Over the past decade, many corporations and governments began implementing distributed ledger technologies – such as blockchain technology – to take advantage of their efficiency. Yet, numerous governments and corporations do not support blockchain technology, with some even banning the use of cryptocurrencies inside their territory. As an ever-growing market, the cryptocurrency market is being enriched with different types of cryptocurrencies daily – most of which are unique. But, there is a problem: The proof-of-Work mechanism spends too much energy.
Energy Consumption – An issue for Proof-of-Work (PoW)
There is one major issue that comes with this technology, though. Most of the top cryptocurrencies like Bitcoin and Ethereum use a Proof-of-Work mechanism, meaning that powerful computers that use enormous amounts of electricity need to be used to validate and secure the network. These computers are also known as Miners or Nodes. Undoubtedly, these miners use a huge amount of power to run, polluting the earth as they work. Bitcoin’s network alone uses more energy than the whole country of Argentina.
Because of all this heat that has been circulating around Bitcoin and other cryptocurrencies that use the traditional Proof-of-Work mechanism to validate and secure their networks, a new network came into being – the Hedera Network. What is Hedera Network? How is it different from traditional Blockchain? What is HBAR? Through this article, we will do our best to elaborate as much as we can on these questions and their answers.
What is Hedera Hashgraph (HBAR)?
Hedera Hashgraph was founded by Leemon Baird, a computer scientist who is the co-founder and chief technical officer of Swirlds; the latter holds patents that cover the Hashgraph algorithm. Its initial release took place in 2017. Hedera Hashgraph is, in one way or the other, a governing body that consists of many corporations including giants like Boeing, LG, Google, Swirlds, and IBM. This group is known as the Hedera Governing Council and they run the core network nodes of this network, being the only ones that are allowed to vote for any changes on the network. That being said, you can still propose changes to the network by sending a Hedera Improvement Proposal (HIP) to the council.
Another important thing that we must mention is that, unlike most cryptocurrency networks, Hedera Hashgraph is not open source. The network was released as an open review network which means that the code that is used is only available for reviewing, compiling, and testing. Many experts think that this is because the team behind Hedera does not want any forks of Hedera to ever exist. As mentioned before, Hedera does not use blockchain technology but rather uses directed acyclic graph – another type of distributed ledger technology. This technology makes Hedera faster than most of the other networks, allowing it to process more than 10,000 transactions per second. However, this TPS is limited to wallet-to-wallet transactions on the Hedera network.
Also, Hedera Hashgraph has its own native token called HBAR and is listed in many crypto exchanges, the most notable ones being Binance, OKEx, Paybito, and Bittrex.
HBAR Price Analysis
According to Coinmarketcap, after entering the market with a price of $0.08, HBAR experienced a rapid decrease in its price days after its first appearance – with its price falling as low as $0.01. However, it came back viciously in less than a year, reaching a price of $0.068 in February 2020; a price around which it sat throughout the whole year. Hedera Hashgraph has had a very successful run this year too, seeing huge increases in its price. This last bull run proved itself extremely fruitful for the coin’s price, during which it hit the price of $0.40, setting a new all-time high. HBAR entered the year 2021 with a price of $0.03, and only 4 months into the year, it experienced an increase of 1233%. At the time of writing, the coin has a price of $0.19, encountering a 6% decrease from yesterday.
HBAR Price Prediction 2021
Many prediction websites believe that Hedera might continue to have a successful run in 2021, with its price rapidly increasing. According to Coinquora, the coin might reach the price of $2 if the market gets back to being bullish – something that is expected by many experts. On the contrary, if the market continues its bearish run, HBAR may close this year with a price of $0.12. Another forecast regarding the coin was done by Paypervids, which estimates a mindblowing price of $4.75 for HBAR by the end of 2021.
HBAR Price Prediction 2022
Being backed by numerous global corporations, Hedera Hashgraph has enough support for its prices to break through the roof. Even though it is not that transparent, Hedera is still very new to the cryptocurrency market and has a lot of time to update its policies and ts way of functioning. Additionally, this third-generation public ledger apparently surpasses major cryptocurrencies in terms of TPS and costs, being able to process way more transactions per second with fees as low as $0.001 per transaction.
As stated above, HBAR has a very solid foundation and is a good project, even though it still needs to develop in terms of liability to the public. According to a prediction done by Tradingbeasts, the coin might continue its gradual increase throughout the year 2022 as well, reaching a price of $0.36 by the end of it. An additional forecast done by Coinskid predicts a similar future price for HBAR, according to which the price of the coin may sit somewhere between $0.27-$0.34 by the end of 2022.
On the contrary, Paypervid has a very bullish forecast for the price of HBAR, putting it at $5.26 by the end of 2022. Additionally, they predict that the coin might reach prices as high as $16.87 before 2023; however, that is highly unlikely.
