The cryptocurrency space is bubbling with new cryptocurrencies and crazy investors who are willing to invest their money in any currency related in any way to the word “crypto”.
Many unknown digital currencies are making their way to the front. One of these emerging cryptocurrency is Ripple (XRP) that made headlines in mid-December after being highly adopted by Asians. The cryptocurrency surged 35,500 percent last year and now trades at $3.45.
A number of unknown cryptocurrencies came into the spotlight after doubling in value last year. We still don’t know what this year holds for them but in the light of the past year, it seems like these new entries might give a hard time to the early and well-settled members of the market.
Such ‘unknown’ cryptocurrencies are rapidly turning into ‘well-known’ ones as they are being widely adopted by Asian countries especially South Korea, Japan and Hong Kong. Due to this easy adoption advantage, new startups are going to the venture world and launching their own cryptocurrencies. So, the crypto-market that once contained only half a dozen cryptocurrencies is now overrun by more than thousand different currencies making it worth $650 billion.
As the number of new cryptocurrencies including Ripple and Stellar has doubled in value, there is obviously a clear possibility for other coins to double or maybe quadruple. This is the reason why investors are attracted to these low-priced coins that can jump on the surging bandwagon anytime.
Another reason for this popular surge in the cryptocurrency adoption is the ‘unpopular’ loses that many have witnessed thanks to cryptocurrencies. Many discuss their loses in businesses on press forums but no one has ever revealed how much money they’ve lost because of cryptocurrency. Only the profits are being discussed. This boosts the confidence of upcoming investors, who then think of cryptocurrency as a money-doubling machine.
Coins from startups like Tron and China’s NEO also started the year with a 30 percent surge. Tron trades at 6 cents while NEO at $100 per coin.
NEO is a Chinese blockchain platform and a rival of Ethereum, world’s second-largest cryptocurrency.
Ethereum was developed by a now millionaire Russian tech expert Vitalik Buterin. The cryptocurrency has a market valuation of $84.12 billion, about 15 percent more than Brazil’s 60 years old state-controlled oil company Petrobras.
Bitcoin is worth way more, it is equivalent to Chevron’s while Ripple’s valuation is near Goldman Sachs’. These digital currencies are equal in valuation to companies that have hard assets worth ‘real money’.
Another unknown Ethereum rival Cardano is expected to double this year, as predicted by Alexey Ivanov, the fund manager at Polynom Crypto Capital in Moscow. A coin of Cardano is worth $1.14 and had been up to $500 percent since its ICO in 2017.
“Once Cardano is added to a regulated platform, it can double,” he said.
Ethereum was up 17 percent on Tuesday, 2nd January and Ivanov think it is because of the efforts it’s taking out to improve transaction speed.
American hedge fund manager behind the Specialized Research and Investment Group in Moscow, David Herne, like Waves. It is a Russian developed open-sourced blockchain platform that works with the Moscow Stock Exchange on a program that would enable investors to trade in cryptocurrency. The coin has a billion dollar market capitalization and goes for $13.21 currently.
Buying cryptocurrency is nothing like picking a stock on E-Trade. E-Trade is an online stock brokerage firm that acts as an intermediary between the New York Stock Exchange and an investor. However, there is no such thing in the crypto world. The crypto world has many bigger and smaller exchanges that carry different cryptocurrencies.
The year 2018 will undoubtedly be a year to notice new cryptocurrencies issued by different companies and startups, that would definitely be low cost and most likely profitable.
“Call it a bubble if you like, but can you really afford to stay out of cryptocurrencies?” wrote Naeem Aslam, chief market strategist for ThinkMarkets, London.
“Cryptomania was unquestionably the major talking point of 2017. The question is: can you make money while still thinking there is a bubble? Giving a straight answer: if you can afford to lose an amount which won’t make any meaningful difference in your life, then by all means, dabble. An average American aged between 20-64 earns approximately $27-50K a year. In the grand scheme of things, $100 invested in cryptocurrency has a minuscule probability to impact anyone dramatically. The rewards are undoubtedly there,” Naeem posted on Forbes.
Although the arrival of different unknown cryptocurrencies might be convenient for new investors, it is surely not a good sign for the bigger cryptocurrencies. Bitcoin, the largest cryptocurrency that accounted for 80 percent of all crypto trading in 2017, had fallen to its lowest level in five years. The cryptocurrency now accounts for 36 percent of the total value of all digital currencies with a market cap of $233.6 billion.