As we prepare for 2022, here is a list of 5 currencies you should invest in.
- Ethereum – Show star
The Ethereum blockchain prides itself on being “the world’s programmable blockchain,” capable of hosting multiple applications. It uses cryptocurrency to mean more than money, applying it to the decentralization and disorganization of various sectors. While it followed the path of Bitcoin, it distinguished itself as the source of most financial services, games, and applications in the crypto space. You can maintain a secure network due to the decentralized nature of the blockchain.
- Bitcoin: must reach more than 100
Since its launch in 2009, Bitcoin has peaked more than five times, peaking at $ 69,045 on November 10, 2021; about $ 31,000 less than $ 100k. Bitcoin (BTC) is expected to hit $ 100K by 2022, but that milestone will depend on many factors. Bitcoin is currently trading at $ 50,186, which means that if you buy it now, there is a chance to do X2. One of the factors that drives the price of Bitcoin is market demand, just like other assets. This implies that the higher the demand for Bitcoin, the higher the price. And with a limited supply, the closer Bitcoin gets to its limit, the higher its price. In addition to market demand, the marginal cost of production can also affect its price. Every year, Bitcoin experiences an average growth of 200%. This led governments and institutions to understand everything about cryptocurrency and blockchain technology. However, this has brought more regulations that can make the price go up or down. With the current state of the world economy, Bitcoin presented itself as the savior. Institutions, investors, and governments now store value using Bitcoin. Even if the world economy stabilizes and everything returns to normal, confidence in Bitcoin will remain. With the current increase in the adoption of Bitcoin for payment and storage of value, the price will increase in the long term as demand increases. A good example is El Salvador, which used Bitcoin as a store of value.
- BNB: the continued growth of the BSC
Binance Currency (BNB) is the native token of the Binance trading platform. Fuel the Binance ecosystem. It was launched in 2017 and issued during an Initial Coin Offering (ICO) between late June and early July 2017 for 11 cents. Fifty percent of the total supply was sold at the ICO, 10% was given to angel investors, and the remaining 40% was allocated to the founding team. There is a limited supply of 200 million BNB in circulation. This continually depreciates due to timely burn events. During currency burning, Binance uses 20% of its income to buy back and burn the BNB. This is expected to continue until 50% of the quantity in circulation is destroyed. This limits supply, creates a shortage, and drives up the price. With the continued growth of the BSC (Binance Smart Chain), the demand and adoption of BNB will increase and so will its price. However, it should be noted that BNB is not inflationary. It currently ranks third, behind Ethereum and Bitcoin, with a market capitalization of $ 91.3 billion. It is trading at $ 543.57 on Binance, gate.io, Coinsbit, and CoinTiger.
- Solana: ecosystem growth, main challenge for Ethereum in the long term
Solana is an open source computer network with the aim of increasing the speed of transactions while ensuring decentralization. It was developed in 2017 by Anatoly Yakovenko. The Solana network can validate more than 50,000 transactions per second for less than a penny per transaction. It employs the gamble-proof mining model to validate transactions, create new coins, and track the amount in circulation. This model allows holders to put their tokens and become validators. As validators, they earn rewards and share transaction fees.
- Earth – fan favorites, strong use cases, finally gaining widespread recognition
Simply put, Terra is a blockchain where stable coins can be created. It is an open source Layer 1 protocol that enables the creation of stablecoins pegged to physical or asset currencies. These stablecoins can be traded, spent, saved, and exchanged on the platform.
Terra blockchain is already gaining traction around the world as a DeFi service provider and stablecoin payment platform. However, it is still evolving and expanding. The Terra platform uses LUNA as its native token and to keep stablecoins stable. LUNA’s total supply is below 1 billion