How long should you hold NEM and when should you buy it to get the X's?

2 years ago 620

The NEM (XEM) cryptocurrency operates on the platform of the same name, which is an implementation of a peer-to-peer network with many features and original functions that distinguish it from other similar projects. The main competitor is Ethereum, and the NEM project itself is often called Asian ether. In this it competes with NEO, called Chinese Ether. These labels already allow us to imagine what NEM is - it is a 2nd generation blockchain that involves the use of smart contracts and introduces new technological solutions that overcome the problems identified in the practical application of the Ethereum (ETH) network by Vitalik Buterin.

The NEM rate has pleased investors with volatility and growth, so new heights are expected from this cryptocurrency in the future. To decide whether it is worth allocating a place in your investment portfolio for the XEM digital asset, you need to familiarize yourself with the idea of ​​the project and NEM forecasts, which were compiled for the cryptocurrency by the world's leading experts in financial markets and blockchain technologies.

General information about the project

The name NEM is an acronym that stands for New Economic Movement. Translated into Russian, these three words signify the emergence of the New Economic Movement. This name was chosen for a reason, because it reflects the essence of the project, which is to create a blockchain platform and cryptocurrency that could be fully used in every segment of the currently existing real sectors of the world economy.

A user of the famous bitcointalk forum, who is known under the fictitious pseudonym Utopian Future, is responsible for the creation of the project. On his initiative, a thread was created on this most popular Internet forum on January 19, 2014, where topics related to the creation and implementation of a new digital asset were discussed.

Initially, it was not planned to create a network and cryptocurrency from scratch. Utopian Future proposed to conduct a hard fork in the already existing NXT chain. However, the forum members were active and during the discussion, which attracted the attention of a large number of users, they decided to create their own original blockchain chain and cryptocurrency. Having received support, Utopian Future began creating the platform, which soon appeared in an alpha version, and then in a working beta.

After 3 years of development, on May 14, 2022, NEM announced the official launch of the Catapult engine, written in C++. With its advent, the XEM protocol became available for use in public and private networks of business corporations. Commercial structures, through the use of NEM Catapult, have the opportunity to comfortably transfer their business to the digital world, operating on the basis of a transparent blockchain chain.

Officially, the creators call the birthday of the XEM cryptocurrency the last day of March 2015. Then, on the 31st, a stable version of the NEM platform was presented to the world. Until the end of spring 2015, the XEM network attracted a lot of attention from users in Japan and other countries in the Asian region.

The reason for the success of NEM is its technological features, which are discussed in more detail below. It was they who contributed to the adoption of the XEM cryptocurrency and the growth of the exchange rate.

NEM Smart Asset System

The Smart Asset System allows you to fully customize how you use the platform's blockchain.

First, your namespace defines your home on the blockchain, where you can name your own tiles, provide easy-to-remember names for user addresses, and more.

Tessellations are then the basic building blocks of Smart Assets, which you can use to represent a variety of simple things: it could be a coin, a signature, a status update or more - you decide.

However, to create truly smart assets, the platform allows you to create Addresses that act as containers for Mosaics that can be linked to Multisig rules.

The address may simply represent the user, such as the account holder. But it can also represent an individual unique asset, such as a document or a song, or a package.

You can then update this asset through custom transactions.

XEM rate

Below is an online chart showing the exchange rate of the NEM cryptocurrency to the dollar and ruble. By default, weighted average quotes against the dollar are displayed, but if you wish, switch the list of available exchanges and see prices on individual trading platforms. The chart is initially linear, but at the top there are tabs for switching to bars (OHLC) and candles (Candles).

If you look at the history of NEM quotes on the chart online, you can see that from the moment the cryptocurrency appeared, the XEM rate was less than $0.05 and immediately entered a phase of active growth. Japanese banks became interested in the opportunities offered by XEM, provoking an increase in demand and, accordingly, the price, which rapidly flew up, doubling in the first months of 2016.

