WHAT IS THE BEST CRYPTOCURRENCY TO INVEST IN 2021?

cryptocurrency, ethereum, litecoin
Ankit Kumar

Ankit Kumar

Author

Not long ago money was a non-existential entity and now, it is leading the world from the front. The very existence of this entity has been a favourite topic of debate for economist and finance enthusiasts. The origin of money has much theory of its own. Researchers are still battling over how and where the money came to be. Mainstream economists assume that the bartering of goods and services inspired money’s invention whereas anthropologists and archaeologists contend that early states invented currency as a means of the debt payment. These varying view on the existence of money makes it even more tempting. Nevertheless, we all can come to this agreement that the application of money can be practised for four different purposes: first, it serves as a means for exchanging goods and services. Currency enables the payment of debts. It represents a general measure of value, making it possible to calculate the prices of all sorts of items. And, finally, money can be stored as a wealth reserve.

With the elevation in technology, mankind has made a new form of virtual currency called cryptocurrency. A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward. Cryptocurrencies work using a technology called the blockchain. Blockchain is a decentralized technology spread across many computers that manage and records transactions. Part of the appeal of this technology is its security. Cryptocurrency is the latest buzzword in the market which took its own time to boom and give a pathway for people to invest and earn profit in a short time. The total value of all cryptocurrencies on may 20, 2021, was more than $1.7 trillion — down from april high of $2.2 trillion, according to coinmarketcap.

Finance geek and enthusiasts see cryptocurrencies such as bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable.
Some like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation.
Others like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system and can be more secure than traditional payment systems. Some speculators like cryptocurrencies because they’re going up in value and have no interest in the currencies’ long-term acceptance as a way to move money.

Coming to our topic what is the best cryptocurrency to invest in 2021? Here are some leading cryptocurrencies which are dominating the market like a true bull.

Bitcoin – $735.3 billion

Ethereum – $324.2 billion

Tether – $61 billion

Binance coin – $57.5 billion

Cardano – $54.6 billion

Xrp – $46.5 billion

Dogecoin – $44 billion

Polkadot – $22.1 billion

Usd coin – $21.9 billion

Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments. The reason? Just like real currencies, cryptocurrencies generate no cash flow, so for you to profit, someone has to pay more for the currency than you did. For those who see cryptocurrencies such as bitcoin as the currency of the future, it should be noted that a currency needs stability so that merchants and consumers can determine what a fair price is for goods. Bitcoin and other cryptocurrencies have been anything but stable throughout much of their history. This price volatility creates a conundrum. If bitcoins might be worth a lot more in the future, people are less likely to spend and circulate them today, making them less viable as a currency.

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