After a very strong year for all cryptocurrencies, the forecasts for the coins are overturning. While some still believe in the fivefold increase of a crypto price within ten years, critical voices are increasing after the recent slump in January 2022 and ask: Which cryptocurrency has a future? Some compare the current market with the situation of 1929. At that time, the economic boom always flushed new money into the financial market – until the bubble burst. COMPUTER BILD has taken a close look at the most important coins and explained which cryptocurrency has a future and which coin is mainly supported by the hype.
Bitcoin: Does the cryptocurrency have a future?
The oldest, largest and most valuable cryptocurrency today is the undisputed number one. Technically, however, the Bitcoin protocol notices its pioneering role. With its proof-of-work mechanism for validating transactions on the blockchain, the currency has earned a reputation as a climate pest in recent years – both mining and sending Bitcoin is resource-intensive. Meanwhile, there are many other crypto currencies that rely on an efficient mechanism. In real-world application, Ethereum, Cardano, Solana and other coins have overtaken Bitcoin.
Whether Bitcoin has a future as a cryptocurrency or is replaced by other coins depends on whether and how Bitcoin can overcome these challenges. However, the high market capitalization and the entry of various banks and investment companies into Bitcoin speak for him.
Stablecoins: Future of Digital Payments?
From the original idea of a decentralized means of payment, the Bitcoin has largely said goodbye today. Instead, this feature is increasingly being taken over by stablecoins, which provide the stability and efficiency needed for financial transactions. Stablecoins are backed by fiat currencies or other values and thus always offer a relatively stable rate around one US dollar.
DeFi applications, i.e. cryptocurrencies that are used in the context of decentralized financial products, will continue to change the financial landscape regardless of the fate of individual crypto currencies. Stablecoins such as Tether or the USD Coin therefore have a good chance of continuing to play an important role in the future of cryptocurrencies. Whether this trend will already affect the cryptocurrency future in 2022 remains to be seen. For investors, stablecoins are hardly interesting – at least without other currencies with a certain volatility.
Transfers on the blockchain with Ripple
Despite advancing digitalization, classic SEPA transfers today often take a whole day. Ripple has started to change this state. With the Ripple protocol, the developers want to establish a worldwide digital decentralized transfer system in the future, in which every transaction is carried out securely and quickly. For some years now, however, the ambitious goal has been overshadowed by a legal dispute with the US Securities and Exchange Commission. If the developers lose, they not only have to expect high fines – the future of the Ripple Coin is at stake. Because the SEC wants to treat the Ripple Coin like a security and subject it to the same regulatory conditions. Whether this cryptocurrency has a future depends crucially on the outcome of the lawsuit. A verdict is expected in 2022.
Smart Contracts: Where do Ethereum, Cardano and Solana stand in 2030?
Smart contracts are digital, smart contracts that do not require an intermediary instance and are automatically executed on the blockchain as soon as predefined conditions are met. Contracts are concluded everywhere and the majority of them define a simple exchange of goods/services and money – for example, leases, credit agreements or insurance policies. The use of smart contracts can therefore potentially achieve large efficiency gains.
In addition to Ethereum , other major cryptocurrencies such as Solana (SOL) or Cardano (ADA) are also focusing on smart contracts. Which cryptocurrency will prevail has not yet been decided. Technically, Ethereum is currently still inferior to its competitors. Only with the planned update to Ethereum 2.0 will the blockchain make the switch to an efficient proof-of-stake mechanism, which is already standard for the other coins.
Will interest rate reversal & regulation end the crypto boom?
Only slowly are the countries of the world catching up with the technical development and beginning to deal with the crypto market. States are currently dealing with the phenomenon in very different ways:
- China completely banned cryptocurrency trading for locals as early as 2021. The background is the development of its own cryptocurrency – the digital yuan. By centralizing digital money flows, the Chinese government would not only gain complete insight into all transactions, but also control. How the global crypto market will deal with a digital yuan is unclear. In any case, the ban on Bitcoin & Co. caused strong setbacks.
- From Russia, at the end of 2021/beginning of 2022, considerations were also made to ban crypto currencies. Currently (beginning of February) there are signs of regulation rather than a ban. News is also coming from the USA that can be groundbreaking for the cryptocurrency Future 2030. The US Federal Reserve plans to gradually raise the key interest rate over the next few months. If these announcements come true, it would be a departure from monetary policy since the 2011 financial crisis, and rising interest rates would change the situation on the capital market. Other asset classes are becoming more attractive compared to cryptocurrencies. The result: The demand for Bitcoin, Ethereum & Co. is falling.
- El Salvador, on the other hand, takes a different approach. President Nakib Bukele is a supporter of Bitcoin and has introduced the cryptocurrency as official legal tender. In addition, the head of state speculates publicly with state funds. Currently, El Salvador owns about 1,800 Bitcoin with a value of almost 600 million euros. However, the cryptocurrency future is hardly affected by these activities. The market capitalization of Bitcoin is over 650 billion euros.
Conclusion: Which cryptocurrency has a future?
There is no clear answer to the question “Which cryptocurrency has a future?” Blockchain technology has long since taken root in all industries and will continue to play an important role both in the financial world and in everyday life. Even in 2030, there will probably still be cryptocurrencies. However, this does not necessarily mean that prices continue to rise. In the economy, crypto currencies have so far found applications that can guarantee the fastest and cheapest possible transactions at a stable price – the most valuable cryptocurrency is not one of them.
After some countries want to take a restrictive path in terms of Bitcoin, the USA is now in the focus of investors. How it shapes its monetary policy will not only significantly influence the cryptocurrency Future 2022, but also the cryptocurrency Future 2030.
Costs, Options & Co.: The Depot Comparison
If you want to buy an ETF or shares, you need a securities account. A comparison of the most important providers can be found in the table below, further detailed information in the depot comparison.
Which trading venues are available?
Number of tradable stocks, ETFs, funds, savings plans, crypto assets
Shares trading at Lang & Schwarz over the weekend
What is the minimum order volume?
Design reminiscent of social media platforms with social trading as a core feature
around 2,000 shares commission-free; Spread fees 0.09 percent; Conversion fees, as it is traded in US dollars; Withdrawal fee five US dollars
no custody fees; only those who do not log in for twelve months pay 10 US dollars per month
there are 17 trading venues for equities, such as US stock exchanges Nasdaq (511 shares) and NYSE (825), Frankfurt (119), London (367)
2,000 stocks, many ETFs, more stocks and many other products than derivatives, more than 30 crypto assets