London, UK, 14h Feb 2022, Binary News Network, The term cryptocurrencies are derived from the term’s cryptography and currency. They are digital currencies that use encryption techniques for security purposes, making it difficult to counterfeit them. As of today, there are over 1000 types of cryptocurrencies in existence!
What’s even more amazing is that this number continues to grow rapidly as new altcoins (alternative coins) emerge almost daily. Some of these currencies are legitimate, while others are scams. The Feds have recently testified before congress that over $180 billion worth of cryptocurrencies is currently in circulation!
Cryptocurrencies have become so popular due to the many benefits, including decentralization, speed, lower fees, and transparency. They also solve another major problem which is double spending. Double spending occurs when a user tries to send the same digital token twice, using two different transactions simultaneously. This is usually mitigated by a central authority that verifies all transactions.
With cryptocurrencies, this problem is eliminated since there is no central authority verifying transactions. FinancialCentre broker, Daniel Levin says, the decentralized nature of cryptocurrencies makes them extremely difficult to hack and steal, which is another major reason they’ve grown in popularity.
The main reasoning for this growth is that people are starting to realize how cryptocurrencies can be used as an effective form of investing. This has driven their market value through the roof! Many investors see them as a potential replacement or an alternative to paper money. They may eventually be used alongside paper money.
Legitimacy is also one of the reasons why cryptocurrencies are growing in popularity. The anonymity, speed, and low fees that many offers make it very simple to launder money anonymously. This has made some people question whether cryptos should be banned completely since criminals might also use their legitimate use case.
Currently, regulations haven’t been imposed, so cryptos are relatively unregulated. This gives many experts great confidence in cryptocurrencies, resulting in the digital assets market growing rapidly over the past year. According to reports, it’s currently worth $300 billion! The value of these currencies will likely continue increasing as they become more accepted in the mainstream economy.
There is a downside, though, and that’s their volatility, making them risky for investors. This has led to some experts speculating that the cryptocurrency market will lose its value in 2022!
Even though cryptocurrencies are extremely volatile, they could still be a good investment for the right investor. This is especially true if you’re looking to diversify your portfolio and buy into something relatively safe due to its lack of regulation.
To make a better decision about cryptocurrencies, you need to know which ones are the most dangerous. In this article, we’re going to discuss some of the major reasons why cryptos might lose all their value in 2022 and what makes them “dangerous”.
The Most Dangerous Cryptocurrencies:
Before getting into specific currencies that might lose 80% or more of their value, you need to understand that the cryptocurrency market is volatile. As of this writing, there are over 1,400 types of cryptocurrencies, with new ones being created almost daily!
As a result, many currencies might become relatively worthless if they fail to gain any momentum in terms of popularity. This already occurred with many currencies worth a lot of money just a few months ago. Here are some of the cryptocurrencies that can be considered as dangerous:
- Bitcoin (BTC)
Bitcoin is the world’s most recognized cryptocurrency. It was founded in 2009, and it’s currently worth $43,771! Bitcoin uses blockchain technology, which allows transactions to be completed securely and anonymously.
With Bitcoin, no central authority governs transactions or stores of value. This means that Bitcoin owners are responsible for their funds. Bitcoin is proof of what decentralization can do for a currency when it comes to market value. This is also one of the reasons why many people are skeptical about its long-term potential.
One of the main concerns that many people have with Bitcoin is that it might lose all its momentum and stop being used. This would make the currency virtually worthless, which is why many experts are saying that it might lose 80% or more of its value by 2022!
Bitcoin’s transaction speeds are also quite slow compared to newer cryptocurrencies. Part of the reason why it’s taking so long for BTC to improve on this aspect is how secure it needs to be when it comes to processing transactions.
- Litecoin (LTC)
Litecoin is currently worth $136.49 per coin, making it the second most valuable cryptocurrency in the world. Litecoin is one of the top 10 cryptos in market capitalization and could eventually surpass Bitcoin in value.
Litecoin was founded a few years after Bitcoin, and it has a lot of similarities. This includes the fact that its blockchain is relatively secure and anonymous transactions.
Another great thing about Litecoin is that transaction fees are significantly lower compared to Bitcoin. In simple terms, this means that people can send funds from one location to another much faster if they use Litecoin.
One of the main concerns that many people have with Litecoin is losing its value as newer cryptocurrencies offer better features. This raises whether Litecoin can remain a top 10 cryptocurrency or not.
- Ethereum (ETH)
Ethereum is currently worth over $3,098.19, and it’s gaining a lot of traction. ETH has remained in the top 3 cryptocurrencies for over two years, which makes it highly valuable compared to other cryptos.
Unlike Bitcoin, Ethereum uses smart contracts, which allow transactions to be completed much more quickly. Additionally, Ethereum’s blockchain is quite secure and anonymous, making it an ideal currency for many investors.
One of the concerns that many people have with Ethereum is its scalability. Unlike Bitcoin, which can process around 7 transactions per second, Ethereum can only handle 15 transactions per second. This means it’s quite slow compared to newer currencies like EOS (which currently processes over 1,000 transactions per second).
The cryptocurrency market is a highly volatile one. Many currencies might be worth a lot of money now. Still, they could lose value in the future if they fail to attract new investors, improve their features, or find themselves being replaced by other digital assets.
This means that smart cryptocurrencies should always have options for expansion, and they should try to remain competitive in an ever-changing market. Therefore, it’s important for cryptocurrencies to constantly improve their features and look for new ways of adding value.
The reason why Bitcoin, Litecoin and Ethereum have remained popular over the years is that they have improved their technology quite a lot. They also offer their users a decent level of anonymity, security and a relatively quick transaction time which has helped them gain the trust of many investors.
The coins that will do well in 2022 could offer better features than BTC, LTC and ETH. This includes EOS, IOTA (MIOTA), and Steem (STEEM) projects.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.