Beyond Bitcoin towards the next crypto revolution in 2021

The dramatic rise in the value of Bitcoin has put cryptocurrencies on the map in the investment space. Since its inception, no more than a decade ago, Bitcoin has surpassed great heights in terms of value. It is the largest cryptocurrency with a $ 1 trillion economy. While Bitcoin is the largest cryptocurrency, there are currently over 5,000 cryptocurrencies in circulation, many of which are listed on the CoinSwitch Kuber app. However, most of the people are unaware of these coins.

Several digital currencies have posted more striking returns than Bitcoin. Ethereum, the second largest cryptocurrency, has risen 750% since 2020, outperforming Bitcoin’s 600% returns over the same period. Many of these cryptocurrencies now share the limelight alongside Bitcoin. Investors are beginning to wonder: ‘What’s the next crypto revolution in 2021?’

The crypto journey

Cryptocurrencies are the newest class of assets introduced to the investment landscape. Although initially designed as a decentralized alternative to the traditional, centralized financial system, it has also evolved to become a store of value.

While there was an older form of digital currencies from the 1980s, people recognized cryptocurrencies through the lens of Bitcoin. Bitcoin was published as a whitepaper by an anonymous person / organization under the pseudonym Satoshi Nakamoto in 2009. His concept quickly gained popularity and gained attention on a global scale.

Eventually, many Bitcoin-like currencies collectively known as altcoins multiplied in the cryptocurrency market. While not all of those coins are of great use, many of them have proven to be an improvement over Bitcoin itself. Here is a list of the most popular coins currently in circulation.

What to look for

Bitcoin has now clearly established itself as a valuable asset. Investors are increasingly looking for something more meaningful than Bitcoin. While it’s common to consider market value and trends to guess what the next big crypto is, price isn’t the only aspect we need to focus on. Instead, investors should look to the functionality and supply of the digital currency. If a cryptocurrency is useful, it will overcome any obstacles, survive, and continue to grow.

Another factor to look for is scarcity and supply. If a currency does not have a limited supply, it can lose its value over time, as the reserve can be satisfied by increasing demand and cause inflation. For example, Bitcoin gained popularity because it removes intermediaries from transactions and serves as a deflationary asset with a limited supply of only 21 million BTC in total.

A cryptocurrency will have the best chance of becoming the next crypto revolution if it has the following characteristics:

• It is transparent
• It has a definite purpose
• Easy access
• There is an efficient and trustworthy team behind it.
• Your network is reliable

The next crypto revolution of 2021

The cryptocurrency market is a melting pot of groundbreaking innovations in technology. From time to time many cryptocurrencies are introduced with great utility and functionality. Here are some trends that could revolutionize the crypto space in 2021.

• DeFi
  As the name suggests, decentralized finance (Defi) is a diverse group of financial applications based on cryptocurrency or blockchain technology. As an open financial system, Defi aims to improve the speed and efficiency of financial transactions by eliminating intermediaries and delays due to a centralized system. Defi offers its users direct control over their money. It is being used in various fields like banking, insurance, etc., all over the world.

• NFT
  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 that helps users distinguish between different NFTs. The data also allows us to verify the authenticity of the assets. Since each NFT is special on its own, they are not interchangeable.

• Moles
  Polka Dot connects multiple specialized blockchains in 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 any one time. But Polka Dot could process multiple transactions on multiple chains in parallel. Bringing together multiple blockchain networks into one scalable network allows blockchain to reach its full potential for practical applications.

• Yield agriculture
  It is part of the Defi network and allows users to earn cryptocurrencies using cryptocurrencies. Its process is similar to lending money to your peers and earning interest on the amount borrowed. Yield farming requires its users to lock their crypto assets for a specified period in exchange for rewards. Rewards can be earned in the form of interest, new tokens, other cryptocurrencies, etc. The fundamental advantage of yield farming is the lucrative profit opportunity that it entails.

Bottom line

The cryptocurrency market is constantly changing. With cryptocurrency apps like Coinswitch Kuber making significant strides in facilitating cryptocurrency investing, there are countless opportunities for crypto investors in India to build a strong portfolio.

However, before making a meaningful investment decision, investors should keep in mind that they must question the functionality of the coin. If a cryptocurrency is functional enough, it will continue to thrive.

Disclaimer:
This content is not editorial and TIL hereby disclaims any and all warranties, express or implied, related thereto. TIL does not guarantee, attest or necessarily endorse any of the above content, nor is it responsible for it in any way. The article does not constitute investment advice. Take all necessary steps to ensure that the information and content provided is correct, up-to-date and verified.