD valuing Qtum at $2.6 billion. Each coin would be worth $26. In the short term, this is very hard to imagine.
Looking into the other major pair, if QTUMETH reaches its previous high of 0.09 and ETHUSD is valued at $100, the market capitalization would be $0.9 billion. Each Coin would be worth 9$.
QtumBTC recorded a previous high just shy of 0.005 if it manages to claim this new level and BTXUSD is valued at $5000 the total market capitalization would be $2.5 Billion, each coin would be worth $25.
We can see our predictions as moon math and are very happy to also look at the base case.
Qtum breaks and shatters the $1 mark, plummets to $0.30 and ranges between $0.25 and $0.35 for multiple months. ICO holders get nervous and start to sell every time the coin’s value pops up to break even at $0.307 or $0.35 and gets smacked down repeatedly.
The Bitcoin and Ethereum ships set sail at the start of a new bull run but panicked investors can’t get out of their way and continue to sell this range. Until finally only the strong hands remain and the project goes bust or starts to rally.
Looking at the investors we might see strong hands double down at this level. Qtum investor includes; KR1 Isle of Man, Advance. Fund United Kingdom, NueValue Capital Singapore, Collinstar Capital Australia, Decentrust Capital, Parallax Digital United States, Tally Capital United States, Zhi Zi Fund British Virgin Islands, Jove Capital China, Gama Capital, MYriad Capital Management United States, HyperChain Capital Singapore, Blocktree Capital United States, Nirvana Capital China, Continue Capital, How 2 Ventures United States, Asymmetry Asset Management South Africa, Block VC China, Solidum Capital Slovenia, HASHED South Korea, and Kenetic Capital.
They could also throw in the towel to recoup losses but we doubt this, as some investors invested in Qtum before the ICO. This is all speculation, with the current market anything is possible. QTUM could moon into outer space or simply fall off a cliff from a price perspective?. Considering where QTUM has fallen from, at least it doesn’t have far to go.
We would caution anyone with QTUM or intent on buying QTUM for the long haul, to do their research. He said she said doesn’t help anyone when your position is underwater and sinking fast. Your trading and investing capital is your responsibility.