Greetings again to the readers of the tech world’s best blog, Digital Fixation. Hope all is well in your world as we are roughly 5 weeks away from Xmas. And in my case a few weeks off from work! Anyone who can suggest some decent holiday options in a semi-lockdown state please advise in the comments 🙂 If you recall when we first launched our blog one of the first articles was a short piece on the cryptocurrency in 2020. What timing that was. Roughly a week later we went into a general lockdown here in Sydney and across Australia as a whole. In that piece I lightly touched on cryptocurrency but didn’t really explore the various upsides on investing in specific currencies. So as cryptocurrency continues to be part of many financial discussions I thought I would have a look at what “experts” are predicting for the marketplace in 2021. Here’s a look at which players figure to explode in 2021. Hey wouldn’t Digital Fixation be an interesting name for a digital coin?
All cryptocurrency discussions usually start with Bitcoin. As it is often referred to as the “King” within this marketplace. Bitcoin was the original cryptocurrency as it’s been around for roughly 10 years. And many feel it will be the last one standing when all is said and done. The main objective of Bitcoin is to be a global, P2P (peer to peer) digital cash that’s removed from any regulation and completely decentralised. Furthermore Bitcoin does have the highest liquidity in the cryptocurrency market, which makes it the easy one to purchase if you’re just starting out in this space. As of this week Bitcoin has jumped to a three year high of $17K as Covid crisis has altered investor outlook. We can surmise from the latest happenings that Bitcoin is here to stay! Time to download that Digital wallet again. I’ll return to that at the end of this article.
Litecoin also has large liquidity and a large market cap which will result in great appeal for crypto investors. There’s roughly 84 million Litecoins in circulation, about 4x as many are available compared to Bitcoin. In addition the relative ease in which enthusiasts are able to mine Litecoin adds to its appeal. As of this past week Litecoin has risen to $75.77 and replaced bitcoin cash as the 7th largest cryptocurrency by market value. Litecoin has been in existence since 2011 and is known as an “altcoin”. Which essentially means it was a Bitcoin spinoff.
The brainchild of wunderkind Vitalik Buterin. Ethereum was proposed in late 2013. It currently ranks as the 2nd most liquid cryptocurrency which means ease of the purchase is just below that of Bitcoin. Another upside of Ethereum is the utilisation of smart contracts which enables developers the chance to develop mobile and desktop applications on top of blockchain technology. This strengthens its ability to expedite and process a transaction. Currently Ethereum is sitting at $480 with expectations for it to reach $520 by the end of November. And although Ethereum is frequently compared to Bitcoin, it’s primary objective is beyond just being a digital coin. Ethereum operates in more of a technology ecosystem as it possesses an Internet browser (Mining OS), a coding language and a payment system.
Best known as Ripple. This is another cryptocurrency with a unique upside due to its high speed money transfers. Due to its effectiveness and adoption in the real world so to speak, Ripple has a market cap of approximately $10Billion. It’s also geared towards larger financial institutions more so than individual investors. And the support of said financial institutions certainly works in favour of the currency’s large term prospects. Some analysts have speculated that Ripple may in fact outperform Bitcoin in 2021.
Bitcoin Cash (BCH)
At the moment this currency is approximately number 4 in terms of market capitalisation. Primarily due to its connection to the original Bitcoin. It was initially launched as a speedier alternative to Bitcoin as it allows larger blocks, greater scalability and faster transactions. In fact in recent years within the world of crypto the advocates of BCH have become somewhat of rivals to adherents of Bitcoin. As they feel that Bitcoin has veered too far off the path of their original objective of decentralisation and being anti-establishment.In other words Bitcoin is too mainstream. Cultural clashes within cryptocurrency? Who would have thought? Bitcoin Cash will continue to offer many opportunities as it’s cheaper to invest in and offers lower transaction fees.
I’ve reviewed just a handful of players in this space. As I write this I’m listening to an interesting podcast discussing the Cryptocurrency Revolution. Perhaps in a future edition of Digital Fixation I can review the best digital wallets. For a short time last year I used Jaxx, a premium wallet for Bitcoin, Bitcoin, Ethereum transactions (and a number of others). Until then stay happy, healthy and ready for your next Digital Fix!