NEM (XEM) Coin Price Predictions 2020 & Beyond!
Before we get into our NEM/XEM coin price predictions of 2020 and beyond, it’s best we go into some background about this crypto project. If you already know what NEM/XEM coin is about, and how it works, skip the first part of this article.
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What is NEM (XEM) Coin?
NEM evolved in March 2015 as a fork-out version of the NXT, another popular blockchain-based virtual currency and payment network platform.
It is operated by a Singapore-based non-profit organization called NEM.io Foundation. Following the fork, NEM.io decided to develop its own codebase for advancing NEM, to make it more scalable and faster. Thus emerged a new NEM cryptocurrency platform, which was completely different from the original NXT.
NEM has its own cryptocurrency, called XEM. Though XEM is not being used by merchants as a means of payments as bitcoins are, XEM has nonetheless grown significantly in value and currently has the twelfth-highest market cap among cryptocurrencies.
NEM currently supports one wallet, called Nano wallet.
NEM Proof-of-Importance & Harvesting?
NEM aims to build a “better” blockchain, and it tries to achieve that using two key concepts of proof-of-importance (POI) and harvesting.
Other cryptocurrency networks, like Bitcoin, use a proof-of-work (POW) or proof-of-stake (POS) system, which requires a mining device to work for the blockchain. The rewards are allocated to the miners based on their work contributions. (For more, see How Does Bitcoin Mining Work?)
However, in POW, the miners with higher computing/processing power have undue advantage over those with less powerful machines. Additionally, POW leads to more power consumption making the process energy inefficient. In POS, coin hoarders have the undue advantage as the participants with more coins have higher chances of getting more coins through mining and transaction processing. It also promotes cryptocoin saving, instead of cryptocoin spending.
NEM addresses the issue using its POI mechanism, as it gives more “importance” to how much one is “invested” into the NEM system, with realistic “vested” interest. The XEM coins in the wallet and the holding period plays a key role in gauging the importance.
One needs to hold 10,000 “vested” XEMs in one’s wallet to qualify for generating and earning new blocks and for earning various transaction fees.
How does POI work?
For example, assume Martin gets 20,000 XEMs in his wallet today. With each passing day, NEM’s mechanism allocates 10% of holdings as vested. After day one, 2,000 XEMs of Martin’s holdings will be vested, leaving 18,000 non-vested XEMs. On day two, 10% of 18,000 will further qualify as vested, taking the total vested XEMs to 3,800, and so on. On the seventh day, the vested XEMs will cross the threshold of 10,000, which will qualify Martin to seek blockchain rewards.
Additionally, POI also rewards users who make transactions with others in the network. Conducting more transactions above a minimum size also adds to a participant’s POI score, which helps him/her gain more chances to claim a reward. To prevent misuse through back and forth dummy transactions among a group of users, NEM considers the net transaction amount for improving POI score.
Harvesting is an alternative to the standard mining process that is commonly followed by other popular blockchain-based platforms like Bitcoin and Ethereum.
Through mining, newly identified cryptocoins are added to the blockchain ecosystem, and the various transactions occurring on the network are verified and added to the blockchain public ledger. Unfortunately, the traditional mining method is power-intensive, and may also take a lot of time that leads to slower transaction processing and network congestion.
NEM’s harvesting approach works differently. Instead of each miner contributing its mining power in a cumulative manner to a computing node, a harvesting participant simply links his account to an existing supernode and uses that account’s computing power to complete blocks on his behalf. Essentially, one lends his POI score to the supernode that increases the chances of block harvesting jointly without there being any need for increasing the processing power.
As soon as a transaction occurs on the NEM blockchain, the first node or computer that catches and verifies it notifies other users, which creates a propelling wave of information increasing the chances of block generation.
A participant’s mining device or computer need not be running to perform the harvesting process, and that helps in power saving. Instead, harvesting is done automatically using a user’s wallet. Harvesting needs no special hardware like that required for mining bitcoins.
NEM uses the Eigentrust++ algorithm that maintains a “reputation system” for the various nodes on the network. It helps to balance the load on the network, and even decide on removing the non-contributing nodes keeping the network efficient and agile.
NEM (XEM) Use Cases?
NEM offers seamless ability to interface between public and private blockchains. It enables easy transfer of any digital asset — like tokens, contract, or files — from a privately held internal enterprise network, routed via a public blockchain, and finally to another business’s private network. Today, a user cannot move money directly from his/her Paypal account to a Venmo account. NEM private to public blockchain interfacing can make such transfers possible, provided all involved parties agree.
NEM is capable of handling everything — financial assets, contracts, documents, and a variety of digitized assets.
One can create one’s own Paypal or Venmo on the NEM network. For example, NEMPay, an open source payment app already exists on NEM, and it can be easily customized by a participant to use his/her own custom crypto tokens for easy money transfers.
Other uses of NEM include a retail store chain using it for maintaining and tracking its loyalty rewards points program for customers, or a shipping company using it for maintaining data about shipping and handling, or as an open, secure, end-to-end supply chain logistics management system.
