The crypto market has been somewhat stagnant since the crash in May. Since this crash, Bitcoin ($BTC) is still down 16%, but it has recently gotten over $40,000. Check out TJ’s latest post where he takes a deep dive into the whole crypto market. For a better understanding of Chainlink, watch the quick, 3 minute video from 2020 tagged at the bottom before or after you read.
The Chart
Chainlink ($LINK) was first mentioned by us at around $3 in April of last year. Since then Link has reached a peak of $52.99 in the early days of May! It now rests at $23.75 after the crash, and shows strong resistance at $20. Only briefly did it slip under $20 when the crash first occurred.
Looking at the chart alone, Link is looking like a very strong buy. Whenever you look at a crypto chart, you almost have to look at Bitcoin’s. The first ever crypto currency heavily decides which way the overall market goes. Link has touched over $30 since the crash a handful of times, but has struggled to remain over it. However, the longer it can build strength in the mid 20s, the more of a buy it becomes.
Use Cases
Chainlink has some revolutionary use cases for an already revolutionary technology in blockchain. Use case is a term in crypto for what purpose a coin holds. I prefer to buy coins which have specific use cases, as I believe when there are specific goals for a project, it is easier to hone in. If a coin has a broad use case such as “developing NFTs” there isn’t enough there for me.
The main focal point of Chainlink is smart contracts and oracles. Chainlink can take real world data, which is considered “off-chain” and bring it on-chain, by way of the oracle. For instance, if a company wants to collect and analyze the attitude and behaviors of their employees and adjust their payroll accordingly, Chainlink can bridge this connection and adjust the payroll, extremely efficiently. The agreements made between the data and the payroll adjustment is considered the smart contract.
Chainlink also has dabbled into the highly popular NFT market. Recently, professional basketball player, Lamelo Ball of the Charlotte Hornets, partnered with Chainlink. He created four NFTs tied to different aspects of his play such as points, steals, etc. As his career progresses and his stats improve, Chainlink will take this data and apply it to the NFT, making it a dynamic NFT. Consider the dynamic being almost like a software update. The better Lamelo Ball does and the accolades he gains, theoretically the more valuable the NFT becomes. It is almost like a digital trading card. This can only be accomplished, by the power of Chainlink.
What The Future Holds
Chainlink is at a discount right now. Its use cases are practical and revolutionary. Its chart shows proof of potential. Even with the crash, Link is up 478% in the past 1 year. The next two points could make Link replicate that 1 year gain again this year.
Gas fees in cryptocurrencies is basically transaction costs in simple terms. Exchanges such as Ledger and Metamask charge a gas fee in purchases and sells, paid in Ethereum. This means even if you are buying Dogecoin, you still need some Ethereum in your wallet to pay the gas fee. There have been a number of reports coming out you will soon need Chainlink to pay the gas fee, and not Ethereum. This will directly lead to just more people holding Link in their wallets.
Chainlink will also undergo staking in the next 1-2 years as well. To simply put it, staking is similar to a dividend in the stock market. Right now you can earn interest on Link and other coins in certain exchanges, but this is not the same as staking. With staking you will be rewarded for the amount of a coin you hold, and will earn interest on the staked amount of the coin. Right now your actual holdings are put for collateral on the interest, but when staking is live your holdings will be safe, and the staked coins are what will be risked for the interest. All in all, accumulate your coins now, so you have a high staking priority when it comes time.
This is not the first and last time we have discussed Chainlink, there is a reason for this. As Warren Buffett and Charlie Munger said, when you see your perfect pitch, swing!
The Common Trader 
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