When people hear the word cryptocurrency immediately a question pops up in their minds, what is cryptocurrency? In simple words, cryptocurrency is a standard devolved digital money that was made to be used over the internet. As it is a digital currency, hence it is also commonly referred to as virtual currency.
Today cryptocurrency has various types and functions but the very first cryptocurrency launched was Bitcoin. Bitcoin got famous all around the globe like fire in the jungle, created Bitcoin’s carbon footprint, and today a huge population of people know cryptocurrency by the name of Bitcoin.
Rapid Evolving Of Crypto
The crypto industry that once focused exclusively on Bitcoin is now growing speedily. Cryptocurrency has become a global spectacle in the last few years. Though, there is still a lot to be learned about this rapidly rising digital technology. Various concerns and suspicions are churning around the technology and its ability to mess up usual financial systems.
Specifically, the last 18 months have transformed cryptocurrency tremendously. The crypto growth has never been this speedy. Many consumers have stepped into crypto trading for the first time amid a pandemic.
The routine customers, many of them not even sure about what blockchain exactly is, hopped in the ongoing trend of the viral trail of Reddit threads, where talk about stocks and “diamond hands” attracted thousands of people to communally blow up the price of these digital assets to the moon. All this rush led to a whole new world of “meme stocks”, breathing new life back into evading companies like GameStop shuddering the market to its depth.
Rise of Cryptocurrency In The Coming Years
According to the estimation of analysts, the global cryptocurrency market is predicted to rise more than triple by the year 2030.
Cryptocurrency, once only known among a comparatively peripheral community of anti-establishment investors has today become a household name in a very short period. By 2030, this crypto industry will be triple and will be beating a valuation of approximately $5 billion. Whether they invest in crypto or not, the investors, stockholders, businessmen, and brands are unable to ignore the escalating tide of crypto for long.
Digital Asset Going Mainstream
In 2021, the venture capital funds have transferred about $30 billion into cryptocurrency which is more than in all former years altogether for a little more than decade-old digital technology.
Previously, $8 billion was the highest amount that was transferred in the year 2018. Furthermore, in the year Bitcoin was launched more than 1,300% breakthrough was gained as per the transaction data assembled by PitchBook Data Inc. the future of cryptocurrency is still very much in question as people are still worrying about risks. Protagonists and promoters see never-ending potential in cryptocurrency while what criticizers see is nothing but risk and threat.
Investment in Cryptocurrencies
Over the last ten years, the crypto industry has only seen a rise in ad growth. Cryptocurrency initiated its cycle of success by releasing Bitcoin and today there are several types of cryptocurrencies winning the world. Below is the description of a few best cryptocurrencies to invest in now.
Bitcoin is a must-own for every cryptocurrency investor. It is till now the leading cryptocurrency by market cap. This coin was launched almost 13 years ago and today it has a market cap of approximately $900 billion. It is liable for almost 40% of the total value of the cryptocurrency market.
Bitcoin also tops the list of being the only digital asset with a U.S. exchange-traded fund as per its movements. Being the longest and the most successful cryptocurrency, companies like Tesla Inc. and MicroStrategy Inc. have bitcoin on their balance sheets. Among all cryptocurrencies, Bitcoin is the most developed coin.
After Bitcoin, people are rushing to invest in Ethereum. ETH has the second biggest market cap after Bitcoin. This cryptocurrency is responsible for nearly 20% of the total market. Ethereum is attracting people to itself because it has actual functions other than being a store value. The ETH network is also considered the most heavily used blockchain globally. ETH is predicted to become far more energy-efficient than BTC.
Solana, commonly known as SOL, has resolved some of the issues with Ethereum. The biggest issue ETH was facing was heavy transaction charges. The “gas fees” make the unassertive ETH transactions financially inconvenient but SOL’s fees are tiny as compared to ETH. Solana was launched in 2020 with a small but escalating share of the market. At the beginning of 2021, the coin value of Solana was $1.51 which later escalated to more than $160.
Cryptocurrency has gone beyond our imagination and has succeeded to date. Today through cryptocurrency people have got digitized financial services and a lot more. It is impossible to predict what the results of the cryptocurrency market will be in 2022 and beyond but if the issues rising due to cryptocurrency finds a solution, the crypto industry will take shape.