Other social uses include secure voting, record keeping, registration, and access control. For example, to pass a majority resolution in a constituency meeting, NEM’s in-built multisignature feature can be used to automatically decide whether the minimum N out of the total possible M signatures have been received or not.
NEM also allows a participant to easily create, distribute, and trade cryptocoins and tokens that are compatible with the wallets and other trading apps available in the NEM ecosystem. One can even conduct initial coin offerings (ICO) on NEM using this facility.
Technically, NEM is API compatible, so it allows any global application to be linked and utilized on the NEM platform. Any new or existing mobile app, web app, database, or other programs can easily connect to the NEM blockchain and interact with it in a secure manner through the use of API Gateway server and API calls. It allows one to easily and completely customize how they allow the access and use of NEM, in an open and self-scaling framework.
NEM (XEM) Price Prediction 2020
Now, let’s look at a few NEM price predictions. I’ve collected information from several different sources. However, most of them nothing more than just a number, a few graphs and the words “NEM price prediction” a lot of the time.
The first source we have is from a website called “Wallet Investor”. This is a classic example of a website that gives no reasoning to its content whatsoever, so it’s hard to know how they came up with this estimate. Wallet Investor gives a “one-year forecast” from exactly the day that the page is visited.
It doesn’t bother to explain what NEM is, or to use its timeline for development to justify its prices. It does have a lot of graphs though, but they aren’t explained at all.
The “one-year forecast” it does provide is that NEM is likely to crash towards the end of 2020.
The next source I used to find NEM price coin predictions is called “Trading Beasts”. Again, with absolutely no reasoning behind it, the numbers given for the price of a NEM coin at the end of 2020 are a low of $.035, a high of $0.51, and an average of $0.41. Quite amazing really, considering that the low could easily be $0.00 and there is pretty much no limit to the amount of upside potential.
Finally, in our short-term NEM price predictions, we can look at a website called “Long Forecast”. Again, with absolutely zero reasoning, a number is picked from somewhere on this page. However, this time it’s down on today’s price at 3c.
Perhaps this writer knows something the others don’t but isn’t willing to share it? Or maybe they just shut their eyes and picked any two numbers at random. I guess we’ll never know!
The reason why I say this is because I do not want you to invest money into a project based on what a website has projected its price to be in the future. If there was valid reasoning behind these NEM price predictions, I would speak more positively about them.
NEM Price Predictions — Long Term
Now, let’s move on to long-term price predictions for NEM. Like the end of 2020 predictions, these seem to be based on very little. However, a couple has attempted some form of justification. I still wouldn’t refer to these commentators as experts, however. It has proven quite difficult to find predictions from reputable sources.
First, I’ll look at the “Wallet Investor” again. Like their 2020 call, their NEM price prediction for in five years’ time is a bullish $1.247. Also, like their 2020 prediction, it seems to be based on literally nothing.
Next, I’ll revisit our friends at “Trading Beasts”. This time, their NEM price prediction is between 87c and $1.28 — an average of $1.02. I think you can probably guess the level of analysis that they posted with these figures. That’s right! Absolutely none!
Finally, before looking at some NEM price prediction with slightly more substance, we can look at “Long Forecast” again. This time, they’ve turned bullish! Not quite as optimistic as the other two but they believe that the price of a single NEM coin will be between 48c and 60c by May 2020.
No McAfee NEM Price Prediction?!
Strangely enough, missing from the NEM price prediction list was the famous John McAfee. John usually has something to say about many projects in the cryptocurrency space.
It’s usually following a wildly successful initial coin offering, in which the team behind the project in question has raised some insane amount of cash. He charges heavily for his Tweets though, so I guess the team behind NEM mustn’t have wanted to pay his $100,000 fee for a quick price pump!
Is NEM (XEM) Coin a Good Investment?
After all the bad mouthing of the analysis that goes on in cryptocurrency I’ve done, you’re probably expecting my answer to the question “is NEM a good investment” to be a strong “no”. However, that isn’t the case.
Like all cryptocurrency investments, the first thing you must understand is that NEM is a very high risk, very high reward investment. That means there is a chance you could retire early by putting a few hundred dollars into NEM. However, this isn’t a big chance.
Before I talk about what gives NEM the almost limitless upside potential that it does have, there’s another warning coming. If you want to invest in any cryptocurrency, you must only invest money that will have no impact on the quality of your life if it vanishes. You must invest with the acceptance that your money could disappear tomorrow.
All that said, NEM has a lot of positives going for it. If it achieves what it sets out to achieve, it could easily outperform its rival crypto asset Ethereum. If it achieved the same market cap as Ethereum (which also hasn’t achieved what it set out to achieve yet), each NEM will be worth around $7.55. This would make it an exceptionally good investment.
If NEM manages to disrupt the number of industries I listed earlier, the market cap could potentially be many trillions of dollars. This would make each NEM coin much more valuable than it is today, and the entire market cap would be many times that of the entire cryptocurrency space today.