A cryptocurrency is a virtual form of currency that uses cryptography and is difficult to counterfeit because of this security feature. It ensures security while making financial transactions, controls the creation of additional units, and verifies the transfer of assets from one source to another. Cryptocurrencies use a decentralized control system, dissimilar to the centralized digital currency and central banking systems. The decentralized control works using a distributed ledger technology, like blockchain.
Presently, there are 4,000 cryptocurrencies in existence and the field is ever-expanding. With all the benefits that cryptocurrencies provide, it is now more than ever that people have become enthusiastic about investing in the cryptocurrency world. However, picking the most profitable ones amongst the crowd can become a mighty task. Thus, here is a list of the five best cryptocurrencies to invest in 2021!
Bitcoin is the first known cryptocurrency to come into existence. With being an ancient member of the cryptocurrency world, Bitcoin’s power, market dominance, and importance have not faltered in the cryptocurrency ecosystem. Bitcoin holds 65% of the market cap. As of March 2021, a single bitcoin was valued at over $60,000, only proving how high it stands in the market. An investment made in this cryptocurrency can yield you back the highest profit. Prediction goes that bitcoin will hit the mark of $100,000 by the end of 2021.
Thus, even if the value of bitcoin dips, the chances of it beginning still on the top of the market are unbeatable. Moreover, traders consistently benefit from high liquidity from bitcoins irrespective of how the rest of the market performs. You can even have a look at some of the best bitcoin alternatives.
Talking about the most influential cryptocurrency in the market, it has to be Ethereum. If you are someone looking to build upon a blockchain, there is what you should invest in as its blockchain gives a wide variety of applications. It stands at the front of the DeFi revolution making it the second-largest cryptocurrency in terms of market capitalization and volume. Ethereum’s market cap increased by 60% back in September 2020 and is presently showing a good trend in the market. It is a smart investment option if you are trying your hand at the cryptocurrency market for the first time.
The start of ADA in the crypto-world was slow but steady. Presently, it is one of the most promising cheap cryptocurrencies which one can invest in. The boost in ADA’s popularity has come after its ability to create smart contracts on its network. By the beginning of 2021, ADA was a massive shift in its market cap from being $0.182 on January 1 to $1.45 on February 27. Presently, its range keeps shifting from $1 to $1.4 in the market.
Litecoin can be called an early spinoff of bitcoin, before Bitcoin Cash (BCH) came into existence, around October 2011. It is critically analysed that Litecoin is almost identical to Bitcoin. If Bitcoin is valued in terms of gold in the crypto-industry then Litecoin is the silver. And just like Bitcoin, Litecoin is capped at 84 million, with approximately 75% already mined. As for how beneficial it is to invest in Litecoin, well, it surged by more than 630% from its lowest level in 2020, which brought its total market cap to more than $12 billion. Thus, making it the 9th largest cryptocurrency in the world. Predictions go that its value could move beyond $200, which is a promising insight for one to invest in this cryptocurrency.
Ripple is ISC licensed and is a real-time gross settlement, currency exchange, remittance type form of cryptocurrency. It is the second-largest coin ranked by market capitalization. At the start of 2020, the cryptocurrency did face a fall but has risen steadily thereafter. Additionally, several financial giants like JP Morgan, HSBC and MoneyGram have shown their faith in Ripple by investing in it.
The reason why Ripple might be the best cryptocurrency to invest in, in 2021 is that it offers to facilitate a global transition away from the traditional financial system to one using blockchain at an institutional level. Additionally, it has a lot of potential, solid technology and a rapidly expanding network.
Hopefully, these valuable insights will help you determine and narrow down the cryptocurrency in which you want to invest. As the growth of cryptocurrency is inevitable and imminent, it is a wise choice to invest in it sooner rather than later.
This Is What Jack Dorsey’s Cryptic ‘705742’ Tweet Might Mean
A simple but cryptic tweet from Jack Dorsey, Founder and CEO of Twitter and payments firm Square, has sparked a debate about the meaning of the post, and whether the well-known Bitcoin (BTC) advocate has any BTC-related plans that have yet to be announced.
