HomeBusinessBitcoin halving is complete. 3 Cryptocurrencies to Buy Now.

Bitcoin halving is complete. 3 Cryptocurrencies to Buy Now.

The fourth halving of Bitcoin (CRYPTO: BTC) mining rewards are on the books and the crypto world is buzzing. Now that Bitcoin inflation has dropped and scarcity has increased, experts are predicting a price surge that could ripple through the entire market.

The halving means that miners now receive fewer bitcoins for validating transactions, making each digital coin more valuable. This is expected to drive prices higher over the next year, assuming Bitcoin demand remains stable or increases. Without that market response, mining becomes unprofitable and the transaction processing system falls apart.

That is obviously good news for Bitcoin investors. The leading cryptocurrency should be at the top of your list if you’re dipping your first toe in the crypto waters these days.

Growth investing mastermind Cathie Wood of ARK Invest agrees: the inflation-dampening effect of the halving cycles plus the advent of spot Bitcoin Exchange-Traded Funds (ETFs) could drive the price of Bitcoin to $1 by the year 2030. 5 million or more to push.

More aggressive adoption of Bitcoin in the financial community could push the price of the coins up to $3.8 million, according to Wood. And I don’t think she’s wrong about that. The only question is how quickly traditional bankers will embrace the increasingly digital global economy.

But Bitcoin isn’t the only crypto in play right now. Ethereum (CRYPTO:ETH) And Dot (CRYPTO: POINT) also seem like great long-term investments to me – for very different reasons.

Ethereum

Bitcoin and Ethereum often move together. Their price charts are almost twins, except Ethereum’s long-term gains tend to be a bit loftier:

See also  Hundreds of TD Ameritrade users are complaining about their new online home.
Bitcoin price chart

Bitcoin price chart

This happens for a number of reasons:

  • Market sentiment about Bitcoin tends to color the entire crypto market. When the oldest and biggest name in the industry makes headlines, the idea of ​​digital currency gains space in the public discussion. As such, Ethereum follows suit in a fairly direct manner from its larger cousin.

  • Ethereum is also a crypto pioneer. The smart contracts add value to the broader sector, and many popular digital currencies are actually ERC20 tokens on the Ethereum network. Developers tend to get started building apps and programs that rely on smart contracts when cryptocurrencies inspire headlines. So it makes sense that the leading smart contract platform outperforms Bitcoin’s simple store of value profile.

So I expect Ethereum to follow suit with Bitcoin’s upcoming price increases, with an extra shot of adrenaline added to the mix. Bearish analysts would point out that Ethereum has many rivals today, led by the faster one Solana (CRYPTO: SOL) And Cardano (CRYPTO:ADA) systems.

See also  Cleveland-Cliffs shares doubled after sale

But Ethereum has a several-year head start on these potential replacements and a much larger market footprint. And don’t forget that the Ethereum blockchain is in the middle of a long upgrade process, increasing contract execution speed and adding new features.

The king of digital contracts could end up sharing the crypto throne with a few rivals, but there’s room for some substantial winners above that.

Dot

If Ethereum is Bitcoin’s turbo twin, Polkadot plays the role of an underrated and low-priced alternative. Bitcoin prices have more than doubled in the last two years, but Polkadot is down 34% over the same period:

Bitcoin price chartBitcoin price chart

Bitcoin price chart

Still, Polkadot seems poised to make an appearance in the near future. This is the official blockchain ecosystem of the Web3 Foundation, and the internet as we know it appears to be in need of a new architecture. The age of social media giants is growing tired.

With its focus on Web3 ideals and interoperability between different blockchain systems, Polkadot is uniquely prepared to win in the coming big change. The Polkadot project aims to build a decentralized internet and attract developers and projects looking for advanced functionalities in a more personal era of online interaction.

Polkadot is a bit lost in the market noise at the moment, as investors don’t see much evidence that the Web3 revolution is coming. I see the sliding price as a wide-open buying window, allowing Polkadot to make larger percentage gains from a lower base.

See also  Alphabet, Microsoft, Amazon and other tech stocks react to CPI report

With Bitcoin’s halving events boosting overall market sentiment, this could be the perfect time to invest in Polkadot at a ridiculous discount.

Should you invest $1,000 in Polkadot now?

Consider the following before purchasing shares in Polkadot:

The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and Polkadot wasn’t one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.

Think about when Nvidia created this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $566,624!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates, and two new stock picks per month. The Stock Advisor is on duty more than quadrupled the return of the S&P 500 since 2002*.

View the 10 stocks »

*Stock Advisor returns May 13, 2024

Anders Bylund has positions in Bitcoin, Cardano, Ethereum, Polkadot and Solana. The Motley Fool holds positions in and recommends Bitcoin, Cardano, Ethereum, and Solana. The Motley Fool has a disclosure policy.

Bitcoin halving is complete. 3 Cryptocurrencies to Buy Now. was originally published by The Motley Fool

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments