Among many different Ethereum projects, the one called Golem caught the attention of numerous cryptocurrency traders and investors. Whenever some new interesting project comes up, people tend to ask questions such as “Should I invest in Golem?”, “What is the Golem value?” or “Is there a future for Golem?” In the following article we will try to explain how it’s made, what’s the purpose of this currency and what to consider when choosing to invest in it.
What is Golem?
Golem is an open sourced, decentralized supercomputer that can be accessed by anyone worldwide. Golem is a combination of the power of user’s machines, from personal laptops to entire datacenters. The goal of Golem’s developers is to enable users to use this network to use any program we know today, from rendering to research and finally running websites, in a completely decentralized way which is not expensive.
The Golem network is actually a decentralized sharing economy of computing power where anyone can earn money by renting out their computing power to other users or developing and selling software. Developers believe that this network can speed up business computation while lowering the costs for anything from stock market predictions to big data analysis.
People who created it claim that rendering CGI, which would normally take days, can be done in minutes by using Golem, for a cheaper price than anything we know today. They also believe that Golem can run the world’s first and fully decentralized cryptocurrency mining pools. Some sources say that this technology could be soon used in science, from DNA analysis, protein folding simulations to search for alien life.
As it was already explained, Golem enables users and applications to rent out cycles of other users’ machines. So, anyone from a single PC owner to a large data center could provide to this huge Golem network. This two-sided market allows users either to sell unused computational resources (CPU or GPU time) to others or to buy unused computational resources from others.
What is Golem token?
In late 2016, developers of Golem started an ICO campaign, crowdfunding for a token on the Ethereum platform called Golem Network Token, the GNT. The plan was to make this token the core of the Golem network and to ensure flexibility and control over the development and future of this project. The campaign was supposed to last three weeks or until 820,000 ETH was raised.
Near the end of 2016, during the ICO campaign, Golem raised 820,000 ETH, which is more than $8.6 million USD, in just 30 minutes for its Golem Network Token. All investors who supported the project of this Polish-based brand that offers peer-to-peer network sharing earned very fast and have been paid in cryptocurrency. Thanks to this campaign, GNT is now officially an existing cryptocurrency in the digital market.
You can read more about most interesting blockchain projects that took place in 2016/2017 in our previous article here, in the “ICO investing” section.
Golem Network Token price
At the time of writing the price of 1 GNT was 0.0002084 BTC or $ 0,567 USD. A token that didn’t worth much just 6 months ago, now has a market cap of $477,753,637 USD. Golem’s current trading volume is around $19 million. The current status of GNT compared to BTC can be checked out here.
In November 2016, GNT was worth $0.0128 USD, having a calm period until March 20, when it was around $0.0567 USD. Since March 2017, Golem Network Token entered a rally of constant growth. By the mid-April, it climbed up to $0.105 USD, and in late May 2017, it was already $0.492 USD. The growth didn’t stop there, so on June 11, GNT hit the record of $0.588 USD. So, in just 7 months, the price of Golem Network Token went 50x higher.
Investing in Golem
Looking at all these charts makes us ask the question “What is the future of GNT?” Well, there are some analysts who predict good times for Golem token, saying that it could multiply in value by 50 or even 100 by the end of the year. Of course, we should all be cautious, because investing in crytpocurrencies is always a risky move, but it can also be very profitable.
It can be a very promising investment opportunity as it will be only 1,000,000,000 GNT in circulation and the current price is around 6 cents. Compared to other cryptocurrencies, GNT has the highest change for wide adoption. Assuming that the current GNT cap would rise to about $1 billion one day, the price of a token would be around $1.25 USD. With a cap of $10 billion, the price would be around $12.5. For some cryptocurrency users, it might be the best to hold on GNT for a while, avoiding all market swings, waiting for the token to rise significantly.
NOTE: The author is subject to all manner of error in judgment. Do your own research, and be prepared to take full responsibility for your own trades.