Half of 2020 has gone by now.
Needless to say, external circumstances have thrown all previous predictions of
this year to the ground, although markets have kept moving and evolving all the
same. Thus, cryptocurrencies aren’t in the same spot they were when this year
began – some have greatly appreciated in value, while others have sadly lost
most of theirs.
For prospective investors in the
market, this means one thing: it’s time to take a look at it and, from what has
been, try to predict what soon might be.
Bitcoin
Many of us dream of a day when we can
write about the best crypto investments, most profitable crypto, or
best-selling crypto tokens and Bitcoin isn’t a part of the conversation. After
all, from a technical level, the goals of Bitcoin are impossible due to its
very own design.
The problem is, of course, that
Bitcoin sells. It moves massive amounts of money, and its name has come to
become synonymous with cryptocurrencies in general. Its main goal, that of
becoming the de-facto worldwide trade currency, might never come to happen, but
it has become the biggest speculative cryptocurrency with a price that went
from under $1/token a decade ago to almost $20,000/token in recent years.
As such, the value of Bitcoin can be
seen as a metric on which to measure the health of the market. And while it
hasn’t reported the ridiculous gains from 2017 this year, tokens bought in late
December 2019 or early January 2020 have seen a 50% ROI by now, with a current
bull market going in.
So, the facts are clear: Bitcoin
still reigns supreme and, even if the price goes down in the short term,
history has taught us it will only go back up.
Ethereum
As of this writing, Ethereum is at a
year-long high, and its current going price is almost three times what it was
in the beginning of the year. This puts it square among the most profitable crypto this year, simply because a 200% ROI during a 6-month period is way above the
expectations for most cryptocurrencies or even stock shares.
There’s an actual reason for this,
too. Or several. First, as happens with Bitcoin, ETH is one of the largest names
in the market – which gives it an ever-fluctuating value where peaks tend to
repeat and valleys never last long. Another reason, though, is that Ethereum is
in constant change, with development on the blockchain never stopping.
This summer, Ethereum plans to roll
out its 2.0 update, which will do away with the current proof-of-work algorithm
for the more modern, greener, proof-of-stake algorithm. In essence, this means
the effective disappearance of ETH mining, since all validations will now be
made based on staking. While there are detractors to proof-of-stake, mainly due
to security concerns, so far said concerns haven’t come true of any blockchains
using PoS, so Ethereum’s rollout of the model is still planned, and
expectatives are high.
Do note that July is regularly a
bullish month – Ethereum hit its cap last year by this date, too – with August
and September often being bearish. This means that Ethereum value (and that of
most crypto) could well go down soon. However, if Ethereum’s rollout of 2.0 goes
as planned, its own bullish market is likely to continue at least until the 2.0
release.
Chainlink
A small token that has greatly
appreciated, Chainlink has been the talk of the market for the last six months.
While the blockchain isn’t new – it’s been traded for a few years now – it
really gained traction this year, with its price going from less than $2 in
early January to over $8 in early July 2020, signaling over a 300% ROI for
well-timed investors.
As a result of this and a string of
collaborations announced by the team during the year, Chainlink’s price has
remained bullish so far – and the expectation is that the trend will continue
for the rest of the year. While usually the early bull market is the most
important, since that’s when cryptocurrency gains grow fast, it’s still quite
early for Chainlink, with some analysts predicting the price will likely cross
the $20 barrier next year, and might even hit the $50 barrier by 2022.
While analysts aren’t always right,
the truth is Chainlink is one of the most hyped cryptocurrencies right now, and
perhaps one of the few tokens that have more than just speculation to back them
up.
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