The dramatic rise in Bitcoin value has put cryptocurrency on the map in the investment space. Since its inception - not over a decade ago, Bitcoin has surpassed great heights in terms of value. It is the biggest cryptocurrency with a $1 trillion economy. While Bitcoin is the largest cryptocurrency, there are over 5000+ cryptocurrencies currently in circulation. However, most people are unaware of these currencies.
Several digital currencies have posted gaudier returns than Bitcoin. Ethereum - the second-largest cryptocurrency, has risen by 750% since 2020, besting Bitcoin's 600% returns during the same period. Many such cryptocurrencies are now sharing the spotlight alongside bitcoin. Investors are starting to wonder, 'What is the next crypto revolution in 2021?'
Eventually, many Bitcoin-like currencies collectively known as altcoins mushroomed in the crypto market. While not all of those currencies bear high utility, many of them have proven to be an improvement over Bitcoin itself. Here's a list of the most popular coins currently in circulation.
So, What To Look For ?
Bitcoin has now clearly established itself as a valuable asset. Investors are increasingly on the lookout for something more significant than Bitcoin. While it is common to consider the value and market trends to guess which is the next big crypto, price is not the only aspect we need to focus on. Instead, investors need to look for functionality and supply of the digital currency. If a cryptocurrency is useful, it will surpass any hindrance, survive and continue to grow. A cryptocurrency will have the highest chance of becoming the next crypto revolution if it has the following characteristics:
- It is transparent
- It has a definitive purpose
- Easily accessible
- There is an efficient and reputable team behind it
- Its network is trustworthy
The cryptocurrency market is a melting pot of groundbreaking innovations in technology. Many cryptocurrencies with high utility and functionality are being introduced from time to time. Here are a few trends that could revolutionise the crypto space in 2021.
- DeFiAs the name suggests, Decentralised Finance (Defi) is a diverse group of financial applications founded on cryptocurrency or blockchain technology. As an open financial system, Defi aims to improve financial transactions' speed and efficiency by eliminating the middlemen and delays due to a centralised system. Defi offers its users direct control over their money. It is being used in various fields like banking, insurance etc., across the globe.
- NFT
Non Fungible Tokens are digital assets with a presence only on the internet. They represent various tangible and intangible assets such as art, paintings, sports cards, music data, virtual real estate etc. Each NFT contains unique information which helps users distinguish between different NFT's. The data also allows us to verify the authenticity of the assets. Since each NFT is special on its own, they are non-exchangeable.
- Polka DotPolka Dot connects multiple specialised blockchains into a unified network. It is also known as the next-generation blockchain technology. In general, a blockchain can process only a limited number of transactions at a given time. But Polka Dot could process multiple transactions on multiple chains parallelly. Bringing several blockchain networks together into a scalable network enables blockchain to reach its full potential for practical applications.
- Yield Farming : It forms part of the Defi network and allows users to earn cryptocurrency using cryptocurrency. Its process is similar to lending money to your peers and earning interest over the loaned amount. Yield farming requires its users to lock in their crypto assets for a specified period in return for rewards. Rewards could be earned in the form of interest, new tokens, other crypto coins etc. The fundamental advantage of yield farming is the lucrative profit-making opportunity involved.
However, before making a significant investment decision, investors should keep in mind to question the functionality of the currency. If a cryptocurrency is functional enough, it will continue to thrive.
What you guys think about this ? Which Crypto can overtake Bitcoin? Do share your views in the comment.
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