Golem (GNT) has launched its main net and people are excited about. Trading volumes are up, and the price too, is up by over 20%. But that’s normal in crypto, and someone could argue that it’s probably just another pump and dump. That’s why many people online are posing the question, is Golem a worthy investment?
To answer this question, you need to dig deeper into Golem’s market dynamics. Let’s start with the market that Golem is targeting, and that’s the cloud computing market. The cloud computing market has grown tremendously in the last few years, and is currently worth over $200 billion and growing. By decentralizing cloud computing, Golem will take a good chunk of this market, and that’s good for its long-term value.
Secondly, Golem’s main net launch for the Golem (GNT) Brass allows users to earn and spend Golem (GNT) coins on the Ethereum blockchain. This means that you can now offer computer services on the Golem platform, and convert the Golem coins you earn to Ethereum, or any other cryptocurrency of your choice. This is likely to attract more users to the Golem platform, and with more users, comes an increase in the value of a crypto.
Another aspect to Golem that makes it tick is the fact that it is very efficient. For a super computer that can be accessed by anyone from all across the world, one can expect technical issues, and bugs from time to time, right? After all, it’s a problem that many cryptos have to deal with. Just recently, Ethereum’s weaknesses were exposed by the cryptoKitties ICO. Well, Golem happens to be quite different. The Golem developer team has implemented an interesting concept, whereby tasks are sent in fragments to the individuals handling them. As such, multiple computers can complete tasks on the Golem platform, without any impact on operational efficiency or transaction speeds. That’s quite a feat, and makes Golem one of the few fundamentally strong cryptos, that can do what they are designed to do, and with efficiency.
Related to the issue of transaction costs, Golem has managed to solve the problem of costs that many cryptos have faced in the recent past. For instance, as the price of bitcoin and other major cryptos rises, so do their transaction costs. Golem has solved this problem by using the lottery approach. This way, no matter how much the network grows, transaction costs will never make the network impractical.
Up to this point, we have conclusively answered the question of the worthiness of Golem (GNT) as an investment. Its fundamentals are sound. Personally what I love most about this project is that it has a highly dedicated developer team. They have managed to steer this project all through, irrespective of the challenges it has faced along the way. Getting such a complex project to the level that it is today, is no easy feat and is an indication of dedication. I believe they will continue to drive this crypto to even greater heights. I am long Golem for the long-run.