Which cryptocurrencies are forecasting the highest returns in 2022?
When Bitcoin (BTC) first hit the scene in 2009, it was the only game in town. It was able to develop its infrastructure and following. As it grew in popularity, other players realized that if they so chose, it would be possible to create competing altcoins with different features, barriers of entry, mining requirements and blockchains. Cue the explosion of thousands of currencies built on the internet, independent of brick-and-mortar institutions and opaque banking norms.
While there are some currencies that were very popular for brief moments of time and are no longer with us, many others are not only surviving but thriving to the great joy of the investors who took a chance and are now reaping the returns on their investment. It is imperative that a coin not only grow in usability but also sustain its own development, avoiding the Icarus affect. This proves to new investors, or those who only minimally invested, that the cryptocurrency is sustainable.
It will surprise no one that Bitcoin (BTC) has been forecast as the cryptocurrency with the highest returns for its investors. As of June 2022, the current cost per coin is hovering just above $21,000, with approximately 19 million coins currently in circulation. Bitcoin is designed to adhere to the economic tradition of supply and demand as there is a total maximum supply of 21 million BTC. As more companies begin to adopt Bitcoin as one of their default currency options for customers, the demand is expected to continue to increase.
One of the brightest examples is Ethereum (ETH), which is set to be Bitcoin’s biggest competitor in 2022. According to the OKX cryptocurrency list, Ethereum’s current cost is around $1,200, second only to BTC. ETH is an excellent example of the potential uses for crypto technology and the blockchain because as Ethereum has positioned itself as the best market for smart contracts and NFTs (non-fungible tokens). In both case studies, the ability to use the cryptocurrency to complete transactions adds legitimacy to the practice of using crypto, but also solidifies Ethereum as an altcoin that will have incredibly high returns for its buyers and investors.
While Ethereum is one of the more established altcoins, there are numerous other cryptocurrencies available that will undoubtedly find their footing in 2022. One arena which will encourage the growth of crypto is Web 3.0, also commonly referred to as web3. Developments such as the Metaverse will demand an economic structure that only decentralized coins can provide, mainly as gaming and digital commodities become more prevalent in web3. One of the currencies set to explode in this new version of the internet is MANA, used in Decentraland and built using the Ethereum blockchain. One of the core uses of MANA is to buy land and NFTs in the virtual world. More people are joining Web3 platforms, gaming networks and digital landscapes, and these currencies will begin to reward companies and individuals that invest.
If the world of the metaverse seems a little intimidating, one can always turn to cryptocurrencies which are categorized as stablecoins. These altcoins are dependent on fiat currencies, such as the euro, US dollar and Chinese yuan. Due to the fact that they depend on these traditional currencies, some consider them a more reliable investment opportunity. One of these currencies, Tether, is linked to the US dollar. It is currently the most powerful stablecoin on the market and is most often used by companies and individuals when they need a coin with a more predictable value.
Cryptocurrencies allows many different types of investors to find their niche in the ecosystem. Some, who want to pursue the most well-established options, can invest in Bitcoin or Ethereum, both of which have proved to be above much of the volatility that other altcoins have suffered from. Others can begin to build their portfolio in the web3 space with coins such as MANA, that are literally designed to buy digital land in a virtual world. Still, others have the option to pursue the most stable cryptos, ones linked to fiat currencies like the US dollar. Though, at first, these seem counterintuitive to the whole design of cryptocurrencies, it is a safe way to enter the world of digital currencies. As we enter the 2020s, it would be foolish not to pay close attention to the above cryptocurrencies and all their untapped potential.
