Previously, BitTorrent had a bad reputation among movie studios. For a long time, there has been a decentralized peer-to-peer sharing protocol. It was primarily used to download movies before Netflix (NASDAQ: NFLX) and video streaming became popular. According to CoinGape, BitTorrent has evolved since then.
It has, in particular, signed a number of agreements with major film studios and TV film rights companies. This concludes the lengthy legal battle against trackers who used its torrent file-sharing technology. BitTorrent technology enabled one user to seed a part of a movie or videogame and others to contribute to it in a federated trying to pull together the new film.
Besides this, BitTorrent technologies have increased into new fields since then. ColdStack, a sharded storage and virtualized hub firm, and the BitTorrent File Sharing System (BTFS) recently signed a deal. Coldstack’s BTFS-based technology allows anyone to store and retrieve data from a variety of cloud data storage. It also aids in tokenizing any file and keeping it secure in the Cloud. It can then be sold as an NFT (non-fungible token).
Performance gaining traction
It also guides that the BTFS technology is so well, with a strong track record and a productive history. It also doesn’t hinder that the BTT token is linked to another cryptocurrency (Tronix), which has also had a good track record — up over 450 percent so far this year.
According to Coindesk on May 8, BTT crypto has a market capitalization of $7.39 billion. Coinmarketcap, on the other hand, estimates its market value at $4.5 billion. In any case, it appears to be far too low for a protocol and blockchain technology with 100 million MAUs. In comparison, Ethereum had approximately 100 million unique addresses as of June 2020. That could imply that it has fewer than 100 MAUs, as one MAU may have multiple addresses. However, Ethereum has a market capitalization of $450 million.
BitTorrent and Ethereum
To put it another way, BitTorrent is undervalued in comparison to Ethereum, despite the fact that ETH is clearly more popular as a cryptocurrency than BTT. BTT could, for example, rise from $7.39 billion to $450 billion at parity. Even at a 50% discount to ETH, or $225 billion, BTT is worth 30 times its current value ($225 billion / $7.39 billion). This means that BTT cryptocurrency has the potential to increase 29.5 times (i.e. 30.5 minus 1).
The potential high returns attracts speculative investors
For instance, here’s how to calculate the expected return: use probability analysis. For example, suppose there is a 10% chance that BTT will rise 29.5 times (i.e., 2950 percent). Let us also assume that there is a 90% chance that it will fall by 80%.
As a result, the expected return is: (0.10 x 2950 = 295 percent) + (0.9 x -.80 = -72%). This equates to 223 percent (i.e., 295-72 percent). In other words, the expected return is a 223 percent gain with only a 10% chance that BTT will be valued at 50% of ETH. Despite the fact that they both have 100 million users, this is the case.
Here’s another way to put it. Purchase $1,000 in BTT to receive 134,589.5 BTTs. In a few years, those BTTs will have a 323 percent higher expected value (i.e. 1+2.23), or $3,244 (i.e., 3.23 x 0.07463). That is the expected return assuming a 10% chance that BTT will raise to 50% of ETH.
After all, if it reached 50% of ETH, the $1,000 asset would be valuable 30.5 times just as, or $30,500. If that took three years, the average annual gain would be 312 percent per year compounded.
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