Rather than just another cryptocurrency, Cosmos is a network of cryptocurrencies. Cosmos, which calls itself the “internet of blockchains,” enables transaction, communication, and consensus among various blockchain applications. In this Cosmos price prediction article, we will look at real technological constraints that necessitated the development of this cryptocurrency.
Even as bitcoin is taking the world by storm, and as a thousand imitators bloom in its wake, cryptocurrencies are beset by a slew of problems that hamper their widespread use in mainstream society. As the founders of Cosmos put it, the problems are those of scalability, interoperability, and usability.
To paraphrase, cryptocurrencies are inefficient in comparison to other means of transaction such as credit cards; they can’t communicate or operate with each other because each crypto is siloed off in its own virtual territory; and they cannot be adapted to serve diverse needs because blockchain codebase, in general, is monolithic, hard to parse into its constituent modules.
In a bid to fix these problems, Cosmos first separated the original codebase into three distinct modules: application, which processes transactions; network, which transmits information to all the users (or “nodes”) of the system; and consensus mechanism, which ensures that users all agree on the state and the nature of the information.
Cosmos can be visualized as a group of parallel applications (“the Zone”), each connected to the mediating hub that oversees, for each Zone, the underlying network system and consensus mechanism. Cosmos Hub has its own proof-of-stake cryptocurrency, ATOM, which facilitates communication and transaction among various zones.
Thanks to Cosmos, developers can now issue brand new cryptocurrencies without creating everything from scratch, cutting down the development time from years to mere weeks (solving; thus, the “usability” problem). Currencies can transmit data and transact business across platforms, making them interoperable. More importantly, the cryptocurrencies can now be scaled up to process more transactions than ever before.
Conventional credit/debit cards currently enjoy an enormous advantage over cryptocurrencies: Visa and Mastercard can process thousands of transactions every second, seamlessly transmitting data with hundreds of banks, while cryptocurrencies such as Bitcoin and Ethereum process less than twenty per second.
The reason is that both Bitcoin and Ethereum rely on a “proof-of-work” consensus mechanism, in which each transaction is validated through the wasteful and cumbersome process of mining. Instead, Cosmos relies on the more efficient “proof-of-stake” mechanism, in which validators stake their own currency on the integrity of the system.
Cosmos thus responds to real needs on the crypto scene: to make cryptocurrencies less siloed, less monolithic, and more customizable for developers. If bitcoin heralded the dawn of the blockchain era, and Ethereum, second-generation crypto, made the technology available for a wide range of applications, Cosmos represents the third generation of the evolution: it transcends the constraints of both Bitcoin and Ethereum, and thus inaugurates the age of scalable and interoperable cryptocurrencies.
Cosmos Historical Price Analysis
At the time of writing, ATOM is up by 10.02% and is trading at $6.60. The coin has a market cap of $1.59 billion.
Current Price, Market Cap, & Supply Details
The historical price for this particular coin has fluctuated between $1.68 at the lowest and over $8 at its peak. Throughout its history, its average price has hovered between $2 and $6.
Cosmos Future Price Forecast Predictions
Price prediction relies on careful examination of historical trends and projection of those trends in an inherently uncertain future. However, with a firm grasp of available data and prudent analysis with an eye to the ever-shifting circumstances, one may forecast with a degree of accuracy.
Short Term Forecast
Long Term Forecast
*This price prediction is based on the data collected from various sources meant strictly for educational purposes only and not taken as investment advice. Users should do their own research before investing.
Cosmos Price Prediction 2021
Cosmos is holding steady even as it reaches more users and expands its applications. As per the forecast and algorithmic analysis, Cosmos (ATOM ) is set t0 potentially be around $6.15 in 2021.
Cosmos Price Prediction 2022
Cosmos is set to scale new heights as blockchain technology penetrates more deeply in everyday fabric of society and its services are of need to a diverse client base. Per forecast and algorithmic analysis, ATOM could potentially be around $12.8 in 2022.
Cosmos Price Prediction 2025
Cosmos will continue to grow even as its services will diversify and ramify throughout the crypto space. As per the forecast and algorithmic analysis, ATOM’s price could be around $29.9 in 2025.
