Why LUNA beat Bitcoin and could be the next big thing

Date:
Wed, 23 Feb 2022 14:06:11 +0000

Description:
One crypto outpaced everyone including Bitcoin. Learn more about the LUNA and how to start investing through Revix.

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The cryptocurrency industry is filled with loads of jargon and unique quirks even those with the financial know-how find the crypto markets challenging. There is a lot of crypto-specific factors that impact the growth, adoption
and returns of this emerging blockchain-powered industry.

When trying to understand the nuances of a specific cryptocurrency, it can be helpful to think of a crypto project as something similar to a high-growth start-up.

Venture Capital funds otherwise known as VCs pool together money from different investors to invest in a basket of start-ups and ask three
important questions before making any investment:

Question 1: What does this company offer that the others dont?

Question 2: Is this company showing growth and interest in its product?

Question 3: What problem does it solve and how big is the market for this problem?

Answering the same questions when it comes to cryptocurrency investing makes sense and is the approach that many professional cryptocurrency investors
take when evaluating what to invest in, explains Brett Hope Robertson, Crypto Investment Lead at Revix .

By asking these questions of the top-performing crypto of 2021 (LUNA) we get to peek into all the potential that the Terra network has to offer. What are Terra and LUNA?

The Terra network is a cryptocurrency that is different to Bitcoin but is similar in functionality to Ethereum, Cardano and Solana.

Bitcoin is a hybrid digital payments system and digital gold investment option. Ethereum, Cardano and Solana, on the other hand, are known as smart contract enabled cryptocurrencies. Unlike Bitcoin, these cryptocurrencies enable applications to be built on top of their blockchain networks just
like you have different apps that run on your mobile phones operating system.

The Terra network, with its native cryptocurrency LUNA, is also a smart contract enabled cryptocurrency but what separates it from the others is that it has a very different focus. If you look at Terra like a company, it could be seen as a mix of a bank (like FNB) and a payments network (like Visa) that aims to make banking and payments cheaper and faster.

It might be surprising to some that the Terra networks LUNA cryptocurrency
was the best performing investment over the last year returning over +14,700% in 2021. (Image credit: .)

In fact, an R1,000 investment in LUNA would have translated into +R147,692 over the past 12 months. This return on investment is over 240x greater than if you had invested in Bitcoin over the same period. The latter would have offered you an investment amount today of +R1,594.

This is an astonishing return that has made all the LUNA tokens in existence (known as the market cap of the network) worth over $20Bn. Thats roughly the same total value as the MTN and over 5x the total value of Woolworths. Astonishing returns, but what is driving this value?

The Terra network is one of the leading smart contract enabled blockchain networks aiming to rebuild the slow and expensive payment system that we have today. Terra does this through the creation and transfer of stablecoins.

Stablecoins are simply cryptocurrencies that are pegged to conventional government-backed currencies (i.e. the rand or US dollar).

The Terra blockchain network allows its users to spend, save, trade, or exchange these stablecoins instantly. All of this can be done on the Terra blockchain without the need for any banks or financial intermediaries.

The best way to simplify what Terra does is to think of it as the
foundational enabling layer for extremely unique and groundbreaking FinTech applications.

You can think of investing in Terra like investing in a basket of FinTech and banking apps, each with its specific use case and potential customer. Rather than having ownership of one app, you have the chance to own the foundational application layer that runs the most successful FinTech apps. That number of applications could grow as much as developers are willing to build on Terras network.

Here are the factors that drove LUNAs 2021 returns:

The significant technological developments of the Terra network that
improved scalability and functionality

Over 70 newly confirmed projects are set to be built on Terra this year
which is one of the largest pipelines in the crypto and blockchain space

The potential of the Terra network to win over the market share of a very large market What is LUNA?

LUNA is the Terra protocol's native cryptocurrency and one of the top 10 largest cryptocurrencies as measured by market cap.

The LUNA token serves two purposes: to create and stabilise the price of the stablecoins on the protocol, and to give its holders governance rights over how the network is run.

By focusing on stablecoins, the Terra protocol has made financial
applications very efficient. This, as a result, has amassed billions of dollars in value. Terra users can send money to one another in a matter of seconds, earn interest on their savings and even take out a loan. Should I
buy Terras crypto LUNA?

Further growth potential
The global FinTech markets and payments sector is valued at over $160Bn and is expected to grow to $310Bn at an annual growth rate of 24% through 2025. Stablecoins, which Terra enables through its blockchain network, have opened
a multi-trillion-dollar opportunity in the payments and finance space and
have seen growth from $5Bn to $170Bn in supply. Terra's stablecoins could achieve a 20% market share by 2025 from less than 8% currently in 2022.

Time to think like a VC. You need to ask yourself what problem is being solved? Is Terra seeing adoption? And, how big is the market it aims to disrupt?

The Terra network is:

1. Making the global payments system more efficient

The Terra blockchain can handle over >10,000 transactions per second at near-zero cost, even on weekends. Visa, which processes 1,700 transactions
per second, only transacts on weekdays and costs over 100x more.

2. Seeing explosive growth

Even though Terra is still relatively new, it has amassed vast amounts of value. Terras Chai payment system has 2 million users, and according to Terra's website, processes more than $1Bn in transactions each year.

3. Further growth potential

The global FinTech markets and payments sector is valued at over $160Bn and
is expected to grow to $310Bn at an annual growth rate of 24% through 2025. Stablecoins, which Terra enables through its blockchain network, have opened
a multi-trillion-dollar opportunity in the payments and finance space and
have seen growth from $5Bn to $170Bn in supply. Terra's stablecoins could achieve a 20% market share by 2025 from less than 8% currently in 2022. Where can I buy LUNA?

Cape Town-based crypto investment platform Revix ( www.revix.com ) will be
the first platform in South Africa to offer Terra (LUNA) .

Revixs platform makes crypto investing effortless. You can get started in
just a couple of minutes, and use their online platform to check in on your crypto whenever you want, wherever you are.

With Revix youre in safe hands. Not only is the fintech backed by JSE listed Sabvest but they were the first platform in South Africa to perform a proof-of-reserves audit independently verifying that all their customers assets are safe and secure.

Revix will be offering LUNA from the 25th of February 2022 with an enticing fee-free promotion on all investments. (Image credit: .) Revix Promotion

How would you invest if you knew you couldn't lose? Revix is giving you that chance. From 16th February to 1st March, Revix is offering you the
opportunity for an investment that cannot decrease in value. And if it does, Revix has you covered. It's your chance to make money and diversify your portfolio with the confidence that you can only win.

How do I take part?

Sign up using the promo code: COVER. After signing up, you need to invest R5 000 into either the Smart Contract Bundle, the Top 10 Bundle or the Payment Bundle between the 16th February and 1st March 2022* . During this period, your investment is covered against loss. If the value of the Bundle has decreased by the end of the promotion period, Revix will pay you back the difference. Its that simple. You will be compensated in Bundle units only. *T&Cs apply .



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Link to news story:
https://www.techradar.com/news/revix19/


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