BitTorrent (CCC:BTT-USD) is the utility token for the peer-to-peer (P2P) file-sharing software of the same name. In 2019, the Singapore-based BitTorrent Foundation launched BTT on Tron blockchain, an operating system for creating decentralized applications and sharing media content.
As a file-sharing platform, BitTorrent was founded in 2004. File sharing is the primary service to download movies, music or games using torrent. There is no limit to file capacity. BitTorrent offers a torrent client software for various operating systems. It has recently surpassed 2 billion installations and currently has around 100 million active users. According to data provided by Similarweb, between January and March 2021, around 30% of total visits to its website came from India, the U.S., Brazil and Russia.
Cryptocurrency investors regard the recent Coinbase Global (NASDAQ:COIN) initial public offering (IPO) as the beginning of a “blockchain boom,” comparable to the internet boom of the late 1990s. In fact, year-to-date (YTD), BitTorrent is up over 1,960%. Put another way, $1,000 invested in BTT in early January would now be worth around $20,000. BitTorrent’s price is currently hovering around $0.0065 and the market capitalization stands at $4.3 billion. By comparison, here’s how several other crypto favorites have fared so far in 2021:
- Bitcoin (CCC:BTC-USD): up ~85% YTD, market cap is ~$1 trillion;
- Cardano (CCC:ADA-USD): up ~640% YTD, market cap is ~$41.5 billion;
- Dogecoin (CCC:DOGE-USD): up ~9,407% YTD, market cap is ~$71.1 billion;
- Ethereum (CCC:ETH-USD): up ~356% YTD, market cap is ~$385.6 billion;
- Ripple (CCC:XRP-USD): up ~488% YTD, market cap is ~$63.4 billion.
These returns show that BitTorrent has been a favorite among crypto bulls in 2021. Let’s now take a closer look at what potential investors could expect from BTT in the months ahead.
BitTorrent Is a P2P Protocol
The cryptocurrency market has been seeing a lot of green in recent months. Therefore, many individuals want to join the “cryptorush,” without doing much due diligence on the altcoins or tokens they are interested in. So let’s take a few minutes to understand what makes the BitTorrent token unique.
Research led by J.A. Pouwelse of the Department of Computer Science, Delft University of Technology, the Netherlands, cites,
“Of the many P2P file-sharing prototypes in existence, BitTorrent is one of the few that has managed to attract millions of users. BitTorrent relies on other (global) components for file search, employs a moderator system to ensure the integrity of file data, and uses a bartering technique for downloading in order to prevent users from freeriding.”
BitTorrent was acquired by the Tron Foundation in July 2018. Then, the utility token BTT was launched to reward users for their bandwidth. The platform highlights,
“… downloaders will have the option of providing tokens to uploaders in exchange for faster download speed. By introducing an incentive of earning BTT tokens, uploaders have a reason to seed files longer, and to dedicate more of their bandwidth and storage to other torrent clients in the network. BTT, which serves as a crypto torrent token in BitTorrent Speed, is responsible for powering a healthier BitTorrent protocol.”
The supply of BTT is limited to 990 billion tokens. 19% of all tokens are attributable to the BitTorrent team and its foundation, while the Tron Foundation gets 20%. More coins will likely be unlocked in 2028.
The Bottom Line on BTT
BitTorrent is a promising altcoin, offering investors access to the crypto market. Despite high short-term volatility, BTT’s performance has remained solid in the past couple of months. Furthermore, the growing user base of the BitTorrent platform should continue to support the price of BTT. The next price target could potentially be $0.01.
Nonetheless, the general performance of the cryptocurrency market will determine the BTT price in the years ahead. Those crypto investors with risk capital might want to invest around these and expect to hold for two to three years. But the price should continue to be choppy in the short run.
Are you interested in blockchain technology but not ready to commit capital into a single cryptocurrency like BitTorrent? Then you could also consider investing in an exchange-traded fund (ETF) like the Reality Shares Nasdaq NexGen Economy ETF (NASDAQ:BLCN). The fund, which started trading in 2018, gives access to firms that develop or utilize blockchain technology. I believe the Amplify Transformational Data Sharing ETF (NYSEARCA:BLOK) and the ARK Next Generation Internet ETF (NYSEARCA:ARKW) also deserve your attention.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.
