(Via ZEXPR) It comes as no surprise that cryptocurrency investors are already looking for their next golden goose. You see the exploding value of Bitcoin was a valuable lesson for them.
Bitcoin, the world’s currently biggest and best-known cryptocurrency has truly managed to change the game of trading. Its ever-changing graph has oftentimes left investors of the crypto giant perplexed.
As of Sunday, it recorded an 83.7% high from its lowest value this year of $27,734. This brings about the currency’s peak to $50,947.97, adding $2,043.31 from its previous close, which is a 4.18% rise.
The Investment Center analyst Troy Huot indulges in the cryptocurrency world to better understand the dynamics of how another strong play could present a solid competition to Bitcoin.
Trading On Similar Grounds
Bitcoin opened up a vortex for the cryptocurrency world which is currently dealing with Cardano’s internal cryptocurrency called ADA. This digital currency uses the same blockchain technology as that of Bitcoin and happens to record its transactions on a single ledge itself – much like Bitcoin.
ADA operates on the same principle as other cryptocurrencies and any user from around the world can use it as a secure exchange of value.
Its current price as of March 2021 is valued at $1.39 per token- however, you could have bought this digital coin for just 20 cents per token in 2020.
ADA has been on the watchlist of many brokerage firms, with trading multi-brokerage company eToro reporting on the cryptocurrency’s rise of 157% in trading within the last month itself. This allowed it to hit a high of $1.45 within the last weekend of February.
eToro’s very own cryptocurrency expert Simon Peters reiterated how investors are already looking for the alternative to Bitcoin in order to get in on the next big boom.
But is that a smart play to be clued-in towards the unknown rather than keeping the focus on what is currently working in the market? Peters seems to get the bigger picture with his perspective on the cryptocurrency world.
“The market is evolving. And yes, rather than focusing solely on Bitcoin and Ethereum, where the investors can only own a fraction of the coin, we are looking at the increasing demand for coins priced like the Bitcoin and Ethereum from a few years ago,” remarked Peters.
Peters further looked into the inclination towards these cheaper investments and how investing in cheaper tokens like Cardano’s ADA, Tron, and IOTA could make this year’s hunt for the next Bitcoin intense.
The Investment Center analyst, Troy Huot, reiterates Peter’s thoughts, “All of these other coins are gaining their own respective followings and each of them is currently valued around the $1 mark. Guess we will have to wait to find out which one speeds off faster.”
While it might be easier to get in the trend for cryptocurrency investment but the greater market values make it a tough competition.
Peters saw the best way to understand these cryptocurrencies through their acceptance. These digital coins gain credibility once large companies allow trading with them – much like how Bitcoin gained legitimacy for itself.
The Investment Center analyst Troy Huot signifies the growth of the major cryptocurrencies currently taking over the market – Bitcoin and Ethereum.
Huot remarks, ”Take a look at how busy February has been for both Bitcoin and Ethereum. Both of their prices have skyrocketed ever since the start of the year.”
Peters on the other hand quipped on their volatility by stating that “while there is volatility, the wider adoption story continues to power both crypto assets.”
He further spoke of how the crypt adoption by others in the trading world is just a matter of when but not if, for these assets are soon going to be more widely used in our day to day lives.
When it comes to the volatility, he expects it to stay with them for a bit longer as “the crypt journey is still very much at the beginning.”
The Reason Bitcoin Is Still “It”
If you are still wondering about why Bitcoin still continues to explode, well, it all comes back to one simple reason – legitimacy.
The once doubted currency is slowly gaining credibility and is no longer seen as the domain of cybercriminals for it is not tied down to anyone nation, government or state.
The cryptocurrency is being largely accepted as an alternative currency by many companies and one recent factor that has worked in its favour has been the nod from the one-time world’s richest man Elon Musk.
Musk announced earlier this year that his auto company will be accepting Bitcoin as a payment for its cars, and this has been a great contributor in supporting the currency’s legitimacy as a valid form of trade.
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