The Future Of Money: Must-Invest Cryptocurrencies

Cryptocurrency is a digital asset that investors can buy and trade on crypto exchanges. While thousands of cryptocurrencies have unique aspects, many share common traits. Most cryptos are decentralized, meaning they don't have government backing, and users don't need a bank to complete transactions.

The first cryptocurrency, Bitcoin, was invented back in 2009. Since then, the cryptocurrency market has seen huge growth, with over 1500 different cryptocurrencies created in less than five years.

If you're ready to start investing in cryptocurrency, there are numerous crypto exchanges and platforms to choose from. Some popular options include Coinbase, Kraken, Crypto.com, Binance, and eToro.

It's important to remember that investing in cryptocurrency is high-risk. The market is known for its unpredictability and volatility. Before investing, it's crucial to do your research, understand the risks, and only invest what you can afford to lose.

Bitcoin: the oldest and most popular cryptocurrency, with a large market share

Bitcoin is the oldest and most well-known cryptocurrency, with the largest market share. It was first introduced in 2009, and its popularity has grown significantly since then.

Bitcoin currently has a 40% share of the total cryptocurrency market cap, and its performance over the years has been impressive. In 2017, the market cap of all cryptocurrencies was around $21 billion, while Bitcoin's alone is now over $454 billion.

The price of Bitcoin has seen many highs and lows, and it can be a volatile investment. For example, in 2017, the price of 1 Bitcoin went from around $76 to as high as $20,000. However, it then dropped to around $6000 in February 2018 and has been fluctuating since.

Investing in Bitcoin can be risky, and it is generally recommended only if you have a high-risk tolerance and are already in a strong financial position. It is important to remember that the cryptocurrency market is highly speculative, and there is no guarantee that Bitcoin will continue to perform well.

However, Bitcoin has several advantages that make it a popular investment choice. It is decentralized, and it has the potential to be a non-correlated asset, similar to gold. This means it may not follow the trends of other assets, like stocks. Additionally, Bitcoin has a limited supply, making it impossible for its value to be diluted through inflation.

In conclusion, Bitcoin is a well-established cryptocurrency with a large market share and a dedicated following. Its performance has been impressive, but it is essential to approach any investment in Bitcoin with caution and a thorough understanding of the risks involved.

Ethereum: a leading altcoin with smart contracts and decentralised applications

Ethereum is a blockchain-based cryptocurrency and is currently the second-largest digital currency by market capitalization, after Bitcoin. It was conceived by Vitalik Buterin, Martin Wood, and other members in 2013 and released in 2015.

Ethereum's primary purpose is to create a decentralized suite of financial products that anyone in the world can freely access, regardless of nationality, ethnicity, or faith. This makes the implications for people in some countries more compelling because those without state infrastructure and state identifications can get access to bank accounts, loans, insurance, or a variety of other financial products.

Ethereum's native currency is called Ether, and it is used to pay validators who stake their coins for their work on the blockchain, as a payment method off-chain, and as an investment by speculators.

Smart Contracts

Ethereum introduced smart contracts to the blockchain space, and they are commonly associated with cryptocurrencies. A smart contract is a computer program or transaction protocol that automatically executes, controls, or documents events and actions according to the terms of a contract or agreement.

Smart contracts are like vending machines: if you supply them with enough funds and the right selection, you'll get what you want. They can also hold funds, much like your Ethereum account, and mediate agreements and transactions.

Decentralized Applications (DApps)

Decentralized applications are the front-end or UX of smart contracts. They represent the visible layer connecting users or other applications with the smart contracts running on the blockchain.

DApps are a growing movement of applications that use Ethereum to disrupt business models or invent new ones. They are free from censorship and backed by cryptography.

Investing in Ethereum

Ethereum grew by about 3000% in 2017 and became the second-largest cryptocurrency, placing second behind Bitcoin.

Julian Hosp, a blockchain expert, predicted that Ethereum's market cap could rise to $200 billion by the end of 2023, with the price of Ethereum reaching up to $2000.

However, investing in cryptocurrencies is risky and highly volatile. For example, on June 25, 2019, Ether's price was $335.10, and on July 16, it was worth $205.86—a 40% value drop in 21 days.

Therefore, it is essential to do your research and only invest money you can afford to lose.

Binance Coin: a utility cryptocurrency with a large market cap

Binance Coin (BNB) is a utility cryptocurrency that acts as a payment method for fees incurred through trading on the Binance Exchange. It is the third-largest cryptocurrency by market capitalisation, behind only Bitcoin and Ethereum.

