Cryptocurrencies are a new-age invention. The first and by far the most famous is bitcoin, but there are others – Ethereum, Ripple, Litecoin, Neo, Dogecoin, and many others. They are very difficult to understand, difficult to explain, and most do not understand how they work.
Cryptocurrencies are hailed around the world as the future of finance, but the price volatility surrounding these digital offerings still makes them risky investments. But the more risky the investments, the higher their profitability if successful.
Cryptocurrencies are a new form of money that is not tied to central banks but to the online community, and blockchain-based techniques will affect all sections of society. To better understand what the future holds for cryptocurrencies, it is important to understand their beginnings as well.
Cryptocurrencies are unique digital coins that are impossible to copy even arbitrarily produce. There is a certain value of every cryptocurrency in the world, and it is impossible to increase it. Cryptocurrencies are a completely new concept that changes not only the way we pay but also the way we experience money. As with any big innovation, it is necessary to first change the consciousness of users. Their status as money has not been firmly established, and the status of legality has not yet been defined and varies from country to country. There is no parent central institution, government, agency, bank, or corporation that issues or maintains accounts for these currencies.
It is almost certain that electronic payments and digital money will be dominant, in the very near future. Both the World Bank and the World Economic Forum believe that the modern economy is unsustainable for many reasons, and one of them is the excessive amount of various currencies in the world, which together make an extremely complicated system for the further development of the world trade. However, it is believed that only certain currencies will survive, and these are some of those that predict a bright future.
Bitcoin
This is certainly the most valuable and well-known cryptocurrency. Since its inception in 2008, it has recorded an almost constant increase in value. Of course, there is also an occasional oscillation in value, but he is still on the throne. Let’s just remember that its value in 2009 was almost 0 ($ 0.03) and that many were suspicious at the time that it would reach the value of the US dollar. However, very soon after it achieved this, this currency soared into the skies and now its value is over $ 46,000. You can visit this site to learn more about trading.
Ethereum
In the shadow of Bitcoin, as the most widespread and most popular cryptocurrency, there are a number of other cryptocurrencies that are looking for their place under the sun. One of them is definitely Ethereum. Although its current value is significantly lower than Bitcoin ($ 3,000), it has long been second on the list of most valuable cryptocurrencies. The price of Ethereum is growing rapidly, and a jump of 350% was recorded! A year after the launch, in 2016, hackers took advantage of the network’s security vulnerabilities and stole Ethereum tokens worth about $ 50 million. The mentioned event led to the loss of trust in Ethereum as well as to the decline of its value.
Ripple
While we can’t say that the value of Ripple has ever been much higher than $ 1, for some reason it’s available in the market, and it’s very interesting to investors. It is believed that its value will grow in the future, given that it managed to increase its value by 52% in 24 hours, which took Bitcoin a month and Ethereum a week. This cryptocurrency is considered to be a rival to Bitcoin. Ripple does not depend on a single company to ensure and edit a transaction without data. There is also a significant difference in the time of “sitting” on the bill. Bitcoin needs hours and Ripple seconds, but on the other hand, there is no mining.
Libra
Unlike other cryptocurrencies such as Bitcoin, Libra has great support from numerous venture capital funds, but also some of the most famous names in the business world such as Mastercard, PayPal, eBay, Uber, Spotify, Vodafone. Currently, this currency is supported by about 20 companies, and it is believed that their number will only grow in the future. This currency was recently renamed Diem to make it easier to get regulatory approval. Diem should be a virtual currency pegged to the dollar, which would mean that the currency is more stable than some other cryptocurrencies, and this would also make it easier to get approval from different regulators all over the world.
Litecoin
This is a currency that is based on the same idea as Bitcoin itself, and it is also the currency that holds its largest market share. From the very beginning of this year, it has recorded great growth. As just mentioned, Litecoin has risen sharply in recent years. This positively affects the price predictions for this crypto, but to make sure of that, we have to be patient until time shows it.
Final thoughts
Cryptocurrencies are digital coins that are impossible to copy or arbitrarily produce. They function as electronic records of certain values stored in electronic banknotes on websites that provide this type of service. Cryptocurrencies are with the development of information technologies they have become an increasingly important factor in the economy and are growing development began to worry central banks that had to respond to their growth.
As we can see, no one can say for sure that a currency has a bright future, but we can still rely on the estimates and predictions of those who are experienced in this field. In any case, every investor should do what is up to them, which is to take care of the security of their cryptocurrencies by providing a secure wallet and finding a secure trading platform.
In this business, it is important to be patient because earnings rarely come overnight, although this is also possible given that the value of cryptocurrencies sometimes changes several times during the day.
