Is SALT a good Investment?

Is SALT a good Investment?

The micro-lending cryptocurrency known as SALT (SALT) seems to be identical democratic with investors. Secured Automated Lending Technology ( SALT ) had achieved an impressive Coin Price of $ 2 and a dainty Market Capitalization of $ 112.200 million by 5 April 2018. unfortunately that price came with a batch of market excitability ; the monetary value fell by .21 % between 4 and 5 April. That led to a Market volume of $ 5.675 million. SALT achieved those prices on a Circulating Supply of 56.194 million and a sum supply of 120 million on April 4, 2018. SALT has no Maximum Supply so it is vulnerable to inflation.

What is Salt Anyway? such prices obviously have a lot of people wondering what precisely is SALT and is it worth the price. SALT is a micro-lending service that uses cryptocurrency as collateral. A good way to think of SALT that some of its devotees may not like ; is as a digital pawn shop for cryptocurrency. Despite that questionable line of think there are some good attributes to SALT. It appears to a well-organized and highly-capitalized campaign with a potentially profitable merchandise. SALT besides some well technological attributes ; such as being convertible with Ethereum (ETH) and Bitcoin (BTC), the two largest cryptocurrencies. Since it appears to use the ERC20 protocol, SALT should work with the many ERC20 tokens on the market today. Since Ethereum-convertible ER20 tokens make up most of the non-Bitcoin altcoin market these days — that might provide access to a boastfully market. Will SALT’s business model work? SALT ’ s avail might be popular because it lets people borrow against cryptocurrency, and receive decree currencies like dollars or pounds. This solves the problem of being able to spend funds from cryptocurrency in the actual populace. SALT offers fast application march with no credit checks. Since it is all done in the blockchain, the loan is based strictly on the sum of cryptocurrency a person holds. Loans can be collateralized by several cryptocurrencies including Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH). such a business model would entirely work if SALT has solved the cryptocurrency liquidity problem. fluidity means the ability to get cash cursorily for your tokens or loans, without it something like SALT is despicable. The biggest drawback to present day cryptocurrencies is that they are not liquid. You can not cursorily convert them into cash you can use in the real populace. That is you can not take Ripple (XRP) ; or Litecoin (LTC), down to Kroger and buy food for the family with it. SALT may have an answer to that problem, or at least a partial derivative solution that might make cryptocurrency more attractive to average people. unfortunately, SALT ’ s web site says nothing about liquidity and there is no testify that SALT is participating in the largest campaign to ensure cryptocurrency liquidity : the Bancor Network. A identical smart move for the SALT team right now would be to join the Bancor Network and make SALT convertible through its Bancor (BNT) “ smart token. ” Will SALT make money? SALT has a fortune of potential because of the size of the world ’ s cryptocurrency commercialize. The full Market Cap for Cryptocurrency was $ 262.395 billion on 30 March 2018, Coinmarketcap reported. That visualize has been much higher it was $ 741,620 billion back on 4 January 2018. That means there is an opportunity for borrowing and microlending in the cryptocurrency celestial sphere. There is a lot of likely to generate a bunch of interest from those loans. unfortunately, there are huge barriers to successfully issuing blockchain-backed loans. The biggest of which is legality, but other roadblocks to its business model abound. Is SALT Legal? There are good dangers to SALT including its legality. SALT ’ s microlending might violate trust regulations or anti-usury laws. A major drawback to SALT will be that it might require a banking license. This might require SALT to follow specific Know Your Customer ( KYC ), anti-money laundering, and other burdensome and costly requirements.

Securities and investment regulations are another huge barrier SALT faces. It is trying to sell Blockchain-backed loans as an investment. Authorities including the Securities and Exchange Commission ( SEC ) in the United States and the People ’ s Bank of China ( PBOC ) in the People ’ s Republic are cracking down hard on cryptocurrency-related investments. SALT ; which looks a great deal like a derivative instrument, is sure to attract their attention. One reason why regulators will go after crypto products like SALT is that the blockchain industry is little and lacks money and political punch. Unlike the big Wall Street banks in the USA, or the City of London, SALT and other crypto companies do not own any politicians — however. That makes it easier to go after. Regulators often behave alike predators ; they pursue the smaller and weaker companies, and ignore the boastfully potent organizations with the ability to fight back. This means it would be advisable for median investors to wait until Goldman Sachs (NYSE: GS) or Tencent Holdings (HKG: 0700) starts investing in SALT to get into crypto-based lend. Is SALT Practical or Scalable? SALT ’ s micro-lending might not be practical with today ’ second blockchain and cryptocurrency technology. The greatest technological barrier to SALT ’ s business model is the scalability trouble. scalability is the maximum size of the blocks or architecture of the blockchain. The size of the blockchain determines the volume of transactions a chopine can platform. That means it might not be potential for SALT to process enough loans to serve a mass market. stream estimates are that the Ethereum blockchain can only process 13 to 20 transactions a irregular, depending on which adept you consult. Ethereum ’ s ability to summons tokens is evening slower, Coinbase cofounder Fred Ehrsam charged that Ethereum can entirely process around seven tokens a second. Bitcoin (BTC) is even worse the worldly concern ’ s most democratic cryptocurrency can only process three to four transactions a second, Altcoin Today reported. SALT’s Business Model is Not Realistic salt might entirely be capable of processing one or two loans every minute with the introduce engineering. One has to wonder if it would be able to process enough loans to make money. This leads to two conclusions ; either SALT is not feasible, or SALT has solved the scalability problem. If the first decision is discipline SALT will collapse. If the moment guess is dependable SALT needs no outside investment — because it has a trillion-dollar technology. My misgiving is that SALT ’ south business model is to hope person solves the scalability problem. That is a atrocious clientele model because it appears to cipher is close to solving the scalability problem. There are numerous attempts to solve the scalability dilemma going on out there ; including Plasma, the Lightning Network, Ripple, Zillqia, Universa, and the Raiden Network to name a few. unfortunately, there is no evidence that any of these organizations has solved the problem. Some of them like Plasma and Zillqia (ZIL) are still on the drawing board. An even worse scenario for SALT would be person solves the scalability problem with a patent protocol. The entity that did that would be in a position to build its own lend solution, or worse to charge SALT high fees to use its engineering. That entity ; not SALT, would be the company to invest in. A true nightmare for SALT would be that a major investment bank ; or big engineering ship’s company, solves the scalability problem and uses that technical school to build a melted cryptocurrency lending solution connected to the trust system. There would merely is no way SALT can compete with something like JPMorgan Chase (NYSE: JPM) or Alphabet (NASDAQ: GOOG). SALT is a terrible investment At the end of the day SALT is a awful investment because it has a strictly theoretical product and business model.

Investors should stay aside from SALT until it demonstrates that the scalability trouble has been solved, shown that cryptocurrency microlending is legal and profitable, and that the risks from its lend are gloomy. It is besides a good idea to make sure SALT has solved some other potential problems — including liquidity. The deplorable truth is that SALT is just overprice right now. Stay away from this cryptocurrency until its creators have proved they can make dependable on their claims. See more articles about cryptocurrency and finance at Market Mad House .

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