The world is spinning, and new events happen every day that no one thinks they can expect. The year 2020 in particular is characterized by a pandemic, crises and a lot of hustle and bustle in the global economy. What was considered impossible a few years ago is becoming more and more likely: Not fiat money but digital assets such as crypto currencies are increasingly regarded as a safe haven for investors. And especially in times of uncertainty, it is evident that people flee far away from banknotes and coins into other investments. Or even gamble – in crypto casinos. When mobile phones and watches switch to 2021 in a few months, the crypto market will probably look different again than it does now. Therefore, we dare to take a look into the crystal ball and try to predict the high potentials among the well-known cryptocurrencies in 2022.
The term altcoin basically describes all coins besides Bitcoin. Digital assets, which are technically tokens rather than coins, are also described with it. Everything that runs on the Ethereum blockchain is also cavorting here. Since Bitcoin was founded in 2008, more than 2,000 alternative cryptocurrencies have been deployed. In fact, many of these altcoins were launched as modified copies of Bitcoin, through a process known as hard fork. Although they have some similarities, each altcoin has its own functionalities – and that’s a good thing. The crypto versum is thus becoming more and more diverse and produces its own coins for different areas of application.
The altcoins forked by Bitcoin are often based on a similar mining process and the same proof-of-work consensus. However, there are several other cryptocurrencies that are experimenting with alternative methods to achieve consensus in distributed blockchain networks. The proof-of-stake consensus is the most common alternative to proof of work.
Have you read it many times, but never believed in it? We stick to it: The hour of altcoins will strike. And so really – in 2021. Our prediction is that Cardano (ADA) and IOTA (MIOTA) in particular will not only deliver on the coin table, but will also find areas of application in real life that make them shine. Already this year we were able to experience an upswing and suspect that it will continue. Cardano (ADA): The Next Generation Blockchain
Apart from fast transactions and anonymity, Cardano stands out from many other cryptocurrencies through its technology and is therefore the star of our forecast for the year 2021. Technologically, the Cardano platform is superior to Bitcoin, whose database technology (blockchain) belongs to the so-called first generation. Cardano, on the other hand, already meets the requirements of the third generation – one step ahead of Ethereum (ETH). One of the best coins in 2021 according to our forecast, runs on the proof-of-stake consensus mechanism. This means that it helps determine how a person can mine or validate certain transactions depending on the total number of ADA coins in their possession. In 2020, Cardano has fought its way up to the 6th place of the best cryptocurrencies and already presents some features for the year 2021: Smart Contracts and Native Assets will come. In addition, Cardano has already ushered in the Shelley era and participants in the network can now delegate their shares in Cardano’s cryptocurrency ADA. IOTA (MIOTA): Small coin, big!
Of course, the all-time classic IOTA must not be missing in the crypto forecast for the year 2021. The third generation blockchain paired with a real application coin will come out big again. IOTA (MIOTA) – known for its “Tangle” – has already been able to win several cooperations with well-known companies such as VW as a user and make up a few places on the coin table and trade on several well-known crypto exchanges. IOTA runs on the proof-of-work consensus mechanism, but should not be compared to the proof-of-work in a blockchain system. IOTA’s PoW is directly comparable to Hascash and has two functions: avoiding spam and hacker attacks. The increase came in the wake of the release of a new node software called Hornet version 0.4.0. This should bring significant improvements for the users of the software. It is said that in particular the performance has been improved and now advances in the user experience of the applications are made possible. The Bitcoin Family
As in any good family, it goes under and over here. Because the sibling pairs do not really behave in a familiar way – after all, they emerged from a crypto war. However, the price jumps of Bitcoin (BTC), Bitcoin Cash (BCH) and Bitcoin SV (BSV) are impressive and make you want more. Of course, these classics should not be missing in the forecast for 2021. Bitcoin (BTC) has paved the way for the crypto world and is still performing towards the sky in terms of price technology. This will not change next year in 2021 – and the pole position will remain clearly occupied. Bitcoin Cash and Bitcoin SV are in 5th and 6th place respectively and have also reaped some successes. In addition, we must not forget that the big halving 2020 took place with the three siblings. In the past, it could be observed that the price has jumped up again about a year after the artificial shortage. Maybe a big surprise is waiting for us in 2021… Algorand (ALGO): Unknown high-potential
Algorand (ALGO) is a secret star in the crypto sky, but has so far remained rather behind the scenes. The Algorand project aims to solve the trilemma of blockchain technology. The trilemma describes the agreement between scalability, security and decentralization. Algorand is a blockchain that runs without approval and is scalable. Algorand and the associated ALGO token provide users with a trusting platform that ensures immutability, shared consensus and decentralization. Everyone has the opportunity to submit new transactions and view complete transaction histories at an enormous speed.