1 cryptocurrency that even this skeptic buys

I admit it. I’ve never really been on the cryptocurrency bandwagon. While I can fully appreciate the potential of crypto’s underlying blockchain technology, simply creating an unlimited number of alternative, unregulated currencies from scratch sets the stage for disaster. Everything causes some reaction sooner or later. Often these reactions are unintended and undesirable results.

However, there are a few newcomers that have caught my eye lately. Of the two in question, I might end up taking a chance starlight (CRYPTO: XLM).

A clear objective that makes sense

Since entering the mainstream, one of my main issues with cryptocurrencies has been their limited degree of practical use. For a crypto to be a successful alternative to fiat currency, enough sellers must be willing to accept it as payment, and enough buyers must be willing to use it as payment. This is the underlying reason why so many cryptocurrencies and related stocks have struggled lately: too few participants can agree on the plethora of altcoins to commonly use. Most early ones were established without a particular use in mind.

Stellar – Stellar Lumens, to be precise – is not bothered by this philosophical flaw.

Image source: Getty Images.

Established in 2014 on its own integrated token called lumen, Stellar’s network is built from the ground up to enable large organizations to easily do profitable cross-border business. And they did. Over the past seven years, the platform has facilitated over 450 million transactions, allowing payers to make payments in their local currency and recipients to receive payments in their local currency.

Cross-border transactions can be done very cheaply in minutes, instead of days; users only need to own one lumen to complete a transaction, and transaction fees start at 0.00001 lumen. It would not be out of place to describe it as the fastest, most comprehensive and most profitable exchange in the world. The lumen token and its corresponding blockchain ensure that everything happens the right way, fairly and squarely.

The coolest part is that Stellar works with any currency, fiat and otherwise. The stablecoin USD Coinfor example, is also compatible with the Stellar network.

Stellar Lumens is in good company and in limited supply

It remains to be seen whether Stellar Lumens will end up being one of the world’s favorite cryptos – a requirement if there is to be any hope of price stability needed to make a particular digital currency a reasonably safe way to store, transmit or receive. assess. Otherwise, it continues to be little more than a speculative draw.

The Stellar platform certainly has the right support to become the platform of choice among the major global players. Tech giant International Business Machines – better known as IBM – is partnering with Stellar to offer IBM business customers cross-border payment solutions, touting network speed and low usage costs. MoneyGramLiquid Mortgage and Knabu Bank also work directly with Stellar to make cross-border transactions easier and faster.

At the very least, potential buyers can accept the fact that none of this cryptocurrency will be mined again, diluting the current float in the process. If a company wishes to connect to the Stellar network to use its impressive payment capabilities, it will have to purchase some from the open market. It’s a bullish backdrop, not to mention a good start for today’s owners.

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James Brumley has no position in any of the stocks mentioned. The Motley Fool has no position in the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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