Will Vechain replace Bitcoin?

It seems that Bitcoin has a new rival on the block. As cryptocurrencies plummet in value since the start of the year, VeChain has not yield and actually even grew by almost 30 percent.

About the VeChain

VeChain is priced $2.70  as of today on April 11th and stands as the 16th largest crypto based on its market cap. What made it so popular were attention-grabbing headlines of partnerships with a variety of companies. All of this improves adoption and makes it a useful asset to own.

Several industries including luxury goods, agriculture, logistics, food, and governments are already using Vechain blockchain technology. 

The VeChain Foundation, the company behind the cryptocurrency, has this year rebranded and renamed the crypto, Vechain Thor.

This apothesis is not a day, a logo, or an economic model but rather it is a full revamp from a private blockchain to a qualified decentralized application platform servicing public application, on a decentralized ledger, capable of evolving how the world defines business ecosystems.” Said the Vechain Foundation.

We chain Thor uses a mix of blockchain and a chip technology to track luxury goods and confirm that they’re not counterfeit. 

Tim Draper, well known Silicon Valley investor has also backed the cryptocurrency. Mr. Draper has invested in Skype, Tesla, and Bitcoin before turning his attention to Vechain. 

Last month, VeChain Foundation tweeted:

We see eye to eye with our investor, Tim Draper regarding the future of crypturrencies and use of blockchain solutions.

Mr. Draper has been a vocal backer of the cryptocurrency for some time now and said recently: 

In five years you’re going to walk in and try to pay fiat [a government-backed currency] for a Starbucks coffee, and the barista is going to laugh at you

Investors believe the corporate ties the cryptocurrency has made have boosted prices.

Derek Kim, head of research at BK Capital Management, said:

They have a really good way of marketing their relationships with companies they’re developing products for. The big catalyst for token price appreciation is company relationships

It’s price structure has prevented the sell off numerous other cryptocurrencies have experienced. In January, it was announced that those who hold the virtual currency for a longer period of time will receive more rewards and voting rights.

That structure makes token holder base a bit more sticky. They have to lock up tokens within the structure, which takes supply and selling pressure and protected them from the sell-off

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