However, in August 2016, NEM found resistance at 29-30 cents. Although the developers were actively implementing technical solutions, improving the platform, the asset could not rise above this price level for a long time.

The situation persisted until the fall of 2022, when an NRI, a large Japanese bank, showed interest in the XEM cryptocurrency. Its management decided to test the NEM blockchain platform, as a result of which it turned out that the network is resistant to high loads and carries out many transactions without loss of speed. At the same time, no vulnerabilities for hacker attacks were identified, which is why NRI decided to enter into a partnership with the NEM team.

As soon as it became known about the signing of an agreement between NRI and NEM, other banking institutions immediately became interested in the XEM cryptocurrency, which provoked a powerful wave of growth and an increase in capitalization. In 2016, XEM’s capitalization was $2.5 billion, and in October 2022 – $9 billion, which allowed the cryptocurrency to break into the TOP 10 most capitalized digital assets according to CoinMerketCap.

Experts note that the success of NEM is an example of a successful combination of technical solutions and a well-thought-out product promotion strategy.

Cryptocurrency rate for today

One of the most basic rules of economics that applies in all cases is the law of supply and demand.
Cryptocurrency quotes depend on the availability of coins. If there is a shortage of some crypto on the free market (no one wants to sell it), it becomes rare even with the same demand, which is logically accompanied by an increase in price. This phenomenon is observed in some currencies such as Bitcoin or Litecoin. Approximately every 4 years, a so-called halving occurs, which reduces the rate at which cryptocurrencies are released into circulation. This often has a positive effect on price dynamics.

Taking Bitcoin as an example, its flaw is firmly encoded into the Bitcoin blockchain and the final supply of 21 million coins is expected to be reached in 2140.

In the second case, the opposite is true, when virtual money is sometimes even in excess. In this case, low demand is expected, as well as a decrease in the price of cryptocurrency. This phenomenon is observed with ICO cryptocurrencies, which can be purchased directly from developers in advance before they appear. Once a crypto is released and traded on exchanges, the first step is often a downward move, with some investors immediately selling newly purchased tokens.

Technical parameters of the network and competitive aspects of the product

The technical features of the network include:

1. The NEM blockchain network is stable, enabling the automatic creation of new blocks. I am pleased with the high speed of this parameter - 1 per minute. Even in 2022 this is an excellent indicator, and in 2015, when the project first appeared, this was a record high value.
2. Easy implementation. To become a member of the network, you only need to install the appropriate software. Moreover, the software was created not by some third-party developers, but by the company itself. On the official NEM (XEM) website, users will find everything they need - online and PC wallets, miners, etc. All software is created in different variations for each popular operating system - Microsoft, Linux, MacOS, Android, iOS.
3. Reliability and safety. After implementing the Catapult engine, the likelihood of a system failure or a successful hacker attack is reduced to zero. The protocol initiates a circular self-check to avoid errors or double processing of the same transaction.
4. Translation processing. The main problem with ETH and other popular blockchains is poor scalability, because as the load increases, the transaction processing speed drops. However, on the NEM network, the cryptocurrency transfer speed is a matter of seconds. The platform supports processing 4 thousand transactions in 1 second.
5. The maximum number of XEM coins is limited to 9 billion. Compared to competitors who allow an increase in emission, the project developers promised that no new coins will appear on the network.
6. The network is built around an original consensus algorithm called PoI - Proof-of-Importance. To mine a new block and receive a reward, you have to control 3 parameters during the mining process: the total volume of cryptocurrency, the number of completed transactions and the time period for creating an account.

Platform technical details

• A total of 8,999,999,999 coins were issued. There is no possibility of mining.
• Instead of mining, delegated harvesting is offered - in order to form a block, the user must have at least 10,000 XEM on their balance and have a synchronized node, then the XEM coins received from the block will be credited to the investor’s account.
• Low commission cost (0.01%).
• Transactions are confirmed in a short time;
• The number of transactions per second reaches 3000;
• NEM supports tokenization of user assets: registering property, launching an ICO, issuing cryptocurrency, intellectual property rights, conducting voting, launching business projects. This does not require the participation of intermediaries.

