The year 2023 promises to be a significant year for the development of the metaverse because numerous projects, developments, and ideas shape what will become the constituent elements of the future Internet. Check six cryptocurrencies that could become the next Bitcoin in the article below.
Why Can You Invest in Cryptocurrencies Despite the Market Falling?
There are several explanations for why Bitcoin has been consistently setting price records over the last few years. To understand the situation: if in February the price of the “coin” exceeded $50,000 for the first time, then in March, it rose to $60,000, and the market capitalization of the world’s most popular cryptocurrency exceeded a trillion dollars. So what is the next bitcoin?
The first factor that affects the exchange rate of currencies, in general, and Bitcoin, in particular, is supply and demand. Thus, an increase in demand causes the currency to strengthen and the exchange rate to rise. On the other hand, the increase in supply weakens the exchange rate. Such rules are also relevant to Bitcoin. Yes, the demand for Bitcoin periodically increases due to its wider use in financial transactions. At the same time, speculative demand for Bitcoin as a financial asset causes its price to rise. It is important to note that the reliability of blockchain technology, as well as the anonymity of transactions, increases the level of demand.
Thus, despite the existence in the world of numerous practices of using cryptocurrencies as a measure of value, a means of exchange and accumulation, its complex legal nature does not allow for identifying it with any of the related concepts (money, currency, currency value, legal tender, electronic money, securities, monetary surrogate, etc.).
Which Are Six Cryptocurrencies that Could Become the Next Bitcoin?
- Binance Coin.
Binance Coin is of interest to investors primarily in the context of DeFi as a competitor to Ethereum. While the creators of Ethereum procrastinate on network updates and speeding up transactions, Binance Coin has a great chance to overtake the competition at the turn. In a word, investments in this cryptocurrency may well become promising in the long run.
- DeFi Coin.
Analysts note the stable increase in DeFi Coin liquidity for a long time, in the absence of rapid ups and downs, seeing in this the absence of artificial inflation of the value or the impact of hyped demand on the currency rate.
- Cardano.
These tokens are unique, indivisible, and cannot be changed without the consent of the owner, which is why the technology is used to prove ownership of the specific object to which it is attached.
- Ripple.
Ripple closely monitors the value of fiat money, such as the US dollar or the euro. It allows users to transfer value cheaply and quickly around the world while maintaining price stability.
- ApeCoin.
The platform has a convenient interface, provides clear exchange algorithms, and offers good conditions.
- Ethereum.
Ethereum is a cryptocurrency that is different from Bitcoin. Ethereum shares characteristics with Bitcoin but uses a different consensus mechanism to create blocks or verify transactions. It differs in smart contracts or lower transaction fees.
Never forget that cryptocurrencies are a risk. Weigh all the pros and cons, carefully analyze the possibilities, and most importantly – do not invest the last money and invest only what you are ready to lose.