The meteoric surge in the value of Bitcoin has put cryptocurrencies on the map as a viable investment option. While Bitcoin is the most popular cryptocurrency, there are already over 5000 in use, many of which are listed on the CoinSwitch Kuber app. The majority of people, however, are unaware of these currencies.
Several digital currencies have outperformed Bitcoin in terms of gains. Ethereum, the second-largest cryptocurrency, has increased by 750 percent since 2020, outperforming Bitcoin's 600 percent gain. Many of these cryptocurrencies are now competing with bitcoin for attention. 'What is the next crypto revolution in 2021?' investors are beginning to wonder.
The Cryptocurrency Journey
Cryptocurrencies are the most recent asset class to enter the investment world. It was created as a decentralised alternative to the existing and centralised banking system, but it has now matured into a store of value.
People recognised cryptocurrencies via the lens of Bitcoin, despite the fact that there had been some prior forms of digital currency since the 1980s. In 2009, an unknown person or organisation using Satoshi Nakamoto's pseudonym published a whitepaper on Bitcoin. Its concept immediately grew in popularity and drew worldwide notice.
Eventually, the crypto market exploded with a slew of Bitcoin-like currencies known as altcoins. While not all of those currencies have proven to be useful, several have proven to be superior to Bitcoin. Here's a rundown of the most common coins in circulation right now.
What should you be looking for?
Bitcoin has now solidified its position as a valuable asset. Increasingly, investors are looking for something more significant than Bitcoin. While it's normal to look at the price and market trends to figure out which cryptocurrency will be the next big thing, pricing isn't the only factor to consider. Rather, investors should check for the digital currency's functioning and supply. If a cryptocurrency is valuable, it will overcome all obstacles, survive, and expand.
Another thing to keep an eye out for is shortage and supply. If a currency's supply is not restricted, it may lose value over time when demand outstrips supply, resulting in inflation. Bitcoin, for example, has grown in popularity because it eliminates middlemen from transactions and functions as a deflationary asset with a total supply of only 21 million BTC.
A cryptocurrency will have the highest chance of becoming the next crypto revolution if it has the following characteristics:
- It is transparent
- It has a definitive purpose
- IEasily accessible
- There is an efficient and reputable team behind it
- Its network is trustworthy
The Next Crypto Revolution of 2021
The bitcoin sector is a melting pot of technological breakthroughs. From time to time, a slew of new cryptocurrencies with great use and functionality are introduced. Here are a few predictions for how the crypto industry will change in 2021.
DeFi
Decentralised Finance (Defi) is a broad category of financial applications based on cryptocurrency or blockchain technology, as the name implies. By eliminating middlemen and delays caused by a centralised system, Defi intends to increase the speed and efficiency of financial transactions.
Defi gives its customers complete control over their funds. It is employed in a variety of areas around the world, including banking and insurance.
NFT</b
Non Fungible Tokens are digital assets with a presence only on the internet. They represent various tangible and intangible assets such as art, paintings, sports cards, music data, virtual real estate etc. Each NFT contains unique information which helps users distinguish between different NFT's. The data also allows us to verify the authenticity of the assets. Since each NFT is special on its own, they are non-exchangeable.
Polka Dot
Polka Dot connects multiple specialised blockchains into a unified network. It is also known as the next-generation blockchain technology. In general, a blockchain can process only a limited number of transactions at a given time. But Polka Dot could process multiple transactions on multiple chains parallelly. Bringing several blockchain networks together into a scalable network enables blockchain to reach its full potential for practical applications.
Bottom Line
The bitcoin market is constantly shifting. There are numerous options for crypto investors in India to establish a robust portfolio, with cryptocurrency apps like Coinswitch Kuber making great progress in easing crypto investment. Investors should, however, keep in mind that the currency's operation should be questioned before making a big investment choice. A cryptocurrency will continue to grow if it is sufficiently functioning.