Golem is one of the most talked-about crypto projects for the past couple of years. But just how high can GNT actually get? In this Golem 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.
What is Golem (GNT)?
Golem (GNT) is an Ethereum based project, focused on sharing computer power. Their vision is to create a decentralized global supercomputer. Allowing users to rent out idle computer, laptop, and server resources. These include various computing components including CPUs, hard disk drives, RAM and GPU’s (Graphics cards).
The use cases include but are not limited to CGI rendering and other VFX (visual effects) processes for the movie and advertising industry, Machine Learning, Scientific computing, Video Transcoding and many more. This bodes well for the Golem price prediction.
How Golem (GNT) works?
The requestor (person who needs the work done) sends the task to the Golem network. They then select a provider or providers (computer responsible for working on the task) based on resources and their trust level within the ecosystem.
The Task is broadcast to the provider or providers, who completes the computations and returns them to the Golem Network. Data packets are reassembled and sent back to the requestor. Payment is sent via smart contracts to the network and distributed to the provider or providers.
The Golem team:
The team consists of 31 members, stacked with software engineers. Piotr Janiuk is the acting CEO, CTO, and Co-Founder. Aleksandra Skrzypczak is the acting COO and Co-Founder. Both previously worked together at Imapp since 2014.
The Golem project timeline has not gone as expected. The team has produced a functional Brass Golem, running on the main net. Golem is ready to download and use. Brass Golem is the 1st stage. They have also started on Clay Golem, the 2nd stage and Golem Unlimited which is almost production-ready. There is still a long way to go. The team has been working on Golem since 2016.
Their Github is alive with commits (commits show changes to the code, revisions, and updates), this project is very much alive and pushing to change the way complex computing problems are handled.
The strong team and Github commits push the notion that this app will do well in the future adding to a positive long term price prediction. Their lack of meeting deadlines does the complete opposite for the price prediction.
Delays in program development aren’t a bad thing if the finished product is stable and performs as expected. Financial constraints don’t seem to be a problem yet for Golem meeting their goals despite the delays.
What is the value proposition of Golem (GNT)?
GNT is a well-established project, with a ready to use product. This product has interesting and practical use cases and makes business sense if they can deliver cheaper than their competitors. GNT makes this claim but this needs to be reviewed on a use case by use case basis.
There have been complications and delays in the completion of the project and the market has lost interest since 2017. The negative price since 2017 is a direct result of this. This does not mean any of the many use cases have been solved by the current market players. Golem seriously needs to take on proven businesses to demonstrate their use cases and not merely survive but thrive. Marketing is key in this respect.
Golems marketing has been terrible at getting the technology into the hands of users who could greatly benefit from this product. The capital outlay for a new computer or server is crippling to most new and some established businesses. Businesses are constantly worried about overheads and cashflow.
Renting is the logical choice as this reduces idle time where the machine is not working and generating revenue. Golem is working on marketing but not fast enough as the team is stacked with developers. They have an outsourced dedicated marketing department.
Golems choice not to market as heavily could be for strategic reasons. They could be waiting for the right time to engage with businesses and end-users. We feel golem needs a lot of development before it is ready to compete with global cloud computing players. Golem is used actively for CGI rendering.
The potential for price volatility soon is very high. Golem has a high level of liquidity
and can easily be traded against Etherium (ETH), Bitcoin (BTC) and stable coins (USD). Golem survived the bear markets of 2018 and in 2019 the price has dropped dramatically. But the developers are hard at work. This was laid out as an 8-year project.
Quantum computing could be a serious threat in the next 10 to 20 years. This would only affect the market for shared resources minimally as the research and development costs are astronomical. The first product to market will be expensive to lease time on and could be initially used by governments and mega-corporations solely.
If the cost reductions follow the general curve of technology adoption, quantum computers could be as publically accessible as desktop computers in 40 to 60 years. This would not affect the model of GNT, as quantum computers could be integrated if development continues for that long.
