The Early Stage Investor, with over 8,000 followers on YouTube, made an analysis of Kaspa and if the price can give up to 10x to 100x returns. The crypto analyst who made the presentation discussed the pros and cons of Kaspa as he discussed its price potential.
On the positive side, the analyst noted that Marathon Digital, a major Bitcoin mining company, has invested $16 million in Kaspa mining to diversify from Bitcoin.
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This move suggests that Kaspa mining offers potentially higher profit margins. However, the analyst pointed out that miners might be mining Kaspa primarily to sell it rather than hold it long-term.
Kaspa’s growing network hash rate is also a sign that miners’ interest is growing in the coin. However, a rising hash rate may not guarantee big returns on investment.
Kaspa enthusiasts argue that the project has solved the blockchain trilemma, achieving scalability, security, and decentralization. However, the analyst questioned the uniqueness of this claim, pointing out that other projects like Litecoin and Kadena have made similar assertions.
Regarding Kaspa’s technology, the analyst mentioned features such as SPV proofs and future subnetwork support for layer 2 solutions. However, they expressed skepticism about the need for layer 2 if Kaspa truly solved the scalability issue.
The analyst drew comparisons with other technologies, noting that Kadena also combines proof of work with DAG principles. They suggested that the crypto space has evolved beyond these solutions, with focus shifting to areas like decentralized AI and computation.
While not dismissing Kaspa as a scam, the analyst described it as a “boring” layer 1 blockchain. They acknowledged that Kaspa could potentially achieve a 5x to 10x return in a bull market but expressed doubt about its ability to deliver life-changing 100x returns.
The analyst’s preference lies in revolutionary technologies with the potential to significantly impact the world, rather than what they perceive as a “mediocre” asset like Kaspa.
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