Do I need to buy GAS or NEO?
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The GAS is the second token on the NEO blockchain. This token is used to pay for transactions made on the NEO blockchain. To date, holders of the NEO cryptocurrency on a NEON wallet receive free GAS.
Good to know: the GAS and the NEO are closely correlated. An increase in NEOs generates an increase in GAS; conversely, a decrease in NEOs generates a decrease in GAS. Until now, the price of the GAS has been between 1/3 and 1/2 of the price ofthe NEO, but the GAS could rise well above the NEO price once all GAS tokens are distributed.
Good to know: GAS received free of charge on NEO holdings can be compared to a dividend. In practice, 100 NEOs generate approximately 10 GAS per year; theoretically, 100 NEOs should generate nearly 17 GAS per year.
All projects opened on the NEO blockchain will use GAS as a "means of payment"; it is then legitimate to ask whether it is better to buy NEO or GAS today. You should also be aware that some cryptocurrency analysts forecast that the GAS will be worth two to three times the NEO one day.
On the one hand you say to yourself: "Why buy GAS when holding NEOs lets me earn GAS for free?"
Certainly... And 100 NEOs will generate about 1 GAS per month for a long time to come. Until the day when all the GAS tokens have been distributed. And that is not about to happen tomorrow.
So regardless of the price of the GAS, owning NEOs will continue to generate the same number of GAS. If the GAS is currently at $22, holding 100 NEO earns you $22 per month. If the GAS were to rise to $100, holding 100 NEOs would still earn 1 GAS per month, i.e. $100.
It is this argument that is gradually attracting cryptotraders to invest in GAS rather than NEO. Bearing in mind that the GAS could one day be worth 2 to 3 times the NEO, this means (compared to the current NEO price) that the GAS would then be quoted at $140 to $210. Currently at $22, this is a potential increase of 636 to 954%. And that's not counting the increase in NEO! Let us imagine that the NEO increases to its highest, just below $200; the GAS could therefore, one day be at $400 to $600, which is a potential increase of 1,818 to 2,727%.
I think you always need NEO (by default) to be able to accumulate free GAS. If GAS were to take off and you don’t have a large volume, it would only be a "lack of income". On the other hand, it is (in my opinion) very attractive to gamble on the price gap between NEO and GAS. By this I mean that when the GAS is quoted at 1/3 of the price of the NEO (as at present), it seems attractive to sell some NEO for GAS while waiting for the NEO/GAS ratio to decrease to 1/2.
It is clearer with numbers:
The NEO is currently at $74 and the GAS is currently at $23, so the NEO/GAS ratio is currently 1/3.
Regardless of whether the NEO goes up or down, it seems attractive to me at the moment to convert NEOs into GAS in the short term.
Imagine that NEO stagnates at $74, we will then wait until GAS has risen to $37 (ratio 1/2) to convert them back into NEO.
For your information: some cryptocurrency trading platforms directly quote the GAS/NEO pair. This is very practical for quickly switching from GAS to NEO or from NEO to GAS. Don't forget (for security) that you can return the GAS or NEO to NEON WALLET after the operation!
What I do personally:
1/ I work with the NEO/GAS ratio on 1/3 of my global NEO position.
2/ I always keep 2/3 of my overall NEO position compared to GAS.
3/ I do not touch the GAS generated free of charge by holding NEO. I keep them as a pseudo "dividend" so the value still fluctuates in time. They're free, I keep them! But if GAS ever reaches $200, maybe I'll change my opinion. ;)
Good to know: the GAS and the NEO are closely correlated. An increase in NEOs generates an increase in GAS; conversely, a decrease in NEOs generates a decrease in GAS. Until now, the price of the GAS has been between 1/3 and 1/2 of the price ofthe NEO, but the GAS could rise well above the NEO price once all GAS tokens are distributed.
Good to know: GAS received free of charge on NEO holdings can be compared to a dividend. In practice, 100 NEOs generate approximately 10 GAS per year; theoretically, 100 NEOs should generate nearly 17 GAS per year.
All projects opened on the NEO blockchain will use GAS as a "means of payment"; it is then legitimate to ask whether it is better to buy NEO or GAS today. You should also be aware that some cryptocurrency analysts forecast that the GAS will be worth two to three times the NEO one day.
NEO generates GAS
On the one hand you say to yourself: "Why buy GAS when holding NEOs lets me earn GAS for free?"
Certainly... And 100 NEOs will generate about 1 GAS per month for a long time to come. Until the day when all the GAS tokens have been distributed. And that is not about to happen tomorrow.
So regardless of the price of the GAS, owning NEOs will continue to generate the same number of GAS. If the GAS is currently at $22, holding 100 NEO earns you $22 per month. If the GAS were to rise to $100, holding 100 NEOs would still earn 1 GAS per month, i.e. $100.
The upside potential of GAS
It is this argument that is gradually attracting cryptotraders to invest in GAS rather than NEO. Bearing in mind that the GAS could one day be worth 2 to 3 times the NEO, this means (compared to the current NEO price) that the GAS would then be quoted at $140 to $210. Currently at $22, this is a potential increase of 636 to 954%. And that's not counting the increase in NEO! Let us imagine that the NEO increases to its highest, just below $200; the GAS could therefore, one day be at $400 to $600, which is a potential increase of 1,818 to 2,727%.
GAS or NEO in my portfolio: my opinion
I think you always need NEO (by default) to be able to accumulate free GAS. If GAS were to take off and you don’t have a large volume, it would only be a "lack of income". On the other hand, it is (in my opinion) very attractive to gamble on the price gap between NEO and GAS. By this I mean that when the GAS is quoted at 1/3 of the price of the NEO (as at present), it seems attractive to sell some NEO for GAS while waiting for the NEO/GAS ratio to decrease to 1/2.
It is clearer with numbers:
The NEO is currently at $74 and the GAS is currently at $23, so the NEO/GAS ratio is currently 1/3.
Regardless of whether the NEO goes up or down, it seems attractive to me at the moment to convert NEOs into GAS in the short term.
Imagine that NEO stagnates at $74, we will then wait until GAS has risen to $37 (ratio 1/2) to convert them back into NEO.
For your information: some cryptocurrency trading platforms directly quote the GAS/NEO pair. This is very practical for quickly switching from GAS to NEO or from NEO to GAS. Don't forget (for security) that you can return the GAS or NEO to NEON WALLET after the operation!
What I do personally:
1/ I work with the NEO/GAS ratio on 1/3 of my global NEO position.
2/ I always keep 2/3 of my overall NEO position compared to GAS.
3/ I do not touch the GAS generated free of charge by holding NEO. I keep them as a pseudo "dividend" so the value still fluctuates in time. They're free, I keep them! But if GAS ever reaches $200, maybe I'll change my opinion. ;)