General market sentiment
The general short term market sentiment is bullish. The current crypto market is in an upswing with the prices climbing higher. We are experiencing an altcoin summer. GNT has been doing well under these conditions. The medium-term market sentiment is bearish as we have not broken all-time highs. The price one year from now could be lower.
The longer-term market sentiment is bullish. Regulators are pushing for taxation. This seems to bode well for the future creating legitimacy for the whole crypto industry. Each quarter more and more companies are either adopting blockchain technology for their business or implementing them into their business processes.
Increase of Utility & Demand
A key consideration in this Golem price prediction is utility and demand. A project that has no real-world application will not have a long future.
Unfortunately, the increase in utility is slow-paced with Golem. In their defense, they are releasing a very complex product that needs to work and compete with big business. If Amazon web services fail a company for whatever reason, the perception is the IT department of that company is to blame.
Crypto products and services are held to a higher standard and if the product fails to deliver one larger institution, the ripple effect could destroy a decentralized network’s credibility. Golem has taken this to heart with an 8-year project timeline that could deliver a global decentralized competitor to the industry of cloud computing.
The current cloud computing market’s major players are:
- Amazon Web Services
- Microsoft Azure
- Google Cloud Platform
Delivering various services:
- Infrastructure as a service (IaaS)
- Platform as a Service (PaaS)
- Software as a Service (SaaS)
While these are and are not Golems direct competitors currently they do compete in the same industry to deliver services to the limited number of clients with limited budgets. Once Golem has completely rolled out Brass Golem, Clay Golem, Stone Golem, and Iron Golem. It will be directly competing with most of these companies in some way for market share.
Rejuvenated Public Crypto Interest
The bitcoin halving has reignited crypto interest in the near term. Altcoins have been pushing hard to steal Bitcoin dominance (The value of the total market compared with Bitcoins value expressed as a percentage).
The higher the dominance percentage value generally means that altcoin prices will be lower as investor confidence has shifted to Bitcoin over other altcoins. Additionally Dapp’s have been doing extremely well. Both in financial transactions and applications built.
Funds are flowing into the Ethereum network. Developers are flocking to build on smart contract blockchains as universities are focusing more heavily on crypto development in their computer science and business departments.
Etherium is a commodity and not a security, Golem is an ERC20 token on the Ethereum network. This has been one of the reasons Dapp’s have expanded in production and use.
Ethereum’s DeFi (decentralized fiance) has benefitted from this greatly. This success has led to hasty development and edge-case vulnerabilities. DeFi needs immediate solutions as their dapp has had some serious exploits recently and throughout it’s past.
This could be blamed on the community of decentralized exchanges and users needing to try out new products and services immediately before security experts test them effectively. The root cause has more to do with the pace of development, it’s frantic and decentralized. This decentralized non-coordination makes it nearly impossible to secure these smart contract blockchains completely.
In this respect, GNT taking time to release a complete functioning product they have tested is more positive for the price prediction than negative. Ethereums scaling issues are also a major concern that could cause this project to fail. Etherium is actively working on this issue.
Golem Price Prediction Conclusion
GNT is making progress developing cutting edge services that work today. Their development is not complete and the true power of Golem will come from their fully developed version which is years from completion. The amount of time this team may need to complete Golem is unknown and could run years past their original goal.
Golem (GNT) had an ICO each token sold at +/- $0.01 as such the Golem Team does have a seriously large reserve of ETH. Completion of the project should not be a problem if they manage their funds wisely. All participants in the ICO still have a large profit despite the GNT prices nosedive.
Looking at the charts the prognosis looks grim for Golem as the price slips lower and lower. If Golem goes below one cent their chances of survival are slim with only the most dedicated investors holding on.
The projected value of global cloud computing by 2025 will be $712.83 billion. If Golem captures 1% of this market each token could be valued at $7.12. Can GNT achieve this market share?
All long term investments should be transferred off your favorite cryptocurrency exchange and backed up by a hardware wallet. Additional backup of your hardware wallet in multiple locations.