Decred (DCR.X)
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Investing in Decred (DCR): the bull and the bear case (January 2019)

Rajlaxmi Sahu | 2:36 pm ET, 22 Jan 2019

Decred (DCR.X) is trading at $17.37, up 3.72% in the course of the last 24 hours. Decred is described as an autonomous digital currency with a hybrid consensus system where the network governance is placed in stakeholders who decide upon rules-based voting. Decred is said to be highly decentralized and sustainable blockchain network.

When it comes to investing in Decred, these are some frequently asked questions: 

  • Is Decred currently a buy or a sell?
  • Should I sell or hold Decred today?
  • Is Decred good buy/investment opportunity?

Here are the reasons to buy Decred (the bull case):

1. Decred is community-driven, which means that the network is highly decentralized due to the fact that all decision-making rests with stakeholders who have created a self-governing model. 

2. Thanks to the hybrid mining mechanism, Decred is immune to 51% attacks, diminishing factors that could cause double spending on the network. 

3. It provides unique adaptability because of the innovative hybrid proof-of-work (PoW) proof-of-stake (PoS) consensus voting system that is based on a modular codebase.

Here are the reasons to sell Decred (the bear case):

1. Just like Bitcoin, Decred is capped at 21 million and there is also a reduction in the rewards after 6,144 blocks, which means that miners will be receiving lower block rewards for validating transactions over time. 

2. Switching from a middleman-operated centralized governing model to a decentralized self-governing DAO can't happen overnight, which is why DCR has low market adoption. 

3. Stakeholders that have more DCR units have more power when voting, which shows how a democratized self-governing network can turn into an oligarchy. Moreover, block-creation time for DCR is 5 minutes in the market where come cryptocurrencies can process 1,000 transactions per second. 

Over the last 30 days, DCR.X dropped -3.67%, additionally recording -86.6% decline YTD.  Its 30-day return is 4.03 percentage points higher than the 30-day return of Bitcoin (BTC.X).

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


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