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Is Pirate Chain a Good Investment in 2021?

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Are you wondering if Pirate Chain (ARRR) is a good investment in 2021? Despite the funny name, Pirate Chain has a lot to offer. The project has raised a ton of money, and has some cool features. Despite a lack of differentiation from other privacy coins, Pirate Chain has serious potential. Use the quick jump to read up on different aspects of the coin.

Pirate Chain has had a great run over the past year, but still lags behind other cryptos in terms of returns on a risk-adjusted basis

TL;DR

Pirate Chain has stumbled over 40% in the second half of 2021. This means we could have a strong buying opportunity right now. What makes an investment “good” differs by investor. There’s risk, time horizon, project fundamentals, and (with memecoins and shitcoins) non-tangible factors like familiarity and laughs. A project could have completely whacked fundamentals but if it’s something you strongly believe in, it’s a good investment in your eyes. Pirate Chain could fall into this category for some. Overall, Pirate Chain is a promising project. But there are a few things that would make it an unattractive investment for many. If you’re looking to diversify into some smaller caps, Pirate Chain might be a great thing to make up a small fraction of your crypto portfolio. This article isn’t financial advice, and I’m not a financial adviser.

The problem to solve

You could argue that we live in the golden age of anti-privacy. ‘Free’ services provided by the likes of Facebook, Google, and Apple are actually transactional. Those firms have loads of data on you and I so they can sell us extremely targeted Hyundai ads. Someday we’ll look back on this time and shake our heads at how absurd it was how much power these companies have. Cryptocurrency is part of the solution to this problem of ultra-centralization. 

The ethos behind Pirate Chain 

Bitcoin’s original purpose was to introduce a solution to this ultra-centralization. Bitcoin has done this. Bitcoin is also trustless- meaning you don’t need any verification to have a Bitcoin wallet.  Come crypto armageddon, the Bitcoin network cannot be hacked, even if several nation-states banded together to try and do it. It’s too economically expensive. This is because Bitcoin uses a Proof-of-Work (PoW) algorithm. The developers at Pirate Chain love this, so Pirate Chain works on delayed proof-of-work (dPoW), a similar but more energy efficient consensus process using the Komodo (KMD) blockchain. A lot of the original libertarian spirit of early Bitcoiners and the CypherPunks of the 1990s lives within the Pirate Chain project.

Why blockchain anonymity is important

Wallet addresses do not have names or any personal information attached to them, granted they are not on an exchange like Coinbase. But, all transactions on the blockchain are  viewable to the public on sites like Etherscan. This means we know which wallets are the biggest, even though we don’t know who owns them. What if you paid for something in crypto in a dangerous country, and the vendors saw how much money was in your account? It could be bad news. You could be coerced to give up your funds by violent or non-violent means. Enter Pirate Chain. Pirate Chain transactions end up in shielded wallet addresses that aren’t traceable or viewable by others.

Pirate Chain features and roadmap 

Pirate Chain uses the Komodo (KMD) blockchain’s assets, similar to the way Polkadot deploys parachains. Pirate Chain’s delayed proof-of-work consensus is actually just that of Komodo’s. Pirate Chain has developed PiratePay, a web-based decentralized way to accept ARRR payments. There are instructions on how to set up the wallet on their website, although the setup process is a bit lengthy. Pirate Chain also offers the Pirate OS, an operating system that can provide an easy-to-use added layer of security around ARRR wallets. Pirate Chain currently does not have any partnerships, but keep in mind that privacy coins are not smart contract or supply chain cryptos like Cardano or VeChain. The Pirate OS is downloadable on Pirate Chain’s website.

Why Pirate Chain is currently undervalued

Monero, another privacy crypto that offers the same solution as Pirate Chain, has a market cap of $4.4 billion, nearly ten times that of Pirate Chain.  Pirate Chain offers the same advantage as Monero, but has a market cap of less than $500 million. There’s a lot more room to grow for Pirate Chain. Because Pirate Chain is a lesser-known top-200 crypto project, it hasn’t yet seen the investment other cryptos have. Other smart privacy cryptocurrencies like Monero, Decred, and ZCash have seen explosions in value. I have no reason to believe that with Pirate Chain it will be any different- its day is coming.

Why Pirate Chain could face headwinds

It’s a given that the IRS and other institutions don’t like privacy cryptos. They see projects like this one as highways for tax evasion and vice. While it’s true that the crypto space is still full of scammers, the vast majority of crypto HODLers are honest users and investors. After all, US dollars are the currency of choice for drug dealers and other criminals worldwide. How come dollars aren’t banned? Their utility outweighs the bad stuff. It’s the same with privacy cryptos. Last year, the IRS offered $650,000 to anyone who could hack Monero’s protocol. For this negative clout associated with privacy cryptos, it’s likely that we won’t see Pirate Chain listed on any major exchanges like Coinbase or Binance anytime soon. If a coin cannot be widely available for others to adopt or invest, its price movement could be sluggish compared to the rest of the crypto market. For this reason and others, the last few bull runs have seen privacy cryptos underperform some of their counterparts. 

Is Pirate Chain a good investment?

Even within the spectrum of cryptocurrency, Pirate Chain is one of the more risky projects. It’s always good to think about your investments on a risk-adjusted basis. Are the returns going to be worth the risk? Although Pirate Chain does have more room to grow due to its smaller market capitalization, the fact that the project is so small might mean it could fare poorly in the next crypto bear market. This pirate ship is tiny, and a large wave could come and knock it down. In terms of its economic value proposition, there will be real need for privacy coins in the future. The problem is that there are many other privacy coins, and I don’t see too much differentiation between Pirate Chain and the likes of Monero or ZCash. But if the need for privacy cryptos eclipses available supply, we could see some huge gains for this coin.

Where to buy Pirate Chain 

I’m celebrating a bit right now because Pirate Chain (ARRR) can currently be traded on KuCoin. KuCoin doesn’t require Know-Your-Customer (KYC), a lengthy and painful verification process to get up and trading. I wrote a piece on how to quickly fund your KuCoin account. You’ll need to fund your account with USDT or Bitcoin, as these are the two trading pairs with ARRR. Pirate Chain is also trading on Gate.io. As always, stay on the righteous path and think long and hard before making any transaction!

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