2024-04-14

Investing in XTZ: Path to Becoming a Millionaire During the Bull Run

2 min read

Tezos (XTZ) stands out as the native token of the Tezos blockchain platform, renowned for its smart contract capabilities and decentralized applications built on the OCaml programming language. Despite the impressive growth in the cryptocurrency market in recent months, XTZ still trades 86.2% below its historical peak reached in October 2021.

Understanding Tezos: Tezos is one of the oldest projects in the cryptocurrency market, with its alpha protocol version launched back in 2017, predating popular networks like Solana and Polygon. The network utilizes the Liquid Proof-of-Stake (LPoS) consensus algorithm, where randomly selected delegates create new blocks, which are then approved by other participants.

XTZ operates on an inflationary model, periodically destroying a portion of tokens to counteract price depreciation. It is utilized for rewarding users participating in block creation and approval, voting, and network fee payments.

Calculating XTZ Investment for Millionaire Status: To calculate the required XTZ investment to reach millionaire status when XTZ returns to its historical peak, the following formula can be used:

Number of tokens = Target amount / Expected future price,

Target amount = $1 million Expected future price = historical peak of $9.12 Therefore, to achieve a balance of $1 million, approximately 109,649 tokens need to be purchased. At the current price of $1.25 per token, the total cost would amount to $137,061.

Considerations and Disclaimers: Investors should acknowledge the extreme volatility of the cryptocurrency market and its susceptibility to “black swan” events. The provided calculations are based solely on current data and assumptions. Always prioritize risk and money management principles, and only trade with funds you can afford to lose.

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