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Qtum aims to bring together the best features of Ethereum and bitcoin. Will its strategy succeed, and is Qtum a good altcoin investment? Here's what Bitcoin Market Journal analysts have to say.
What Is Qtum?
Qtum is an altcoin that "merges the reliability of bitcoin’s unfailing blockchain with the endless possibilities provided by smart contracts," according to developers.
In other words, Qtum's goal is to act as a hybrid between bitcoin and Ethereum. It seeks to provide the reliability of the bitcoin blockchain, while also delivering the advanced smart contract functionality of Ethereum.
Qtum also stands out because it uses a Proof-of-Stake (POS) model for transaction verification. That is another key difference from bitcoin, which uses a Proof-of-Work model that requires large expenditures of electricity in order to mine bitcoin -- an increasingly serious problem for bitcoin.
So far, Qtum has made the strongest inroads in the Asian market, but its ambitions are global. (Actually, they are even bigger than that; Qtum holds the title of being the first altcoin to be mined in space.)
Market and Advantage
The limitations associated with bitcoin and Ethereum are well known. Addressing them will be important for encouraging more adoption of blockchain technology by businesses. In that sense, Qtum is in a strong position vis-à-vis the market.
However, Qtum's market advantage is limited by the fact that other altcoins, such as NEM, are pursuing similar goals. Qtum's value proposition is not unique, and it will likely face stiff competition.
Overall, Bitcoin Market Journal analysts give Qtum an average score in terms of market and advantage.
Strong industry rivalry also clouds Qtum's economic outlook, according to our analysts.
While Qtum's focus on the Asian market gives it some economic momentum, its ability to achieve mass adoption faster than its competitors is uncertain.
The big asterisk here is that a big-name partnership could help Qtum to beat out the competition and achieve mass adoption first. Since early 2018, rumors have circulated of a partnership between Qtum and Starbucks, which would give Qtum a huge economic boost. Because that partnership has yet to be confirmed, Bitcoin Market Journal analysts give Qtum a below-average economic rating for the time being.
Qtum has a large management team, which is a plus. However, its head, Patrick Dai, has suffered a lot of negative press due to accusations that he stole from BitBay when he was head of that project several years ago.
Whether those accusations are true or not, the fact remains that the reputational issues of Qtum's leadership are a weak point for the project as a whole. For that reason, our analysts give Qtum an average rating for its management team.
Qtum's strongest selling point is its token, which gets an above-average rating from our analysts.
The design of Qtum tokens has some downsides. The tokens are not well distributed; a single account holds 28 percent of all tokens. The token is not completely decentralized.
That said, Qtum tokens are in a strong position because Qtum has a functioning product, the token is well integrated into the Qtum platform, and Qtum tokens are trading on reputable public exchanges. These positive factors outweigh the Qtum token design challenges.
Overall, Bitcoin Market Journalists give Qtum an average evaluation for both its short-term and long-term potential.
Market competition and the reputation issues of Qtum's team limit Qtum's potential for fast growth in the near term, and in the long run, token distribution issues may undercut Qtum's ability to achieve maximum value.
The bottom line: Qtum is not a bad altcoin investment, but it is not the most promising one, either. Of course, that could all change if the Starbucks partnership materializes.
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Bitcoin Market Journal analyst briefing for Qtum.
Questions and Answers
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