Theta token vs Theta fuel

Theta Token vs Theta Fuel: Which One is a Better Investment?

With the cryptocurrency market booming once again after a long time, you must be contemplating where to put your capital to make some profit. It has become quite difficult to course through the market for beginners due to heavy competition, emerging projects, new terminology, etc.

Today I will discuss Theta token vs Theta fuel in terms of use-cases and investments and tell you which one I think is the better investment option.

Historically speaking, Theta Token has been the best investment. In addition, you can stake Theta Token the receive Theta Fuel to increase your returns further. Theta Fuel has also performed well in the past, but not as good as Theta Token.

Let’s get into the details about what the difference between them is and how they have performed historically:

Theta Token and Theta Fuel

Theta Token (THETA) is what crypto enthusiasts know as a governance token on the Theta network. It is a vital aspect of the entire system run by Theta protocol.

I think of governance tokens as shares due to the similarities of the concept – You get a say in what changes should be made to the network/business.

In addition, you can use theta token to stake. Its maximum supply is fixed at 1 billion, making it more scarce and valuable.

Theta fuel (TFUEL) is the second type of token available on the Theta network, and exceeds the Theta token in terms of usability.

Theta fuel is paid to participants for joining the network and sharing their video streaming resources.

Theta fuel backs many other functions like deployment of smart contracts, incentives for relayers for sharing video streams. 

TFUEL was launched as a native token on the Theta blockchain without capped supply. This means that more TFUEL can/will be created in the future.

Reasons Why Theta Token is Worth Investing in

  • Theta token is targeting the video streaming industry that is worth several billion dollars at the moment. Providers of video streaming services have kept things centralized and geographically limited but Theta aims to disrupt this model with blockchain technology. 
  • Theta aims to incentivize a global network of computers (users) for offering their spare bandwidth and computing resources. Theta’s peer-to-peer network will have more bandwidth available as people keep joining its pool of users to share resources for streaming videos.  
  • Theta has the potential to challenge video streaming giants that helped me survive incessant repetitive lockdown for a year now such as Netflix, Amazon Prime Videos, Hulu, etc. Theta is also proposing to lower the cost of quality video streaming by fixing the conventional system. 
  • Theta boasts a capable team behind it which includes Steve Chen, co-founder of YouTube, Rakuten Viki and CJ Hello, senior executives from Verizon, and Justin Kana, Twitch co-founder. Theta network was founded by Mitch Liu and Jieyi Long who have experience in mobile gaming and VR live streaming technologies. 
  • In 2017, Theta network had a private token sale that led around $20 million and sold 30% of Theta token. Many corporate giants have sided with this project and got on board as strategic investors after 2017. Some of them are Samsung NEXT, Sony Innovation Fund, DCM, Sierra Ventures, Digital Media Investments, and so on.

Reasons Why Theta Fuel is Worth Investing in

I’ve written a full article about how great TFUEL is as an investment. You should really check it out.

Anyways, here’s the skinny of it:

  • Also known as the gas token (such as Ethereum Gas), Theta fuel is a highly liquid token that regulates each of the microtransactions occurring all over the Theta network. 
  • The role of supporting Theta protocol’s internal economy is played by Theta fuel and without its existence, the entire ecosystem would collapse.   
  • Theta network would be able to decentralize video streaming by making it affordable, fair, and unrestricted with the help of network participants. With TFUEL as a reward, I believe there is a possibility that more users would choose to join the Theta network.  
  • Despite being related to the same decentralized ecosystem, both TFUEL and THETA serve very different purposes as I mentioned earlier. For the same reason, the maximum supply and value of both tokens are also different.   
  • While Theta token is limited to 1 billion tokens, Theta fuel’s supply increases every year for staking rewards. There are currently 5.30 billion Theta fuel tokens in the market.

Historical Performance Of Theta Token And Theta Fuel

In the past, we have seen the market favoring Theta token more than Theta fuel to a point where THETA outdid Dogecoin last year. 

Theta token prices surged more than 17,000% from January 2020 to March 2021.

Is theta better than theta fuel?

At the same time, Theta fuel increased by about 15,000% (which is still really good):

Is theta fuel a good investment

Now, good performance in the past does not guarantee future success, but history often rhymes. The best performers in the long run, often stay on top.

From the images above, we can conclude with this:

Although both have been great investments historically speaking, Theta Token has performed best in the past. In other words, Theta Token has been a better investment than Theta Fuel. Even though this does not guarantee that it will continue to be the better investment option, it indicates it.

Suggested reading:

Is Solana A Good Investment?

Crypto Investing Strategy For Beginners: Three Easy to Follow Strategies

BTW, I Made a FREE Guide To Increase Your ROI:

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What are your thoughts?

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