About Cosmos cryptocurrency
In order for the bitcoin sector to reach its full potential, blockchains must be able to connect with one another, which is known as “interoperability.” Cosmos (ATOM) is one of numerous blockchains that addresses this issue, and some well-known crypto firms have already adopted it.
1. Cosmos is up nearly 370% this year.
Cosmos hit a new high of $44.59 on Monday (Sept. 19), but the stock has since dropped. Despite this, according to CoinMarketCap, the value of Cosmos has climbed by approximately 370 percent since the beginning of the year. It’s a significant increase, but not nearly as dramatic as the global cryptocurrency market’s total capitalisation, which has increased by about 140 percent in the same time frame.
Cryptocurrencies are notoriously volatile, causing big losses as well as massive gains. As a result, only spend money you can afford to lose and are willing to take a chance with.
2. Cosmos has been dubbed the “Blockchain Internet.”
Individual blockchains do not connect correctly with one another, which is one of the issues facing the bitcoin business. When it comes to transferring crypto-assets around the world in a simple and accessible manner, this isn’t ideal. There is no exact example, however it is akin to Walmart accepting only Visa and Whole Foods accepting only Mastercard.
3. Cosmos uses hubs to enable communication between blockchains.
Some connectivity setups make sending tokens between networks unfeasible. Instead, they make an equal number of tokenized duplicates on a separate platform, which are then blockchained using smart contracts. Instead of transmitting 5 BTCs from a bitcoin chain to Ethereum, this technique might lock 5 BTCs and release 5 pegged tokens on another blockchain, such as Wrapped Bitcoin (WBTC).
4. There are more than 255 applications running on the network.
Adoption is critical for any cryptocurrency. People must use technology for it to be beneficial. That’s why the Cosmos network now supports 255 applications, including well-known brands like Binance Smart Chain and Crypto.com.
Investors should pay particular attention to Cosmos’ fee structure. Unlike Ethereum, which makes money by charging all applications in ETH for network transaction fees, Cosmos works in a different way. Cosmos apps are purchased using Crypto.com’s own currency (CRO) rather than ATOM.
5. It is available on most major cryptocurrency exchanges.
ATOM coins are available for purchase on a number of popular cryptocurrency apps and exchanges:
6. There are other blockchains in this space as well.
Regardless of the investment, it is critical to have a thorough understanding of the competitive landscape. In the case of Cosmos, this entails investigating various methods for interacting with blockchains, including programmable blockchains.
Avalanche and Polkadot (DOT) are two more noteworthy interactive firms (AVAX). Despite operating in quite different ways, both have seen above-average price hikes this year. Since January 1, the price of AVAX has increased by about 2,000 percent.
7. Regulation could complicate the decentralized finance (DeFi) industry.
Decentralized finance refers to a group of products that do away with the necessity for financial middlemen (typically banks). This category includes a wide range of Cosmos network applications.
While these products function similarly to traditional bank accounts, regulators are concerned that they do not offer the same level of security to consumers. From the Securities and Exchange Commission to the Treasury Department, there is a growing thirst for more stringent regulation. We don’t know how this ban will be enforced, but it has the potential to affect any cryptocurrency that relies on DeFi connections, particularly if it is strictly enforced.
Cosmos is a strong coin that solves a major problem in the cryptocurrency market. Individual cryptocurrencies can thrive in their own ecosystems before merging with other blockchains to gain further benefits from interoperability. A currency does not need to fix all of the world’s problems in order to survive.
Regulatory ambiguity, on the other hand, continues to stymie the business. Cryptocurrency investors should be mindful of the market’s potential impact.