Proof-of-importance (proof of significance)

The NEM platform ensures transparency of all transactions. The POI algorithm includes 3 main parameters: the amount of XEM contained (10 percent is added to the users’ balance daily), the number of transactions, the amount in the account history and the recipients to whose account the transactions are received.

The “Node-client” model is supported. The node (NIS) and user (NCC) operate independently, avoiding copying the entire block chain.

The POI algorithm includes transactions with built-in multi-signature. This standard is provided for all services. Multi-signature accounts can be used to prevent sybil attacks and amplify votes during voting.

The figure shows a transaction graph in the form of an outgoing matrix from 04/29/2015, depicting 1,456 harvesting users:

Namespace

NEM implements namespaces as a domain name system on the Internet, similar in structure to the ICANN centralized network. The namespaces system consists of high-level domains and subdomains. Domain custodians can create subdomains for business or project accounts, maintaining a mosaic reputation system.

Mosaics

Mosaics represent user assets on the blockchain. They are configured by the users themselves to assign certain qualities: the possibility or impossibility of divisibility, transferability, endowment with their own description, etc. Mosaics can be used in the form of currency, coupons, vouchers, securities or loyalty points. The number of mosaics can be either fixed or variable. Mosaic names are issued in the NEM namespace, where they are assigned subdomain names.

Supernodes Reputation System

The supernodes reward program (reputation system) allows the NEM platform to reward harvesters who run active nodes. Anyone holding 3,000,000 XEM and meeting the minimum system requirements will receive 140,000 XEM distributed between harvesters daily.

Mining NEM

Since we are talking about mining the NEM cryptocurrency, we should dwell in more detail on the process of mining new coins. As already mentioned, the XEM network uses the Proof-of-Importance protocol, and not the Proof-of-Work protocol like Bitcoin or Ethereum. First of all, this information means that it will not be possible to mine XEM using cards or processors.

The name of the Proof-of-Importance algorithm used (abbr. PoI) is translated into Russian as proof of importance. Two other popular algorithms are Proof-of-Work (proof of work done) and Proof-of-Stake (proof of ownership). PoI is most similar to PoS (Proof-of-Stake), since both of these consensuses involve mining new blocks without the use of computer hardware.

However, PoS is, in fact, a rather primitive algorithm, since the one who has more money in his wallet receives a more generous reward. In the case of NEM mining, everything is more complicated, since the reward depends on several factors at once, and here you can’t just buy a lot of cryptocurrency and sit and watch it become even more.

To increase production levels, it is necessary to control the following variables:

1. Transactions. The network takes into account how much a particular node has spent in cryptocurrencies over a 30-day period.
2. Cryptocurrency volume. The number of coins in your wallet also plays a role.
3. Related nodes. If a node frequently exchanges data with other nodes, then they are connected into one cluster. Presence in the cluster increases the level of remuneration, and an isolated position decreases it.

Advantages of PoI over PoS and PoW:

1. In PoS, it is important to stock up on as many coins as possible, after which their gradual increase will begin. Thus, network participants lack motivation to spend money and conduct transactions. With PoI, mining performance is directly related to node activity. Therefore, it is beneficial for users to spend and transfer coins.
2. Because there is no cost associated with generating new blocks, in the event of a fork, individual participants can generate coins on both networks obtained through the split. Therefore, theoretically, a fork could stretch out forever, but the XEM network is protected from such collapses.

On the NEM network, mining is called harvesting. This term is derived from the English word harvesting, which translated into Russian means “collection”. The name is derived from the specific actions of the miner, who collects transactions and payments. Moreover, in order to profitably engage in harvesting, you need to increase the level of importance of your own node (account), demonstrating activity.

