When the first cryptocurrency – the Bitcoin, came into existence, many people doubted that it would lead to such interest from investors from all over the globe. The traditional banks, hedge funds, and investors disregarded cryptocurrencies as they claimed they were low-potential assets that will not last for long. And quite frankly, in 2009, almost everyone bar some visionary leaders thought the same. We all know what happened afterwards.
What are cryptocurrencies
Cryptocurrencies are digital assets that can be exchanged for traditional currency. Due to their decentralized nature, they are not subject to the oversight of any central authority. They generate repeatable payments with low transaction fees and incredible access to new technologies. Because of their blockchain background, cryptocurrency transfers can happen from any point in the world where people can access the Internet.
What makes cryptocurrencies a good investment option
Cryptocurrencies are used mainly as a payment method, but this is not their only application. They can be utilized for smart contracts, international transfers, and many more things. CBInsights stated in their article that 58 industries could be disrupted by blockchain technology.
What does that mean for the cryptocurrency market
Investors are looking for opportunities to make more money. By updating their codebase, cryptocurrency projects become more beneficial for the general user. This naturally leads to increased interest in the crypto coin, and the price goes up. The trend for the upcoming years is for all significant cryptocurrencies to reach new heights and become more stable over time.
We don’t have to forget that the cryptocurrency market is still in its infancy. However, as the market matures and more people become aware of the potential it offers, we expect to see a significant rise in crypto prices. This means now might be the right time to buy cryptocurrency if you’re looking for an opportunity for a profitable investment.
What is the future of cryptocurrencies
It is pretty interesting to track the progress of cryptocurrencies so far. They have been consistently improving their algorithm in order to stay relevant. However, the crypto market has become more and more demanding – both developers and investors are trying to make cryptos a viable option that each investor should have in their portfolio. It seems like the crypto market will become more regulated as time goes by, and many new cryptocurrencies are either gold or USD-pegged in an attempt to avoid volatility.
The crypto All-Star was expected to fade away after it peaked in 2017 and then decreased in price. However, in April 2021, it reached $64,000, which silenced the critics. And although the transaction cost became too unbearable to handle (compared to other cryptocurrencies) and mining is no longer profitable, Bitcoin is slowly but surely turning into an asset rather than a currency. Because it will no longer be mined at high temp, the price might soar up to $66,000 by the end of 2021.
Ethereum is the biggest altcoin on the market, and for a reason. According to Statista, from September 2020 to September 2021, the cryptocurrency value has increased tenfold. Ethereum is known for its smart contracts, but the blockchain technology behind the project enables many functionalities. You can create healthcare apps, logistics apps, financial apps, and many more using Ether. Some analysts predict it to overtake Bitcoin from the leading position in market capitalization soon.
Quite often, we see people who mock others and eventually become just like them. And many times, it’s for the worse. Not in Dogecoin’s case. Jackson Palmer launched the cryptocurrency to make fun of all the hype around blockchain and the people who followed the trend. But when Billy Markus offered him a collaboration, then we could see what happened – a meme coin that actually turned out to be quite a success. Not without the help of Tesla’s CEO Elon Musk, Dogecoin has become popular. The meme coin had a market cap of under $600m during the last day of 2020. Nowadays, it’s more than $33.5bn and is about to rise. This is the perfect time to buy Dogecoin, as it is still under $0.26 but has shown promise that $0.60-$0.70 is a possible value in the near future.
Even since the first digital currency (the Bitcoin) was launched, the world has been divided – the majority of people didn’t believe that it would have an impact and would disappear soon. Still, Bitcoin created a unique environment for some idealists that gave a chance for many crypto projects to go live. We see Ethereum going strong and even Ripple rivaling SWIFT. And on the sideline, Dogecoin is paving its way to success. Yes, the cryptocurrency created to bring smiles to the face now brings value to its investors. The crypto future seems not only secured – it looks bright.