What Currency is Worth Investing in (2021: What Currency is Good to Invest in)?

08/16/2023 11:59 • AI & Tech Insights • 73 views

What currency is worth investing in? According to Cointelegraph, the fluctuations of Bitcoin and other cryptocurrencies have attracted a lot of attention in recent years. However, in the long run, this development may not be beneficial for investors because the prices of these currencies are affected by uncertainties. For example, when the price of BTC drops, people may see it as a speculative asset, while other mainstream currencies like ETH and EOS do not experience such situations. Therefore, the value of a project will increase or decrease if it can succeed and continue to rise (or maintain relatively positive market sentiment).

What currency is good to invest in 2021

In the current market environment, what investment options can be chosen?

1. Bitcoin

Many mainstream cryptocurrencies have started to enter the bull market. However, as market conditions continue to change, people’s understanding of digital assets is also changing. From November of last year to early March of this year, the price of Bitcoin continued to rise to over $44,000, with a maximum increase of about 60%, indicating that many people believe Bitcoin is the future trend, but not many other altcoins. 2. Ethereum

The total market capitalization of the current crypto market has reached nearly $9 billion, accounting for 48.2% of the global GDP. If calculated by this standard, the market capitalization of Ethereum this year will exceed 30 trillion RMB. Although the current price of Ethereum is more than twice as high as in previous years, its growth rate is much slower than that of Bitcoin. From the beginning of 2020 to the present, the daily trading volume of Ethereum has reached $4 billion, while in the first three quarters of 2019, only 2 projects achieved positive returns. At the end of 2019, the daily average transaction volume of Ethereum was close to $10 million, reaching $30 million at the end of 2019; in the third quarter of 2020, this figure doubled and then fell back to $5 million. By the end of December 2020, this figure was less than 10 million RMB (according to the market conditions at that time), so it is still very good for investors.

Another point worth noting is that in addition to the DeFi field, there are some public chains under development, such as EOS and TRON, which are issued based on the PoS protocol, such as Cosmos, etc. These applications will continue to develop after their launch because they are tokens under the PoW consensus mechanism, and the decentralized networks they support are also completely open-source. Therefore, there will be many new applications in the future.

Regarding the various applications in the blockchain ecosystem, whether now or in the future, they will not stop. Just like the Internet, we can see more and more DApps, wallets, or games born every day, and even more new application scenarios will be created. These platforms not only need to have their own set of technical knowledge but also need to have a good infrastructure to support the development of the entire industry.

2. Filecoin

Filecoin is a distributed storage network designed to achieve storage resource sharing and value exchange. The network consists of two subsystems: the main network and the smart contract, the virtual machine, and four core modules. Through this node, data processing efficiency can be effectively improved and energy consumption can be reduced; secondly, it combines sharding technology with zero-knowledge proof technology. Filecoin uses proof-of-work, which is a new design aimed at solving the problems faced by the existing Internet.

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What Currency is Worth Investing in (2021: What Currency is Good to Invest in)?

What currency is good to invest in 2021

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