Value investors are always on the lookout for the next big cryptocurrency that is currently significantly undervalued. While I’m not a financial advisor of any sort, I am an avid follower of the crypto market, and I think there is a good case for value investors to check out ICP.
What Is ICP?
The ICP token (Internet Computer Protocol) is a multifaceted cryptocurrency used by the Internet Computer ecosystem.
- It functions as a governance token, allowing investors to vote on proposals that impact the Internet Computer ecosystem.
- It functions as a reward for data centers.
- It is used to pay network transaction fees (which are set at .0001 ICP, currently just a fraction of a cent).
ICP has been trading at less than 30 USD per coin over the past few days, which is a price at which investors may see it as a good deal. Of course, to know something is selling at a discount, you need to understand its value, so let's examine a few strengths that lend future value to ICP.
What Gives ICP Strong Future Potential?
A coin is only as strong as its utility, so let's examine the ecosystem that ICP is associated with. Here are a few reasons forward-thinking investors may be bullish on the Internet Computer.
- Disruptive Technology - You hear this a lot of times in the tech industry as a buzzword. However, the Internet Computer has the potential to disrupt the market. Part of the goal of the Internet Computer is to offer on-chain services such as web hosting. Thus, it positions itself as a competitor to AWS, GCS, and Microsoft Azure. The sheer speed and affordability of storage on the Internet Computer make widespread adoption possible.
- Web 3 and Decentralization - Here are some more buzzwords in the industry. Again, the Internet Computer offers real solutions rather than simply flashing the words around to attract attention. The recent vote to allow canisters to store ICP has opened up a whole new world to dApp developers. From coin swaps and liquidity pools to web development tools and NFT games, the number of dApps running on the Internet Computer is about to grow exponentially. Coindesk even commented on the potential for Web 3 tokens outperforming DeFi tokens.
- Gas-free NFTs - NFTs are a hot topic, and many cryptocurrencies focused on the metaverse have performed well lately. The Internet Computer offers gas-free trading (just the .0001 network transaction fee is required). For NFT buyers who spend hundreds per transaction on the Ethereum chain, that may seem like the NFT promised land. Plus, huge sales attract attention, such as a Poked bot that sold last month for 3,000 ICP (approximately $90,000). Seneca (of Bored Ape Yacht Club fame) recently released some new NFTs at DFINITY's Iconoclast exhibition. While the artwork is minted on Ethereum, it is stored on the Internet Computer. Why? The Internet Computer's advanced technology allows for larger file sizes. And Ethereum is not the only blockchain with which the Internet Computer strives to work in tandem.
- Bitcoin Integration - We've saved what is arguably the best news for last. Voters approved Bitcoin integration. What does that mean? Unlike Ethereum, there is no such thing as smart contracts on Bitcoin. That's why you never hear about dApps or NFTs on the Bitcoin blockchain. The Internet Computer is changing all that by integrating with Bitcoin to provide smart contract capabilities. Some believe this integration will be what causes the ICP token to reach its full potential value.
What Does the Future Hold for ICP?
While there is no way to predict the future, 2022 looks to be a bright year, full of technological advances, blockchain integration, and disruptive technology for the Internet Computer. These are good reasons for value investors to keep an eye on ICP.