Is Cosmos (ATOM) a Good Investment?
To answer this question, one must distinguish between Cosmos, the “ecosystem” of blockchain, and ATOM, a currency that powers a particular area of that ecosystem. While Cosmos the “ecosystem” itself is a promising venture, that does not mean that one will profit from “hodling” ATOM in one’s portfolio in the long term.
ATOM is what is known as a staking token. You can buy and sell it or exchange it for other currencies, but that is not what it is designed to do. Cosmos, it will be recalled, depends on the “proof-of-stake” consensus algorithm. This mechanism requires validators to “stake” their currency in the system before they can verify transactions and collect their fee for doing so.
To encourage validators to stake their currency, the founders of Cosmos have designed ATOM to inflate (that is, to lose value) at a fixed rate no matter what. That does not mean that its price will not rise, but holding the currency may mean you might not be gaining as much value as you may expect.
How to Buy Cosmos?
Cosmos can be bought in exchanges such as Kucoin, Binance, Kraken, Bitmax, Coinbase, and others. These exchanges usually require their users to create an account and set up two-factor authentication. While some sites (such as Coinbase) allow you to purchase cryptocurrencies in fiat currency, others require you to possess bitcoin or ethereum already to make any trade.
More Information About Cosmos
Cosmos is not just another cryptocurrency but rather a new departure in blockchain evolution. In the future, blockchain will find use in many areas, such as gaming. With its platform that allows developers to build a range of applications, Cosmos is well-poised to serve those clients in the future.
Cosmos fills a much-needed gap in the market, and its future is one of steady growth and rapid adoption. Cosmos may one day even rival Ethereum as a favored platform for developers. Developers may favor Cosmos architecture, with its modular design and its nimble proof-of-stake consensus algorithm, over Bitcoin and Ethereum, with their bulky, monolithic codebase.
Cosmos started as Tendermint, a blockchain stack that replaced the proof-of-work consensus mechanism with the proof-of-stake mechanism. Tendermint is Jae Kwon’s brainchild, a programmer who led the team that developed the Yelp app for iPhones. Now Cosmos ecosystem hosts an array of applications created by several developers.
In summary, Cosmos is an ecosystem, or “internet,” of blockchains. It consists of two parts: at the core, there is Tendermint, a proof-of-stake consensus engine; and, on the surface, relying on the engine, there are some blockchain applications which fan out, as it were, from the central hub.
This dual, modular structure allows developers to create blockchain applications without having to create the consensus engine from scratch, which cuts down development time significantly, from months and years to mere weeks. This also allows various applications to communicate with each other and even transact business with each other.
In this way, Cosmos aims to solve the three problems that have vexed cryptocurrencies hitherto–the problems of use, scale, and communication. Cryptocurrencies have been hard to develop and harder to adapt to particular uses; Cosmos claims to have simplified the code into bite-sized, customizable chunks.
Because cryptocurrencies consume so much energy on inefficient mining, it has been difficult to scale them up to compete with more conventional means of transaction (such as cash or credit cards); Cosmos claims to have made them more efficient by replacing proof-of-work algorithms (which require mining) by proof of stake algorithms, which do not.
Finally, cryptocurrencies have been siloed off from each other, each trapped in its own ground; as a result, transactions recorded in a token of bitcoin, for example, cannot be recorded in any other cryptocurrency. Cosmos purports to solve this problem by connecting various currencies (or zones) through a hub. These transactions are powered by its own native cryptocurrency, ATOM, which is, even more than the architecture of Cosmos, the object of our concern.
However, even if Cosmos is as innovative and promising a technology as its founders claim, does it prove that ATOM is a profitable investment. Here things get tricky. ATOM is a staking coin–it is something that allows the users of Cosmos to participate in the governance of the system. To incentivize the users to spend ATOM within the system (rather than hoard it, as investors tend to do), the founders have intentionally designed the coin to be inflationary.
It is not designed to be a means of exchange, or a store of value, although it can if we want, perform those tasks too. If you want to participate in the Cosmos system as a validator, it might benefit you to invest in this currency.