Is BitTorrent Token (BTT) A Good Investment? In-depth Analysis and Near to Longer-Term Expectations
https://www.bittorrent.com/btt/
Is BitTorrent Token (BTT) A Good Investment? In-depth Analysis and Near to Longer-Term Expectations

By CryptoBoomer | Investments | 10 Jan 2020


The ICO boom of 2017 and 2018 - which saw many billions invested in new projects - has been a bit of  a double-edged sword for the cryptocurrency market.

On the one hand, it resulted in many projects with no viable use case and commercial strategy entering the market, siphoning funds from investors who are unlikely to see their money return. On the other hand, after the initial hype and hoopla died down, many incumbent businesses and industries began to see the potential in Distributed Ledger Technologies (DLTs). 

If you notice, there are several big players who initially railed against cryptocurrencies who are now getting in on the game - JP Morgan Chase perhaps being the most notable of these. Entities who never offer criticism in the first place, and are building blockchain-based solutions are even more numerous than the former group.

In recent times, among these altcoins, few have resulted in as much coverage as that of BitTorrent Token (BTT). The peer-to-peer file sharing company was always popular, all over the world, but when it came to be known that it would be working on a cryptocurrency, the discussion surrounding the token when off the charts. 

What would the BTT be used for? How would its association with TRON benefit its growth? Would it actually come to be of any use?

There’s a lot to talk about regarding BitTorrent Token. I’ll quickly give you a rundown of what the token is all about, its history and collaboration with the TRON project, the potential in leveraging its existing service, and, of course, an overview of price history and potential as an investment.

What is BitTorrent Token (BTT)?

How BitTorrent is going to work with blockchain technology.

BitTorrent Token (BTT) was an initiative launched in early 2019 jointly by BitTorrent, the file sharing platform, and TRON, the Ethereum competitor that was founded by Justin Sun. BitTorrent itself was launched far back in 2001, with it becoming a private company in 2004. The original founders, Bram Cohen, Ross Cohen, and Ashwin Navin, and BitTorrent was purchased by TRON in 2019.   

BitTorrent TRON acquisition

TRON acquired BitTorrent for $140 million. Source.

The BitTorrent Token can be seen as an extension of BitTorrent’s existing platforms. The token itself will be used to incentivize people to be active on the platform. Seeders, who provide the files that are to be shared, are incentivized to seed through rewards with BTT. Users who obtain these files can reward seeders for their efforts. 

However, the development team is going further than just creating an incentive mechanism. They also envision the platform as being a hub for many other key services, including decentralized data storage. There are essentially three services related to the platform: content delivery, which is the aforementioned rewarding of seeders; decentralized storage for data backup and sharing; and decentralized proxy service for the retrieval of content by URL.

Being a TRON venture, BTT is a token that is built on TRON and uses the TRC-10 standard. It does not feature any mining.

The story of its association with TRON is worth going over though, as the two projects are tied closely together and stand to benefit greatly from each other.

BitTorrent and TRON

An overview of the integration of BitTorrent and TRON.

The thought of BitTorrent and TRON would be working closely together has engendered both criticism and excitement. TRON is no small project, having risen to the near top of the crypto rankings, with the market cap currently being roughly $930 million.

TRON acquired BitTorrent in the middle of 2019 for roughly $140 million - that much of an investment means that TRON is dead serious about leveraging BitTorrent to grow its own platform. TRON’s role in this collaboration is largely as a technology infrastructure providing, with BTT being launched on the TRON network. The wallet associated with the BTT can also be traded for TRX via a decentralized exchange. 

However, there has also been some controversy, which TRON has a history of courting. BitTorrent founder Bram Cohen accused Sun of not making the final payment out of Escrow for the acquisition, not having received the signoff for the deal,

Interestingly, TRON was not the only one interested in acquiring BitTorrent. Competing projects EOS (EOS) and NEO (NEO) actually offered higher bids for the company. The acquisition process took two full months, and Cohen left BitTorrent shortly after. 

How can the BitTorrent Platform be Leveraged for Token Growth?

"Project Atlas", BitTorrent's title for the "Future of Content Distribution".

