He did not hold any of the other securities mentioned in this article. On the date of publication, Thomas Niel held LONG positions in Bitcoin and Ethereum. Given BitTorrent’s murky prospects and limited utility, it’s best to take a pass. While there’s a long-shot possibility this could happen again, buying based on this seems more like wishful thinking than a well-developed bull case.
BITTORRENT CRYPTO FULL
The meme stock crowd stampeded into the crypto in full force, causing it to rocket higher on little more than hype. Last spring, BitTorrent was in the right place at the right time. Still, unless there’s some indication BitTorrent’s user base is exploding due to the upgrade, I wouldn’t buy it for this reason. You could argue that having the crypto component will promote usage of the platform, in turn increasing usage and the price of BTT. But given its limited utility outside of the BitTorrent platform, it’s not as if it’s going to take off like a more general cryptocurrency might. For instance, it is built on a proof-of-stake mechanism and has cross-chain capability with Ethereum. Many, like my InvestorPlace colleague Muslim Farooque, argue this is due to BitTorrent’s limited use cases.Īs Farooque points out, the BitTorrent Chain (BTTC) has its strengths. However, even assuming the crypto bear market we’re experiencing now doesn’t last long, I’m doubtful a comeback will happen for BitTorrent in the long term. With the Federal Reserve growing more hawkish and set to raise interest rates in the coming months, risky assets are under pressure.
In the near term, there’s a lot weighing on the cryptocurrency market. With news of the new network launch having minimal impact on the token’s price, it’s tough to be confident about BTT’s prospects. Upside is Questionable in the Short and Long Term However, this too proved to be a short-lived spike. Admittedly, after taking a big dive in early December, likely due to marketwide factors (more below), it shot up 42% on news of the pending launch of the new crypto-enabled BitTorrent network. It made a brief rebound in August, only to struggle through the fall. Since then, this token has delivered middling performance. This phenomenon was short-lived, and BitTorrent came crashing back to Earth during the May 2021 crypto meltdown. It likely had more to do with the speculative trading frenzy going on at the time, with traders trying to get into the next Dogecoin (CCC: DOGE-USD). However, I wouldn’t say its wild moves last spring were due to excitement surrounding the “cryptoization” of this file-sharing service.
Besides the fact that BitTorrent had a big user base, Tron likely saw potential in adding a blockchain-based incentive component to the site as a great way to monetize it. It all started when crypto platform operator Tron bought the platform in June 2018. But how did BitTorrent, a blast from the past site associated with online piracy, get into the crypto game? As you likely know, this crypto is an offshoot of the peer-to-peer (P2P) file-sharing protocol of the same name.
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