It is not a surprise anymore that almost everything can be measured in quantified terms today. The same goes for cryptocurrency. While the industry is known for its volatility of value, we see many experts and famous people making claims about how a certain cryptocurrency would do in the next five to ten years or so. To be fair, we have so many technologies coming into our society that lets us do what we want.
And while it can be dubious, we have to understand that it is also in their interest to know how the industry will work in the future, but as well as they know how economies and financial systems work more than we do. However, it should not be an encouragement to appeal so much to authority, but rather do know that you need to take everything with skepticism.
What price predictions are
Price predictions refer to the analysis of data one has now about a certain cryptocurrency, and applying how much it will benefit the said currency in terms of success and buy-in. For instance, if the Ripple’s XRP tokens get more attention this year than last year, it can be a leeway for people to invest more in it, and so there is a high chance that the xrp price prediction for it would be positive.
It does not only predict whether a crypto would be famous, because that would be too reductive. Rather, it tackles the economic and monetary value of a certain cryptocurrency in particular periods of time. So, if the most bought in crypto currency becomes stagnant or loses investors, it can stay in its top place, but its value might decrease in monetary terms.
The analysis comes in many factors. It delves deeper into every factor that there is about the “movement” of the cryptocurrency. The first factor has to do with the technical aspect of the cryptocurrency. Is there anything that makes the cryptocurrency stands out? Or anything that the creators announced about the crypto that would be innovative or change the landscape of the industry?
If the XRP has proposed its feature where it converts the currency in the transaction procedure for better efficiency, then the xrp price prediction might show a positive result, as it is something quite innovative for the cryptocurrency to have.
The second layer of analysis is the price itself. What price did the cryptocurrency start off with? Was it suddenly big, or did it take a long time before it entered into the bigger crypto competition? The price is the biggest soothsayer of the cryptocurrency’s success in such a way that is shows the real progress of the said currency compared five or ten years before.
Credibility is the talk of the town when something is a far-fetch thing. However, if you plan on paying for prediction support for your currency, then you might want to know about the technology that they use to gather and analyze data findings respectively.