With traditional mining, a certain number of coins circulate in the network, and the rest are mined. NEM is a little different. Here, all 9 billion coins are already online. Therefore, the miner does not mine new blocks, but receives a reward for supporting the system, thereby collecting a harvest in the form of XEM coins for himself.

To start harvesting, you just need to register your wallet and top it up with 10 thousand XEM coins.

Important: the wallet must be installed officially, and after replenishing the balance, it must be installed from the website of the XEM mining software developers. The system does not put forward strict requirements for hardware, but the computer should not slow down, so it still doesn’t hurt to worry about a good processor and card.

Another feature of XEM mining is the ability to assign individual blocks to selected network participants. Therefore, a certain rating is constantly being formed from harvesters, where to advance to the top you need uninterrupted PC operation, a large volume of transactions and solid cryptocurrency reserves. Moreover, it is difficult to say which parameter is more important, since the system evaluates performance comprehensively, analyzing the combination of all three values.

Reserved and unreserved NEM (XEM)

Each account has balances of reserved and unreserved XEM. Many benefits of the NEM network (for example, the ability to collect or the importance score) are based on the reserved balance. XEM gradually becomes reserved over time: every 1440 blocks (approximately 24 hours) 10% of XEM from the unreserved balance moves to the reserved balance. When someone sends XEM, the cryptocurrency is taken from both balances, but it goes to the recipient's unreserved balance. This discourages users from quickly trading XEM, and encourages users to store XEM, however, the importance algorithm discourages them from hoarding.

Where to buy XEM

The easiest way to buy NEM cryptocurrency is at one of the cryptocurrency exchanges or exchange offices. For a number of reasons, it is better for users who are looking to invest or speculate in digital assets to choose the first option and buy XEM on a crypto exchange.

Since the coin gained wide popularity and confidently remained in the TOP 10 in 2022 (now at the end of 2022 it is in 16th place), the NEM cryptocurrency was listed on almost all crypto exchanges. Among large popular platforms, the largest XEM trading volumes were recorded on:

• Binance;
• HitBTC;
• Poloniex;
• Bittrex;
• Huobi;
• Bithumb;
• LiveCoin;
• EXMO.

For citizens of the post-Soviet space, it is recommended to pay attention to the last 2 sites, since unlike others, here you can buy XEM for dollars or rubles by topping up your account balance on the crypto exchange using AdvCash, Qiwi, Yandex Money, Perfect Money and other convenient payment systems.

On other crypto exchanges, for example, on the most popular Binance, XEM is traded in relation to cryptocurrencies, and it is impossible to buy coins for fiat - rubles or dollars - there.

How to buy NEM tokens

Electronic money is bought and exchanged on exchanges.

Good articles in continuation: Which cryptocurrency should I invest in? Which exchange should I trade cryptocurrency on?

There are many exchange offices operating on the network that, for a small commission fee, will quickly convert cryptocurrency into cash, into electronic means of other payment systems, and exchange it for dollars, euros, rubles and other currencies.

Cryptocurrency exchanges trading NEM token:

• LiveCoin
• YObit
• EXMO

Article on the topic: Where to buy cryptocurrency

Where to store NEM

To store purchased coins, it is best to use the Nanowallet wallet, downloaded from the official NEM website. To get it and start using it, do the following:

1. First, go to the official NEM website. Then select the operating system and proceed to download NEM Nano Wallet.
2. The site has added an offer to download an installer for a PC with data saved on your hard drive and in the Dropbox cloud service.
3. Having received the archive, unpack it and press start.
4. A page will open in the browser window where the wallet registration takes place. By default, the information is presented in English, but the selection menu contains Russian. Therefore, we find, switch, and the interface changes to a language understandable to citizens of the post-Soviet space.
5. By selecting “Registration”, a new browser page will load, where the user will be asked to create a simple, smart or using a private key.
6. Then they fill out the form, confirm the entered information and wait until the Wallet file and the access key to it are created in the system. Important: keep your private key in a safe place!

