A few days ago it emerged that Justin Sun had bought Bit Torrent for $140 million. This excited the market given that it takes Tron closer to achieving its goals of becoming the key element of the decentralized internet. However, something interesting is coming up with regards to this deal, one that could see the value of Tron (TRX) skyrocket in the next few months. According to a party privy to the deal, Justin bought Bit torrent with two objectives. The first one is to give Tron (TRX) an air of legitimacy, following the never ending claims of copying Ethereum and Filecoin. The second one is the potential of the Bit torrent network to be used in mining coins. These two objectives are very strategic and will have a huge impact on the value of Tron.
Starting with the issue of legitimacy, how people perceive a coin plays a major role to its long-term value. For as long as there is a section of investors who believe that Tron (TRX) is a plagiarized version of another platform, it will be difficult for it to effectively compete. For instance, a developer would choose to create Dapps on the Ethereum blockchain instead of a clowned version of it. However, with this purchase, the Tron blockchain will now have an air of legitimacy at the same level as the likes of Ethereum. It will actually have an edge over other platform blockchains because its technical features are way more advanced. For instance, when compared to Ethereum, Tron is faster with transactions speeds of over 1000 transactions per second. That’s way higher than Ethereum’s 10 -15 transactions per second. Tron is also a highly scalable blockchain, an issue that Ethereum has struggled to solve, and is still looking for solutions. With this in mind, it’s not hard to see why the Bit torrent purchase is a big deal for Tron (TRX), and will drive up its value in the long-run.
On the issue of crypto mining, buying Bit torrent is probably the most strategic moves that Justin Sun has made for Tron. That’s because as cryptocurrencies become more mainstream, mining will be big business. Therefore, by positioning itself in the middle of this frontier through bit torrent, Tron’s intrinsic value will increase substantially. This is one of the factors that could push up the value of Tron (TRX) to over $1 in the next one year.
In essence, the decision by Justin to buy Bit torrent is probably the best decision ever, for the good of Tron. What’s even more interesting is that this news came out when Tron (TRX) is in the process of launching its main net. This has added to the overall legitimacy of the Tron blockchain in the eyes of both investors and developers, further pushing up its fundamental value.
A combination of all these factors make Tron (TRX) one of the most undervalued cryptos in the market today, when valued at under $0.05. Anyone buying into Tron at these price levels stands to reap big, when it rallies towards a dollar in the future.