Like in all other assets, doing a SWOT analysis on cryptos can reduce the level of risk when investing. That’s because, you get a clear idea on what to expect, over and above the market noise that has become common in this market. On this basis, let’s do a SWOT analysis on Digibyte (DGB) to help you form a reasoned analysis on the potential of Digibyte (DGB) in the market.
One of the key strengths to Digibyte is its technical capabilities. Digibyte (DGB) is one of the few blockchains that can scale efficiently on-chain, without compromising on security and decentralization. This is a big deal, because it places Digibyte in a good position to compete effectively with centralized payment systems. It’s a factor that could play a huge role to DGB’s value in the future. Then there is the fact that Digibyte (DGB) is almost immune to a 51% attack. Digibyte has 5 mining algorithms, and now has Odocrypt. This simply means that ASIC makers can’t build DGB-specific miners. The result is that Digibyte (DGB) is the closest altcoin to Bitcoin (BTC) in terms of security from a 51% attack. Considering that a 51% is one of the biggest risks to a POW blockchain, it follows that DGB is rock solid, and this could play a role in supporting its value in the long run.
One of the biggest weaknesses to Digibyte is its core wallet. While it works, it can take long to sync and this may turn off new investors. Crypto is a relatively young space, and has lots of uncertainties. As such, for newbies, it can be a little disconcerting when the wallet has issues syncing and they need to move in or out of positions. Nonetheless, with a little patience, it works just fine.
There are tons of opportunities for DGB in the market. The biggest one is in the field of cybersecurity. Since 2018, the number of hacks on major websites has been on the rise. It’s an indicator that centralized security such as email and passwords is increasingly failing. This is a huge opportunity for DGB to take over with its DigiID solution. While DigiID has no direct impact on the value of DGB, the level of awareness it could create for DGB is phenomenal. Other opportunities for DGB include payments, where it could outcompete centralized payment systems due to speed, security and immutability.
The biggest threat to Digibyte (DGB) is the lack of coordinated marketing that could help create awareness about it in the market. Since it is an open source project, inferior projects that have better marketing could replicate its core strengths. This could render DGB worthless in spite of its huge potential. However, there is hope. The Digibyte Awareness Team has been trying hard, and is getting better with time on marketing. This could give it leverage over copycat projects in the long run.
With this information, you have a good starting point in deciding whether to invest in DGB or not.