Prospects and forecasts from experts

Positive forecasts for the NEM platform are supported by most experts in the field of cryptocurrencies. This, of course, is facilitated by the presence of a working product.

In 2022, the developers presented an updated roadmap for the next two years. The implementation of the planned steps fuels the investment attractiveness of NEM and provokes an increase in the exchange rate of the internal currency XEM.

According to our editors, the NEM cryptocurrency will give “X”:

• she is too underrated;
• technology is used in the real world;
• New large-scale events related to the platform are coming, they should once again return public interest in this asset.

Why you should invest in XEM

Since the NEM rate is growing from year to year, as is the capitalization, investors are asking themselves whether it is worth investing in this project from current levels and whether the price will continue to rise. To answer these questions, let's look at the available facts.

Blockchain industry experts speak positively about NEM, recognizing this platform as reliable and fast, allowing you to legally move funds from different parts of the world in a matter of seconds and with minimal costs. Therefore, it is correct to treat the XEM cryptocurrency as an asset of a serious project with a real prospect. This is not just another shitcoin invented for use in pump-and-dump strategies, but a valuable asset.

Recall that in Japan, financial institutions immediately became interested in NEM. It is naive to assume that financial analysts in one of the most developed countries in the world would begin to study and implement a cryptocurrency that has no prospects. In addition, Japan was among the first to officially approve payments in digital assets, recognizing cryptocurrencies as a real means of payment.

Don’t forget that in Japan, banking and financial institutions need a license and cash reserves to operate with cryptocurrency. The cost of the first is 300 thousand dollars, and the value of the second is 100 thousand USD. This is another important fact, because license purchases say that banks highly appreciate the potential of NEM, since they are making such impressive expenses.

The following factors contribute to the belief in further continued growth of XEM:

1. Blockchain offers original technical solutions. For example, the PoI algorithm seems to be the most successful and fair compared to PoW, PoS and modifications of the latter.
2. Since its inception, NEM has been doing everything to join the real economy sector. This is important because individual governments are doing everything possible to begin regulating cryptocurrencies. Now norms and standards are being created that will make it possible to recognize some crypto-assets as legal. And XEM makes every effort to operate within the law, which eliminates the only significant risk that would prevent the project from growing.
3. The project has already entered into strategic partnerships with large financial institutions, and money, as we know, leads to money. Among the partners are the already mentioned NRI bank, a consulting company from Australia Blockchain Global Limited, a software development company from the Land of the Rising Sun - Tech Bureau. Also on the list of partners are large banks from Malaysia, South Korea and Japan.
4. In 2022, the NEM network is already used to carry out banking transactions, purchase goods in online stores, and instant transfers of funds throughout the planet. So, unlike many other startups, this one already demonstrates a real and in-demand product, which is appreciated by large business entities.

What is Mijin?

Mijin is a private blockchain created using platform software.

Blockchain is being explored for use in a number of areas of the fintech industry, with companies claiming it will reduce banking costs by up to 90%, making banking more secure.

Mijin is being tested all over the world, but it has a relatively large presence in Japan. Several financial institutions have added Mijin to their online banking services.

All features available with the platform are also available in Mijin. However, Mijin has the added benefit of supporting smart contracts.

The biggest advantage of Mijin over NEM is transaction speed. Soon after its launch in 2015, Mijin achieved 25 transactions per second on the global network. By 2016, it reached 5,000 transactions per second.

By the end of 2016, Mijin reached 10,000 transactions per second (local network) and 100 transactions per second (wide area network).

Mijin has set a goal of reducing the cost of banking infrastructure by 90% by the fourth quarter of 2022.

Development plan

According to the project development plan (road map), in 2022:

1. A co-working center and laboratory for Blockchain Innovation research have been opened. Each such organization should help corporations that are attracted by the idea of ​​moving their business to the blockchain sphere, implement similar ideas and implement decentralized technologies.
2. It is planned to continue work on expanding the infrastructure, for which $40 million in additional investments have been attracted.
3. The creators of XEM announced their desire to organize the work of a crypto exchange.