Project Atlas, which BitTorrent calls the future of content distribution, is the general name under which all efforts are spearheaded. This effort will see BitTorrent’s 100 million or so users migrated to the TRON blockchain.

File sharing accounts for a large portion of the world’s internet traffic (at one point accounting for 70% of internet traffic; traffic varies by location). On top of that, BitTorrent has a whopping 100 million users! Some reports even have that number being as high as 250 million. This puts it in a very advantageous position as far as adoption is concerned.

TRON is also quickly a hub for Decentralized Applications (DApps). DApp growth has been pretty optimistic in the last year, though EOS has slowed down somewhat compared to Ethereum and EOS. TRON has announced its intentions to build the strongest DApp ecosystem - every DApp-focused ecosystem says that - but unlike others, it can really utilize BitTorrent to give itself that extra edge. 

An overview of BitTorrent Speed.

There are a couple of ways that BTT can utilize the existing file sharing services for growth. For one thing, the speed system means that BTT can be used to incentivize users to dedicate more bandwidth and resources to keep files alive. BTT tokens can be acquired by doing this, as opposed to mining.

There’s certainly a lot of potential here. We’re going to have to wait and see how tightly TRON and BitTorrent can be integrated - what DApps will be available, how well the reward mechanism takes off and whether TRON can handle the enormous userbase. For the moment, however, things look decent.

Sure, there have been some naysayers about this whole effort, but if you’re looking for more evidence of whether this is a good investment, then you should know about BTT’s excellent performance on the Binance ICO launchpad. 

BitTorrent Token’s Phenomenal Performance on the Binance ICO Launchpad

BTT ICO

BTT showed phenomenal growth following its ICO. Source.

The BitTorrent token conducted its ICO in January 2019, and the numbers the week after were astonishing. Binance’s famous ICO launchpad was the grounds on which the ICO was conducted and nearly 60 billion BTT tokens were sold. 

It started at an initial price of $0.00012 per token, but within a week, it went up to $0.000798 per token - a six-fold increase! That proved to be a tremendous investment for those who participated. Those who couldn’t participate in the ICO were airdropped BTT tokens. 

Price History

BTT price

BTT's price. Source.

The token’s price currently stands at $0.000286, with a market cap of roughly $60 million. The all time-high and all-time low for the project stands at $0.00186, which occurred in May 2019, and $0.000265, which occurred in December 2019. The 52 week high and 52 week low show a drop as well, at $0.001861 and $0.000265 respectively. 

BTT price chart

BTT's price chart. Source.

This drop might have investors worried, but there is definitely room for the coin to grow further, should development and growth actually click. Making a judgment about the potential of the token now would be a bit premature.

Investment Potential

Just looking at how well BTT has done in the Binance ICO Launchpad is enough for one to think that BTT is a good investment. 

Sure, you’ve missed the boat on the ICO gains, but it’s time to look towards the future. What about BTT makes it a good investment, if at all? 

Well, right off the bat, I’ll tell you that it’s an investment worth considering, though not without its risks. There is no guarantee with any altcoin that it will succeed, but two things that point towards a potential growth is the use case itself and the room for feature development. In both regards, BitTorrent Token has potential. 

It’s impossible to tell how high BTT could go, but if you’re willing to expand your portfolio to include a few potential moonshots, then maybe you could not go wrong with BTT. I still advise looking at how the token develops and dollar-cost averaging your investments. 

This is an altcoin, so don’t be afraid to pull your investments out if you feel that it’s not worth the risk or the time and effort. This is one of those altcoins that could go either way. BitTorrent itself is a platform that will not go out of use anytime soon, but that alone won’t be enough to see this become a good investment. Keep an eye out for how the token and feature develops.

Conclusion

The talk around the token was both good and bad. P2P file sharing is no doubt an extremely popular activity, but the naysayers of TRON saw it as another big marketing stunt, being all talk and application.

The truth is that there is no doubt that BitTorrent could find heavy use of the token. The platform already has a great number of users and the two networks can work together to benefit each other. 

Will this actually happen though? Unfortunately, as is the case with so many tokens, it is too early to tell. One thing is for sure: watch this token closely.


CryptoBoomer
CryptoBoomer

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