Good Sunday everyone!
In the first quarter of 2021 Bitcoin rocketed up from 20k to 60k in the matter of months. Ever since the crypto currency market has been in a downtrend from its previous highs. Currently we are seeing price consolidation across all crypto currencies.
Crypto Currency markets move in cycles. There is a bull market of massive run ups in the range of 100-200% followed swiftly by a pull back of 40-50%. As such the best case scenario for long term growth of capital currently is to buy and hold an asset with the following three things.
- Good mission that allows scalability while also serving to attract potential coin users.
- Good team. Your currency of choice needs to have constant development as the crypto market is evolving at an alarming pace. If your coin team can’t keep up then it will fail.
- Good ecosystem. Who is using the coin and for what purpose? Does your potential investment solve an issue?
Several coins have one or two but very few have all three of the aforementioned conditions. The following is my list of investments that I plan on holding for the remainder of 2021 and into 2022.
4: Solana (SOL)
Solana is a rather new coin having only become publicly tradable in May of last year. Since then it has shot up to and consolidated in the high $30’s.
I hold about 5% of my crypto portfolio in Solana. The reason is because of its prototype technology of Proof of History which helps to speed up transaction speeds. Proof of History works by entrusting each verifiable block with a score which then allows for the blockchain to speed up. Currently it is advertised at processing up to 710k transactions per second, which would make it one of if not the fastest crypto’s on the market.
Further, the team is consistent. There are constant development updates to the coin and the ecosystem. This means that Solana will have a market in the future and any investment right now is more than likely to gain in capital over the next bull cycle.
It’s no secret that Ethereum is a beast of a coin. Bitcoin started out as just a simple proof of work coin that allowed transfer of wealth without an intermediate partner such as a bank. Ethereum built upon this by plugging in a programming language to the blockchain technology. As such Eth’s price has skyrocketed from less than a dollar to around 2k over the past 5 years.
Eth’s programmable language has allowed a massive ecosystem to build up around Ethereum. There are Ethereum apps for just about everything and no other coin on the market has a larger ecosystem then Ethereum. Currently Ethereum is transferring from its Proof of Work consensus algorithm to a Proof of Stake system, which is expected to fully release in late 2022.
Ethereum would be ranked #2 but its current gas prices at around $22 a transaction make it too cumbersome to use outside the largest of transactions. The ETH 2.0 seeks to change that but it’s yet to be seen what exact type of technology will be employed to fix the issue.
Ahh, Cardano. If Ethereum is the hare then Cardano is most certainly the tortoise. This is because the development of Cardano has to undergo a massive academic vetting process before development takes place. While this in theory makes the best approach over time, in the rapidly evolving world of crypto Cardano is at risk of being left behind.
Further, Cardano’s mission is to provide a one stop shop for all transaction needs is an incredibly ambitious goal. That being said the dev team provides constant updates to the Cardano project and we are seeing a larger percentage market cap go to Cardano over time.
During the next bull run it is possible that Cardano could break up to around $10 which would be around a 6x increase from its current price. Also, Cardano runs off a Proof of Stake system, a system which allows you to passively generate more Ada coins in a wallet while you wait.
For a full rundown on Cardano check out this post!
Bitcoin is still king. It has stood the test of time and has transformed into a deflationary asset that banks and hedge funds hold to hedge risk within their portfolio.
Bitcoin leads the market. Holding Bitcoin has demonstrated how important it is for investors to invest and walk away from the crypto market. Bitcoin’s price will more than likely increase over the next 10 years to above 400k a coin.
The market cap for bitcoin is steadily decreasing. At some point in the future a new crypto will be king, but until then you should hold bitcoin within your portfolio.
Best of luck!