Long
GRS (Groestlcoin) | Fundamentals, price model, etc
Launched on 22 March 2014 with a focus on technological advancement, Groestlcoin (GRS) is SEGWIT, TAPROOT and Lightning Network ready.
Groestlcoin has been in constant active development, providing development updates and enhancements every 3 months for 8 years. It is the first coin that activated SEGWIT (January 2017) and TAPROOT (The last update was released on March 8, 2022)
Groestlcoin's final supply is limited to 115 million coins from which around 80 million coins currently in circulation and only 15 million coins left. If you're familiar with the concept of scarcity, you know why it's important. Once something becomes scarce enough, it becomes precious and can be used as money.
The market cap of Groestlcoin is around $57 million, while the capitalization of the entire crypto market exceeds $2 trillion. Therefore, it can grow significantly by attracting a small portion of this capital.
Technical Analysis
Take a look at the chart. Right after Bitcoin's third halving (July 2016), we have a falling wedge pattern on the chart. This consolidation pattern was actually an accumulation zone. As you can see, the 2017 Bull Run started right after the pattern completed.
Each complete bitcoin cycle (Duration between two halving events) takes about 4 years. Now, about 4 years after the last bitcoin halving, we are again seeing a consolidation pattern formed on the chart. Now the triangle pattern is completed and the price is about to break out. So, this could be the beginning of a bull run.
<< However, always remember that past results are no guarantee of future performance >>
Price Model
Well, maybe a bull run is coming, but where can the targets be? I use a price model to determine the range of price movements.
Bitcoin is the leader and in the crypto world everything follows it.
I used linear regression to determine the relationship between the GRS price data and Bitcoin's stock-to-flow ratio.
I have plotted the model price (black) over time on the chart. To estimate the range of price movements, I used a set of trendlines plotted one or two standard deviations (positively and negatively) away from the model.
For more information on price models, see my article titled Ripple (XRP) Model Price via the link below the post.
Terms
What is segwit?
Segwit stands for "segregated witness" and is a technique that reduces transaction fees.
What is the taproot?
Taproot is a modified advanced form of MAST that allows participants to aggregate their signatures and spend from a multi-sig just like a normal transaction together.
What is lightning network?
The Lightning Network is a second layer added to the blockchain that enables off-chain transactions, i.e. transactions between parties not part of the blockchain network.
What is Bitcoin Stock-to-flow?
The 'Stock-to-flow' is a number that shows how many years, at the current production rate, are required to achieve the current stock.
Related publications
Disclaimer
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