1. Bitcoin (BTC)
Bitcoin is one the greatest investment opportunities of our generation. Many investors compare Bitcoin to gold as a store of value as it increases in relative worth against both the US dollar and gold. Top companies such as Microsoft Corp. (MSFT), Overstock.com (OSTK) and AT&T (T) accept bitcoin as payment, demonstrating a sign of broader adoption.
This cryptocurrency is first in terms of market capitalization and has been the front runner since 2009. Bitcoin will continue to dominate for years to come because of its idea and users’ trust. In addition, Bitcoin proved to be resistant to any significant market crash.
“Unlike fiat currencies, Bitcoin cannot be hyperinflated. Its blockchain is coded so that there will never be more than 21 million bitcoins in existence, and there are approximately 2.8 million left to mine,” says Steve Ehrlich, CEO and co-founder at Voyager Digital. The price of this crypto asset should rise as demand outstrips supply, and total supply is capped.
In 2020, the economy took a major hit due to the coronavirus pandemic. The price of Bitcoin went down to $4,700 in March, however managed to rise to $24,085 (ATH) on December 19. “This year is probably going to end at this $22,000 to $25,000 range [for bitcoin] and next year $30,000 to $35,000 and then we will break out to these new high levels that you are talking about,” Celsius Network co-founder and CEO Alexi Mashinsky told Yahoo Finance when asked if bitcoin was on a collision course to reach $500,000.
2. Ethereum (ETH)
Ethereum has also been performing well against the US dollar. Despite the negative performance of many altcoins, ETH was strong throughout 2020. In December, the price of Ethereum hit a 52 week high of $673.
There are many reasons to be excited about Ethereum in the coming year. First, is the expansion into the DeFi space with Chainlink, Wrapped Bitcion, Maker and other tokens build on the Ethereum blockchain. Second, is the launch of Ethereum 2.0 which launched in early December. The users are excited about the transition to the Proof-of-Stake algorithm and Shard chains, which provides a scalability mechanism that drastically improves the throughput of the Ethereum blockchain.
Ethereum is a strong investment because of it’s staying power with Bitcoin. The silver cryptocurrency has high liquidity, so you won’t have to worry about selling and purchasing it.
The coin started the year with the price of only $132 on January 1, then eleven months later, its price went up by nearly 5x, currently sitting at $650. While ETH is far from its ATH, it has made significant achievements towards getting there.
Simon Dedic, Co-Founder of Blockfyre and Managing Partner at Moonrock Capital sees a bright, long-term future for Ethereum and estimates the asset could someday be worth as much as $9,000 per ETH token.
3. Ripple (XRP)
Ripple is one of the longest standing top 10 cryptocurrencies, right next to Bitcoin and Ethereum. XRP provides fast, inexpensive, and reliable digital transactions. The developers aim their sights on large financial corporations, therefore, Ripple acts as a bridge between traditional banking systems and digital payment technology.
This year, XRP showed strong stability: In March, the cryptocurrency didn’t suffer as much as other altcoins. Ultimately, Ripple’s value depends on future partnerships and continued success. Moreover, Ripple launched the Line of Credit business lending program. The beta version of the service operates on the RippleNet network and is available to a limited number of customers.
William Meade, a former Goldman Sachs employee and billionaire hedge fund manager, made his first crypto purchase this year, buying XRP and expecting it to soar in value in the near term: “I made my first crypto purchase ever this week Ripple (XRP). If Bitcoin goes back to its all-time highs then XRP should as well and that would be a 15 bagger 1,500 per cent.”
Based on his estimates, such an increase would take XRP all the way up to $3 in the foreseeable future.