We live in the Information Age yet our data is easily compromised and falsified. Factom with their Factoid (FCT) token is changing this as they have developed a scalable data layer for cryptocurrency that will secure the world’s data and make it immutable and easily auditable. In my opinion, this alone will create tremendous value. As of this writing, the market cap of Factom is 261 million while the market caps of Bitcoin and Ethereum are 42 and 35 billion respectively. I am making the call that, the “Flippening” will not be Ethereum replacing Bitcoin as the number one coin, it will be Factom. Before I explain why I feel this way, let me first say this is merely a theory of mine I thought would be fun to write down. I think very highly of both Bitcoin and Ethereum and hold long term investments in both. I want both to continue their successes and increase in value and utility and if FCT never overtakes BTC or ETH and all three simply continue to increase in value, I won’t lost a moment’s sleep unless I’m too busy drinking champagne.
World renowned billionaire venture capitalist Tim Draper who is an investor in Factom once said,
“I believe that the Factom team has the opportunity and the potential to build a company greater than Oracle and Palantir and IBM combined.”
While I concur with his assessment about Factom Inc, I believe Factom the protocol (Factom the protocol is being developed by the Factom Foundation, a separate legal entity) and its’ underlying cryptocurrency token (FCT) will become the number one cryptocurrency as it will be a superior global store of value to any currently in existence. I do not believe the Founders of Factom intend for it to be a store of value, but sometimes brilliant creations take on a life of their own. Many are calling Bitcoin the, “New Gold” but it makes much more sense that FCT should hold that title. And many are calling for Ethereum to overtake Bitcoin but I forsee Factom doing so first. Why?
- I believe Factom will begin to see widespread adoption and thus increase in price substantially.
- Factom cannot fork. A global store of value needs tremendous stability. Bitcoin and Ethereum can fork.
- Factom secures the world’s data with their protocol. What Google is for finding data Factom will be for securing it. It makes sense that with humanity living in the Information Age that it’s preferred global store of value would would be an open source protocol and token that secures the world’s most valuable commodity.
- Factom will have greater decentralization that Bitcoin. As we’ve seen with the scaling issues, certain entities have great control over Bitcoin. A global store of value must not have actors who can exact such influence.
- Factom is blockchain agnostic. It can anchor its’ data into almost any blockchain from Bitcoin to Ethereum thus spreading its’ security over time and space.
- The more data the world creates, the more Factom will need to be utilized thus creating greater demand and thus, value.
Factom is solving one of the Information Age’s greatest problems. As it does, it will become a token with tremendous value and become one of the world’s preferred store of value. Just think if there was a Google Token. An open source, decentralized token that went up in value the more the world searched for information. I see Factom as an open source, decentralized token that goes up in value the more the world secures information. As a result, in time, it will overtake Bitcoin as the most valuable cryptocurrency.
Disclaimer: I own Factoids and am no doubt biased. Please do your own research as this is simply my opinion and there may be aspects to Factom that I don’t yet understand. For example, it’s possible that EC usage from even large companies may not be that high. There are many unknowns.