Price Prediction For The Next Five Years
Hedera Hashgraph has a long way to go before it gets worldwide acceptance – just as most cryptocurrencies on the market. Because Hedera uses a different type of distributed ledger technology than most cryptocurrencies, it may be accepted by the parties that do not support cryptocurrencies because of the blockchain technology they are built upon.
That being said, the future of HBAR is still unknown, but most experts believe that it will be bright. The prices are expected to continue increasing throughout the upcoming years, potentially reaching heights of $4-$20 by the end of 2026. According to Coinskid, the price of HBAR might hit the $1 mark in mid-2025. Alongside Coinskid are the predictions done by Coinpedia, stating that the coin may sit between $1.5-$4.5 by the end of the upcoming five years.
Hedera has all the components to become an even more successful cryptocurrency; however, only a portion of its total supply is circulating. HBAR has a total supply of 50 billion and for it to hit the price of $10, it would need to have a market capitalization of half a trillion – something that only Bitcoin and Ethereum were able to achieve to this day. If Hedera does not burn or enhance their tokenomics, they may have a harder time reaching their desired price marks.
Our Price Prediction
At Crypto Academy after analyzing the market surrounding HBAR, we believe that this coin might continue its bullish run throughout 2021, potentially seeing a 478% increase and ending the year with a price of $0.80-$1.10. If our predictions are correct, the coin might reach a new all-time high this year. Since Hedera presents itself as unique and very efficient in the market, we think that it will continue its development with no intention to stop.
Our predictions show that Hedera may continue its growth throughout the years, possibly hitting the price of $5 in 2024. This rapid and stable growth might continue through the next few years, potentially ending a five-year period with a price between $7.30-$10.91.
HBAR Market Price Predictions
Let us take a look at what other prediction platforms have to say about the future price of HBAR.
According to the predictions done by Walletinvestor, the price of the coin is set to increase slowly but surely. Their forecast shows that HBAR might enter the year 2022 with a price of $0.51 and continue to grow, potentially hitting the price of $0.70 exactly 1 year after the time of writing. They believe that the coin may continue its growth, hitting a price of $2.57 by the end of five years.
Digitalcoinprice forecast states that the coin might end the year 2021 with a price of $0.30, experiencing an increase of 57% in a matter of 6 months. According to them, the year 2022 might be a stable year for HBAR, seeing price movements of only +-20% and closing the year with a potential price of $0.36. The same can be said for the other years, during which the coin is predicted to steadily increase in price. Digitalcoinprice predictions also show us that HBAR may be worth $0.74 by the end of 2026.
Govcapital predicts the price of HBAR might continue to recover after the last market correction and get back to its current all-time high by the end of 2021, hitting the price of $0.40 once again. That is not all that Govcapital has in store for HBAR. Their forecast shows another bullish run for the coin by the beginning of the year 2022, during which the coin is thought to possibly hit prices as high as $0.73. Additionally, they estimate that the HBAR may hit the $1 mark at the beginning of January 2023 and close the five-year period with a potential price of $5.40.
Hedera Hashgraph Historic Price Sentiments
HBAR started this year with a considerable price, however, by October 2019, Hedera had reached a price of $0.08. It kept this price for some weeks before dipping and its prices plummeting to $0.015 in December 2019.
At the beginning of this year, the price of HBAR continued to fall, going as low as $0.011 by the end of January. Everything changed in the upcoming month during which the coin’s price skyrocketed, with its price increasing 580% and hitting a price of $0.068 in a matter of days. The altcoin continued to dwell around that price for the whole year, ending it with a price of $0.032.
Who are the 16 corporations which govern Hedera Hashgraph?
Hedera is owned and governed by Avery Dennison, LG, Boeing, Magalu, Dentons, Nomura, Deutsche Telekom, Swirlds, DLA Paper, TATA Communications, Eftpos, FIS, UCL, Google, Wipro, IBM, and Zain.
Is it worth investing in HBAR?
According to many prediction platforms and experts, yes investing in HBAR is worth it and may probably leave you with massive gains throughout the next few years.
Is there any chance of HBAR’s price crashing in the future?
Yes, although it is very unlikely to happen considering its utility and ownership.
Will HBAR hit $1 by the end of 2021?
It is expected that HBAR may reach the price of $1 by the end of 2021. If it doesn’t achieve this milestone by 2021, it is highly likely that it may reach that price during 2022.
- Cryptocurrencies like Bitcoin and Ethereum networks use excessive amounts of electricity to secure and validate their networks.
- Instead of Blockchain, Hedera uses Directed Acyclic Graph which is a different type of distributed ledger technology.
- Hedera Hashgraph claims to be able to process 10,000+ transactions per second.
- The Hashgraph network has one native token called HBAR.
- Only a portion of the 50 billion total supply of HBAR coins is currently circulating.
- It is possible for HBAR to reach the $1 milestone in the next two years.
- The team behind Hedera is a bit hesitant when it comes to making changes to their network, and according to CoinBureau, this is very concerning.