The world is spinning, and new events happen every day that no one thinks to expect. The year 2020 in particular is characterized by pandemics, crises and a great deal of turmoil 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 cryptocurrencies are increasingly considered a safe haven for investors. And especially in times of uncertainty, it is becoming apparent that people are fleeing far away from bills and coins into other investments. Or even gamble – in crypto casinos. When cell phones and watches switch to 2021 in a few months, the crypto market will probably already look different than it does at the present time. Therefore, we dare to take a look into the crystal ball and try to predict the high-potentials among the well-known cryptocurrencies in 2021.
The year of the altcoins
The term Altcoin basically describes all coins besides Bitcoin. Digital assets that are technically tokens rather than coins are also described with it. This is also where everything running on the Ethereum blockchain cavorts. Since Bitcoin’s inception in 2008, more than 2,000 alternative cryptocurrencies have been used. In fact, many of these altcoins were launched as modified copies of Bitcoin, through a process known as a hard fork. Although they share some similarities, each altcoin has its own functionalities – and that’s a good thing. The crypto-verse is thus becoming more and more diverse, producing its own coins for different areas of application.
The altcoins that are forked by Bitcoin are often based on a similar mining process and the same proof-of-work consensus. However, there are several other cryptocurrencies experimenting with alternative methods to achieve consensus on distributed blockchain networks. Proof-of-stake consensus is the most common alternative to proof of work.
Read it many times before, but never believed it? We stick to our guns: the hour of the altcoins will strike. Our forecast 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 will make them shine. Already this year we have seen an upswing and suspect it will continue.
Cardano (ADA): The Next Generation Blockchain
Apart from fast transactions and anonymity, Cardano’s technology sets it apart from many other cryptocurrencies 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 – still 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 climbed its way up to 6th place among the best cryptocurrencies and is already introducing some features for 2021: Smart Contracts and Native Assets are coming. 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 time!
Of course, the all-time classic IOTA cannot be missing from the crypto forecast for 2021. The third-generation blockchain paired with a real application coin will make it big again. IOTA (MIOTA) – known for its “Tangle” – has already won quite a few collaborations with well-known companies like VW as users and made up a few places on the coin table as well as being traded on quite a few 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: Preventing spam and hacking attacks. The increase came in the wake of the release of a new Node software called Hornet version 0.4.0, which is said to bring significant improvements for users of the software. It is said that performance in particular has been improved as well as advances in the user experience of the applications are now enabled.
The Bitcoin family
As in every good family, it is all higgledy-piggledy here. Because the siblings do not really behave like a family – 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 us want more. Of course, these classics should not be missing from the forecast for 2021. Bitcoin (BTC) has paved the way for the crypto world and continues to perform skyward in terms of price. This will not change in the next year 2021 – and the pole position remains clearly occupied. Bitcoin Cash and Bitcoin SV are cavorting around in 5th and 6th place and have also taken some hits. Moreover, we must not forget that the big halving of 2020 took place for the three siblings. In the past, it could be observed that the price has jumped up again neatly about a year after the artificial shortage. Perhaps a decent surprise is waiting for us in 2021….
Algorand (ALGO): Unknown high potential
Algorand (ALGO) is a secret star in the crypto sky, but so far remained rather in the behind the scenes. The Algorand project aims to solve the blockchain technology trilemma. The trilemma circumscribes the agreement of scalability, security and decentralization. Algorand is a blockchain that runs permissionless and is scalable. Algorand and its associated ALGO token provide users with a trusted platform that ensures immutability, shared consensus, and decentralization. Anyone has the ability to submit new transactions and view complete transaction histories, all at tremendous speed.