Given this information, there is no doubt that the rate of the XEM cryptocurrency will continue to grow in the long term. Even very cautious analysts predict that the price will soon rise several times.

What are the goals of the project?

Blockchain NEM has been developed for use in many industries. The goal of the project is to improve the efficiency of information management and large volumes of data in any area:

• In government agencies. The use of blockchain technology in government makes it possible to record records on an accessible, immutable distributed ledger. This will make it possible to increase the level of trust in government agencies and prevent acts of corruption.
• In educational institutions. Using NEM blockchain technologies, it is possible to organize the recording of grades, testing, and storage of information about students.
• In medicine. Storing a register of visitors, medical histories, a register of specialists.

The NEM Fund finances promising startups in the development of new technologies based on Blockchain.

Forecasts for 2018-2023

When studying price forecasts for the NEM (XEM) cryptocurrency at the end of 2022, a potential investor will be faced with different opinions. Moreover, if for other cryptocurrencies these opinions differ only in how much and for what period the price will increase, then in the case of XEM there are forecasts in which they expect not growth, but a fall in the rate.

For example, the wallet investor service, where forecasts are made based solely on technical analysis, assumes that the XEM rate will make impulse movements in the coming years. The following assessments are given:

• by the end of 2022 the price will increase to $0.92;
• by the end of 2022 it will slide to $0.83;
• by the end of 2022 it will continue to decline to $0.70;
• by December 2022 it will fall to $0.6.

It is important to understand that such forecasts take into account only the current dynamics, and since the cryptocurrency market is going through hard times in 2022, the long-term trend for NEM is still downward. However, it is important to understand that a change in the fundamental background will instantly change such forecasts.

If we take into account that the crypto market develops cyclically, and as the period of stagnation increases, the duration of the new wave of growth will also increase, then in this case the forecasts for XEM will look different:

• by the end of 2022 – $0.2;
• by the end of 2022 – $0.8;
• by December 2022 – $2.3;
• by the end of 2022 – $12;
• closer to the end of 2023 – $50;
• a rise above $100 is expected in 2024.

If you find an error, please select a piece of text and press Ctrl+Enter.

Catapult technology

In 2016, the Japanese blockchain startup, operator of one of the largest cryptocurrency exchange services Zaif, entered into a partnership with the platform and announced that the Mijin corporate network would release a software update to the NEM Catapult.

Catapult has been in development since early 2016 and is an enhanced version of NEM/Mijin, written in C++, designed to increase throughput, optimize network communications and network scalability, as well as more advanced features.

Main features of the XEM cryptocurrency

1. First of all, it is worth noting a feature that applies to all digital currencies, namely decentralization. That is, NEM cannot be affected by various external factors.
2. One block of this cryptocurrency is generated in just 60 seconds - according to this indicator, XEM is superior not only to the more well-known digital money, but also to Bitcoin itself.
3. It is important to note the maximum ease of use of both the software itself and cryptocurrency wallets. Moreover, such simplicity and clarity of use is rapidly gaining popularity not only among beginners, but also among the entire digital community.
4. Maximum protection and security of wallets and transactions. All this is ensured through the development and use of a fundamentally new action code.
5. Of course, it is worth mentioning the price of this cryptocurrency. Thus, in the first three months of its existence and active development, the cost of one NEM (XEM) coin increased by an impressive 1147%! At the moment, the price of 1 coin is $0.167 – 90 days ago it cost $0.051. The total market capitalization of the cryptocurrency is $1,506,597,861 with a daily trading volume of $3,954,600, which ensures its place in the list of the most popular cryptocurrencies according to these parameters.
6. As for the technical features, this cryptocurrency has a blockchain that runs on a modernized POS model. Thus, the probability of creating a whole block of coins will be higher for those users who actively use its capabilities. The reward for one block is called Harvest, which translates as “harvest”.
7. A total of 9 billion coins have been issued and no additional issue is planned in the future.