Everything on Bitcoin? Financial experts advise you to compare cryptocurrencies!
Cryptocurrencies are known for their high volatility. The reasons for price drops or rallies are usually very difficult to predict. Here, one only has to think back briefly to when a single tweet from Elon Musk, the Tesla CEO, was enough to trigger double-digit price swings, in both directions. Moreover, unlike the stock market, digital currencies often move more extremely. That’s why double-digit losses or gains within a very short period of time are not at all uncommon.
These are all important factors associated with cryptocurrencies, and they affect all cryptocurrencies, Bitcoin just as much as Ethereum or Chainlink. However, it is also a fact that cryptocurrencies offer a lot of security and a high level of anonymity thanks to blockchain technology. This is a factor that casino players particularly prefer. That is why even Chainlink Casinos are becoming more and more popular.
Invest everything in Bitcoin?
A look at the past immediately reveals that the developments of Bitcoin in particular were characterized by many extremes. However, all cryptocurrencies were equally affected by this price rally. In the end, however, Bitcoin was always particularly in the spotlight. Some may wonder, after the recent price losses caused by the crypto crash triggered by the dramatic developments around FTX, whether Bitcoin will make a comeback once again.
At this point, however, it immediately comes to a counter question: has Bitcoin ever played a minor role in the crypto market? The answer is of course: not at all. Ultimately, Bitcoin, like all other cryptos, is always subject to strong fluctuations. While no one is able to accurately predict the Bitcoin’s development, it should not be forgotten here that the Bitcoin has beautifully long since moved into the global interest.
Equally important is the fact that the Bitcoin also introduced the blockchain. This technology in particular not only plays an extremely important role for the Bitcoin alone, but it also ensures many future changes in many respects. But besides the Bitcoin, other cryptos on the market have also proven this.
A closer look on Ethereum
Very early on, Ethereum managed to present itself as a real alternative to Bitcoin. Ethereum is now the second largest cryptocurrency with a market capitalization of currently around 151 billion US dollars. With the update 2.0, the Ethereum blockchain is to be enlarged advantageously. In addition, the profile of the cryptocurrency is said to have been sharpened.
The focus of the update is said to be on the switch to the energy-saving proof-of-stake algorithm. This is used for the verification of transactions on the blockchain. The more efficient algorithm also ensures the expansion of the capacity of the Ethereum blockchain.
Before the update, 15 transactions per second were possible, whereas Bitcoin only manages 7 transactions per second. The update 2.0 is now supposed to provide for a significant increase. Here one speaks of 100,000 transactions per second. As far as transaction speed is concerned, however, there are currently smaller cryptocurrencies like Solana (SOL) that still outperform Ethereum.
But Ethereum has another plus point, because the NFT hype may play an important role for the development of the cryptocurrency in 2022. All NTF marketplaces are currently based on the Ethereum blockchain.
Cardano (ADA) and Solana (SOL)
Because Cardano already relies on the efficient proof-of-stake algorithm, faster and cheaper transactions than with Ethereum or Bitcoin are already possible. In addition, the Cardano blockchain does not devour vast amounts of resources for mining. However, Cardano (ADA) is no longer the only cryptocurrency that can score with these advantages. ADA’s most important competitor is currently the cryptocurrency Solana (SOL).
Solana is a real competitor for Cardano because it uses the even more efficient proof-of-history mechanism. More than 50,000 transactions per second are already possible here because of this. However, this is not the end of the line, because according to the developers, the value is to be increased to several 100,000 transactions per second. This is the reason why Solana is currently the fastest and cheapest cryptocurrency in the field of blockchain-based decentralized finance (DeFi for short) for the settlement of smart contracts. These digital contracts are also based on the blockchain.
The Cardano network is planning even more projects for decentralized applications. Currently there are more than 127 projects writing applications for the Cardano blockchain. As early as 2021, Cardano founder Charles Hoskinson announced that the launch for 20 to 30 of these projects is planned for the first quarter of 2022. In addition, Cardano’s open source project structure is expected to include several institutions in 2022.
In its research note, Bank of America wrote in January that Solana could become the “Visa of the digital asset ecosystem.” Solana was only launched in 2020 and then gained significant adoption within a very short period of time. Solana has the fastest blockchain in the world. On top of that, Solana is also still the fastest growing ecosystem in the crypto world. The system includes more than 400 projects.
Decentraland (MANA)
Decentraland is a virtual world. Here, the user acquires land on a virtual map. Subsequently, he can trade with it. In this world, each item is an NTF that can be traded in the marketplace. The currency used to make the purchases is called MANA. Last November, the temporary high of this currency was a little over $4. After the general low in the crypto market, the currency stood at around 2.40 US dollars. If that and the Metaverse issue continue to gain momentum, there could still be a significant rise here.
Ripple (XRP)
For the Ripple there is meanwhile a winged word, the “bank’s darling”. But here you have to know that the Ripple has been the subject of repeated legal disputes with the US Securities and Exchange Commission in recent years. As a result, the cryptocurrency has attracted a lot of attention. From the SEC, the Ripple creators are accused of bringing a stock to the market with the Ripple. However, Ripple is defending itself against this interpretation. Despite everything, the Ripple price is holding fairly steady. The cryptocurrency is generally considered to be quite promising.
