Now is as good a time as any to reassess our investment thesis on various cryptocurrencies. When prices are down, you either double down or hold. I am doubling down on Chainlink (LINK) because I believe in its future on the blockchain.
What is Chainlink? Chainlink is a decentralized oracle network that runs on top of a blockchain. Chainlink is agnostic, meaning that it can run atop the Ethereum blockchain and be modified to run on other blockchains. Seeing as though a new blockchain seems to grow every day, being universal is an essential factor in my bullish thesis.
What does Chainlink do? Being an oracle network means connecting to real-world data sources and combining information to find a solution. Smart contracts can then process the information to decide if it needs to be fulfilled.
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Huh? It acts as a medium between the real world and a smart contract. You see, the smart contract is actually dumb because it can’t access real-world data. It needs someone or something to tell it the status of the contract.
For example, let’s say we have a smart contract; this will pay Josh if The Witcher 3 wins the game of the year awards or Kris if Fallout 4 wins. The contract isn’t a yes or no situation—it requires real-time data from the physical world events.
Chainlink is unique because it doesn’t just go to one source and grab an answer—in the example, it would be a site like Ign.com. Chainlink gathers multiple data points and gives the best solution to the smart contract from reliable sources and its own data stores.
In the future, smart contracts will become more and more complex as we move into the era of decentralized finance (DeFi). These smart contracts will need to leverage an oracle network to execute their objective smartly and securely. It may as well be Chainlink.
Investing thesis. If you believe in blockchain, DeFi, decentralized autonomous organizations, etc., investing in Chainlink should be a given. There is nothing glamorous about what it doesn’t, but it is vital to smart contracts and their ability to execute orders.
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If you and your friend had a bet between the more popular sitcom, Cheers or Friends, how would you solve it? Would you Google it? But you would also have to define the word “popular” to ensure both sitcoms are compared equally. Congratulations, you just performed Chainlink’s job.
My portfolio. Chainlink (LINK) is the token I am most bullish on currently. It has been getting beatdown in the market lately, like everything else. However, I am receiving 4.5% interest to hold my position in Chainlink. This summer, we have been busy adding storm gutters to our houses in Flordia, so money is tight. However, I fully plan on jumping into Chainlink as soon as we complete these projects.
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Easy day. That is pretty much it for Chainlink. I usually don’t have a substantial investing thesis on my tokens. I just need to know what they are and what they do. We are very early in blockchain, DeFi, DAOs, etc. All we can do is make the best case for our future and be smart about our investments.
Yes, I am speculating a little because we don’t have annual summaries, budgets, sales reports, etc., as we do with the stock market. But, we are first movers, and we have to make some assumptions and speculate with good intent.
I am not just saying; I expect Chainlink to 3X over the next year. I am trying to form a good rationale for long-term investing. That’s the best we can do at this point with cryptocurrencies. Read more about Chainlink here. Enjoy and Happy Investing.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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