History of Binance and BNB

Binance was launched in June 2017 and within 180 days, it became the largest cryptocurrency exchange in the world. The company was co-founded in China by Changpeng Zhao and Yi He. BNB was launched during an initial coin offering (ICO) in July 2017, with a strict maximum of 200 million BNB tokens.

Uses of BNB

BNB was initially created as a utility token for discounted trading fees in 2017, but its uses have expanded to numerous applications, including payments for transaction fees (on the Binance Chain), travel bookings, entertainment, online services, and financial services. BNB can also be used to invest in certain ICOs listed through Binance’s Launchpad program.

BNB's Market Performance

As of July 2023, BNB had a market cap of $37.3 billion, with one BNB valued at around $242.55. As of May 2024, BNB's market cap had grown to over $87 billion, ranking behind only Bitcoin, Ethereum, and USD Tether.

Privacy coins: allow users to transact privately, e.g. XMR, PIVX, XSPEC

Privacy coins are cryptocurrencies that allow users to make transactions privately and securely. They are designed to address the privacy issues associated with other cryptocurrencies, such as Bitcoin, which has a transparent blockchain that makes transactions easily traceable.

One example of a privacy coin is Monero (XMR), which uses cryptography to shield sending and receiving addresses, as well as transaction amounts. Monero also employs stealth addresses, ring signatures, and ring confidential transactions (RingCT) to ensure the privacy of its users. Another privacy coin is PIVX, which was forked from DASH and implements a Proof-of-Stake algorithm. PIVX offers staking and Masternodes, which provide users with the opportunity to earn rewards and vote on community proposals. Additionally, PIVX utilizes the Zerocoin protocol to anonymize transactions, breaking the links between senders and receivers.

Other notable privacy coins include Zcash (ZEC), which uses zero-knowledge proofs to protect transaction privacy; Spectrecoin (XSPEC), which integrates TOR and OBFS4 for IP obfuscation; and Verge, which employs TOR and I2P routing to obfuscate user IP addresses.

Social media integration: projects bridging social media and blockchain, e.g. TRX, KIN

Social media platforms are increasingly turning to blockchain technology to improve transparency, data ownership, and decentralised incentives. Here is a detailed overview of some notable projects bridging social media and blockchain:

TRX (Tron)

Tron is a blockchain-based content-sharing platform that allows users to create and curate content in exchange for cryptocurrency rewards. Tron's Steemit platform, founded on the Steem blockchain, was the first decentralised app released on the network. It allows users to earn crypto for creating and curating content, with 50% Steem Power and 50% Steem Dollars. Tron also acquired Dlive, a blockchain social media platform for livestreaming that was originally built on the Steem blockchain.

KIN (Kik)

Kik is a teen chat app that has launched its own cryptocurrency, Kin, through an Initial Coin Offering (ICO). Kin is designed to incentivise developers and network contributors by offering them digital services, applications, and other value-added features without the need for middlemen. The long-term vision is to create an in-app marketplace where brands can advertise directly to users via chat and collect payments, while users can sell services within the app.

Other Notable Projects

• Sapien: A highly customisable and democratised social news platform built on the Ethereum blockchain. It aims to champion users and truth, rewarding content creators and curators without centralised intermediaries.
• Steemit: The first social network built on the Steem blockchain, allowing users to monetise content and grow their community. It is similar to Reddit, where users can buy, sell and trade tokens based on their participation and contributions to the platform.
• Sola: A hybrid media and social network governed by AI and users, with over 700,000 users worldwide. Sola uses an internal virtual currency called Action Points, which can be converted into SOL tokens when users endorse or comment on content.
• Indorse: A decentralised platform similar to LinkedIn, based on the Ethereum blockchain. It validates users' skills and credentials through decentralised consensus and AI-based systems, rewarding users for endorsing the skill sets of others.
• OnG.social: A blockchain-based social dashboard that provides control over central-decentralised social media networks and supports community building and social interaction with cryptocurrency rewards.
• Binded: A blockchain copyrighting technology designed for photographers to protect their copyright. Photographers can upload their images to a blockchain-secured vault, ensuring the authenticity and ownership of their work.
• Audius: A decentralised music-sharing and streaming platform built on the Ethereum blockchain, giving musicians direct control over their music and earnings without intermediaries.

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