2 Cryptos That Could Double Your Money
Cryptos exploded in value from 2020 through the beginning of 2021, with many seeing a double. Bitcoin (CCC:BTC-USD) has risen 918%, and Ethereum (CCC:ETH-USD) has grown 1,940% over the last three years. However, they have cooled off lately, as has the stock market. As interest from institutional investors and the high volume of transactions that Bitcoin and Ethereum handle daily demonstrate, these cryptos have the potential to reach double your money. Here’s how investing in the top two cryptocurrencies could double your money.
Bitcoin has been down 30% in the last year. Bitcoin’s market cap was roughly $1.2 trillion at its zenith. Its current market value is $774 billion, or 42% of the worth of all cryptocurrencies. So, a lot of money would need to move back into Bitcoin for it to exceed its previous high watermark, to double from its present level. It’s still feasible, albeit more difficult. Despite Bitcoin’s recent ties to the stock market, it is also increasingly used as a substitute asset, such as gold. Moreover, Wall Street banks are developing their Bitcoin coverage, suggesting the establishment of the cryptocurrency era. Currently, around 140 million individuals own some Bitcoin. That is far above the present total of 18.99 billion coins and will continue to grow as more people learn about it and join the movement. The high level of interest in Bitcoin, coupled with a finite supply of 21 million, provides a natural driving force for price appreciation over time. Of course, predicting when Bitcoin will return to its former highs and increase in value is impossible. Consider that there is more than $10 trillion worth of global wealth stored in gold. Wall Street banks are increasing their coverage, which will only help alternative assets migrate to “digital gold” and push up the price of Bitcoin due to increased demand.
Ethereum, on the other hand, is attractive to investors for its increasing usefulness value. It’s a community-run blockchain that allows people without bank access to borrow money, send payments, and play games. It also enables the growth of the market for tokenized art collectibles (NFTs), which are non-fungible digital assets. The spectacular rise of Ethereum over the last several years may be due to the growth of the NFT market — the fastest-growing sector in the digital economy. Since then, Ethereum has risen 292% compared to Bitcoin’s 40% return. According to Jefferies, by 2025, the NFT market will have a value of $80 billion. That is almost twice as much as Jefferies’ previous estimate of $35 billion for 2022. In 2021, the price of ETH reached an all-time high of $4,867, but it is now worth about $2,840. Some investors are concerned that the Solana (CCC:SOL-USD) blockchain will cause increased competition in the NFT industry. However, Ethereum still has an NFT market share of 80%. Solana’s lower transaction fees give it the upper hand, but Ethereum’s forthcoming platform upgrade may offset that advantage. According to analysts’ estimations, if the upgrade goes as planned, ETH price may rise from $4,000 to $8,000 in the near term. Ethereum is leading the charge in the fast-growing sector of the digital economy. However, note that because the NFT market is competitive, ETH is a more risky investment right now than Bitcoin. Bitcoin is the most widely held and has widespread appeal. It is also one of the best ways to get exposure to cryptocurrency trading. These factors offer a floor for the demand to keep prices high over time. In either case, both cryptos have strengths and long term potential to double your money. https://www.mrktwire.com/featured/2-cryptos-that-could-double-your-money/?feed_id=6&_unique_id=623b7719ac319