Stellar will stay strong in the long-term.Here is why

Since May 23th in the last week, the crytocurrency market experienced wide-ranging slump. As for Bitcoin, it started to slump on May 23th from a price range of around $8500 , and soon dropped to around $7500 on May 25th , finally lingering around $7300-$7500. Then according to data from citicoin.com, the price of Bitcoin even fell to the lowest price level, lower than $7200. What’t more, the downward trend move seems to be contagious, Stellar, which maintained a slight upward momentum during the last week, started to slump on Monday. However, in my view, Stellar will stay strong in the long-term though it still under the bearish market.

This article is going to explain why Stellar will still maintain a upward trend in the long-term compared with Bitcoin

1. An alternative of fiat currency VS A medium between fiat currency

When Bitcoin debuted ten years ago, it was conceptualized as an alternative of fiat currency and the advent of Bitcoin and Bitcoin system heralds the formation of a brand-new issuance system and delegation of some central institutions. This somehow put Bitcoin in the complete opposite position from fiat currency. Therefore, we are easier for us to read news coverage reporting about the “war” between Bitcoin and the authority. However, when it comes to Stellar, rather than an opponent, stellar is more likely to be the friend of fiat currency. It acts as a medium between fiat currency and central banks, by supplying technical support.

2. An asset VS A tool

Though Bitcoin, in the beginning , first debuted as an alternative of fiat currency. However, rather than an substitute for dollar or RMB, it is more like an asset, then holders would prefer to speculate on it, then using it as a medium of exchange, in other words ,a currency. However, Stellar on the other hand, is a tool used to streamline the process of cross-border money transfer, to the point of faster, lower cost, and more efficient. To conclude, it is more practical and useful. Rather than being constricted within the cryto-universe , it seeks for its foundation in the real world.

Tom Lee told that Bitcoin is still be promising, for with the piling of financial institution, it will drive the price up. However, for stellar, it has already built the foundation in the real world.