Is Decred a Good Investment?

tl;drDecred is a blockchain-based cryptocurrency with a strong focus on community input, open governance, and sustainable funding for development. It utilizes a hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) mining system to ensure that a small group cannot dominate the flow of transactions or make changes to Decred without the input of the community. DCR plays a key role in maintaining and operating the Decred network, and consensus participants are rewarded in DCR for expanding resources to secure the network. So, while DCR can be sent, received, and held, the tokens may also be staked to vote on future project developments and to participate in the consensus process. Decred was created by copying Bitcoin’s code and thus the cryptocurrency offers similar features, with varying modifications. For example, Decred’s block time is 5 minutes long (compared to Bitcoin’s 10), its mining difficulty adjusts roughly every 12 hours (compared to Bitcoin’s two weeks), and its block reward is allocated to miners, stakers, and a treasury (as opposed to 100 per cent issued to Bitcoin miners). Decred`s ROI underperformed in 'Cryptocurrency, Governance, Privacy Coins' categories which had 965% growth over the past year in this writing, and underperformed in the crypto market which had 3764% growth over the past year. If you like to learn more you can read here. Decred's Popularity shows that Telegram shows that it has a good growth rate of 11%, however, Twitter Growth Rate of a 9%, and Reddit with an 8% growth rate, lower than Telegram. It shows that Decred's marketing team should work more on their social media to have better values later.
Is Decred a Good Investment?
Is Decred a Good Investment?
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Introduction

Decred is a blockchain-based cryptocurrency with a strong focus on community input, open governance, and sustainable funding for development. It utilizes a hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) mining system to ensure that a small group cannot dominate the flow of transactions or make changes to Decred without the input of the community. A unit of the currency is called a decred (DCR). Stakeholders make and enforce the blockchain’s consensus rules, set a course for future development, and decide how the project’s treasury is used to fund it. Decred’s blockchain is similar to Bitcoin’s, but with major aspects of governance baked into the protocol.

DCR plays a key role in maintaining and operating the Decred network, and consensus participants are rewarded in DCR for expanding resources to secure the network. So, while DCR can be sent, received, and held, the tokens may also be staked to vote on future project developments and to participate in the consensus process. Similar to other cryptocurrencies, the supply of DCR is limited, meaning that according to the software’s rules there will only ever be 21 million DCR. Of note, DCR tokens are issued every 5 minutes with the amount released decreasing by one percent every 21 days.

How does Decred work?

Decred was created by copying Bitcoin’s code and thus the cryptocurrency offers similar features, with varying modifications. For example, Decred’s block time is 5 minutes long (compared to Bitcoin’s 10), its mining difficulty adjusts roughly every 12 hours (compared to Bitcoin’s two weeks), and its block reward is allocated to miners, stakers, and a treasury (as opposed to 100 percent issued to Bitcoin miners).

Hybrid Consensus: PoW/PoS

Central to Decred is its hybrid Proof of Work (PoW) and Proof of Stake (PoS) consensus mechanism that keeps the distributed network of computers running its blockchain in sync. Similar to other PoW cryptocurrencies, Decred miners expend energy to solve computational puzzles to validate transactions and add blocks to the blockchain.

Decred’s PoS then allows those who stake DCR to validate and confirm those transactions and also participate in the network’s governance process. Stakers are given ‘tickets,’ a non-transferable asset specific to the Decred network, with 20 tickets being available for each block. Five of those tickets are then randomly chosen, and their owners then validate the correctness of blocks proposed by miners.

Once blocks are finally settled and added to the blockchain, the block reward is issued to the parties involved as follows: 60% to miners, 30% to stakers, and 10% to a treasury.

Politeia

Politia is a governance system implemented by Decred that aims to create an open environment for new ideas and a voting system for accepting and implementing them. Users who wish to offer potential upgrades or policy changes can do so using the Politeia public proposal web platform that facilitates the submission, tracking, and discussion of suggested changes to Decred governance. 

Financial Analysis

The following graphic resumes the token price since 2016. We can see that the token price experienced the first rise in 2017, taking advantage of the general boom around digital assets. Then, in the space of barely three months, the DCR token saw its price divided by nearly 3. Before rising again and resuming the price which was at the end of 2017. From May to December 2018, the token experiences a second strong bearish phase which will again make it lose nearly 80% of its value. Before experiencing a long phase of stagnation which will last until November 2020.

Once again carried by the uptrend in the cryptocurrency market and the rise in the price of Bitcoin, the token explodes again. With an upward and exponential trend from November 2020 until mid-April 2021. In just over 6 months, DCR drops from $ 12 to nearly $ 240. Or a multiplication of the price by 20. As often with cryptocurrencies, the correction phase is very violent. From May 12 to 23, the token then loses more than 60% of its value, again falling below the symbolic threshold of 100 dollars.

Decred`s ROI underperformed in 'Cryptocurrency, Governance, Privacy Coins' categories which had 965% growth over the past year in this writing, and underperformed in the crypto market which had 3764% growth over the past year. If you like to learn more you can read here.

Decred's Popularity shows that Telegram shows that it has a good growth rate of 11%, however, Twitter Growth Rate of a 9%, and Reddit with an 8% growth rate, lower than Telegram. It shows that Decred's marketing team should work more on their social media to have better values later. if you want to see the chart and its values, you can read them here.

Today, a DCR token is exchanged on the markets for 171 dollars after a one-week bullish(Up-trend) phase. In terms of market capitalization, the project is at the end of the top 50. It is currently in the 48th position. For a capitalization of around $ 2.2 billion. However, the chart has a 46% Liquidity Score that it must be easier to sell Decred if the chart will continue to Up-trend form. You can read more if you like and see the chart here.

You're saying that I should invest in Decred Network?

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