As pointed out by many users replying to the thread, the tweet, saying just “705742,” likely refers to a block number on the Bitcoin blockchain. A block with that number was indeed mined on Tuesday at 20:14 UTC, but it is still unknown what else is special about the particular block.
Been updating block explorer for the last 7 minutes— Katie The Russian (@KatieTheRussian) October 19, 2021
Twitter users were quick to pull up the bitcoin block explorer to see if there was anything unusual about block 705742, which at that point had yet to be mined. However, little out of the ordinary could be found.
Others, meanwhile, joked that the number could be Dorsey’s “[end of year] price target for bitcoin,” or that it could be somehow related to “Moscow time,” – bitcoin slang for the value of 1 USD in satoshis.
Speculating further, one user on Reddit suggested that the block number could be the first block to be mined by a new mining system that Dorsey has proposed.
“Maybe the first block that Square mined as part of their [research & development] for a potential public mining platform,” the user wrote, before adding that it looks like the wallet that received the block reward already has both in and outbound transactions worth almost USD 2bn. “Seems like a plausible volume for Square/Cashapp,” the user added.
However, according to various Bitcoin blockchain explorers, the block in question included 2,787 transactions and was actually mined by the BTC.com pool. Moreover, the block was mined almost an hour after the tweet was published.
In either case, as reported, the latest tweet from the Twitter CEO followed another thread from last Friday, where Dorsey said that Square is considering building “a bitcoin mining system based on custom silicon and open source.”
“Mining needs to be more distributed” and it “should be as easy as plugging a rig into a power source,” Dorsey wrote, asking his followers what the biggest barriers are for people who want to run miners.
Facebook Finally Launches Digital Currency Wallet Novi but Senators Want to Close This Project
Amid the Facebook Novi launch, some federal legislators want the social media giant to discontinue the project.
Facebook Inc (NASDAQ: FB) has launched the pilot phase of its digital currency wallet Novi in the US and Guatemala using stablecoin Paxos. Facebook finally launches Novi and is going with Paxos’ USDP after its own native crypto Diem failed to secure regulatory approval. Furthermore, the social media giant heralded the pilot launch in a blog post on Tuesday.
Novi’s pilot launch is more than two years after it was first announced. The wallet will facilitate fast, secure, and free fund transfers between users via mobile smartphone apps. However, all users must register with government-issued identification.
For now, Paxos’ stablecoin will serve as Novi’s transactional currency, while powerhouse exchange Coinbase will provide custodial services. According to David Marcus, head of Facebook’s Novi wallet, this pilot phase will, “test core feature functions, and operational capabilities in customer care and compliance.” Furthermore, it will test the viability of stablecoins as a valid and sustainable form of payment.
Facebook Launches Novi to the Disapproval of US Congress
Amid the Facebook Novi launch, some federal legislators are calling for the social media giant to discontinue the project. Senate Democrats addressed a letter to Facebook CEO Mark Zuckerberg on Tuesday questioning the company’s credibility with crypto. In their own words, Facebook “cannot be trusted to manage cryptocurrency”. The senators base this conviction on the social media company’s past inadequacies in handling cyber risks and keeping consumers protected. Signed by Senators Brian Schatz, Sherrod Brown, Elizabeth Warren, and others, the letter read:
“Facebook is once again pursuing digital currency plans on an aggressive timeline and has already launched a pilot for a payments infrastructure network, even though these plans are incompatible with the actual financial regulatory landscape — not only for Diem specifically, but also for stablecoins in general.”
Part of the Congress letter to Facebook further states:
“We urge you to immediately discontinue your Novi pilot and to commit that you will not bring Diem to market.”
Facebook responded to the Senators’ query through a spokesperson for Novi, suggesting that the company would address the issues raised therein.
Facebook Has a Long-Running History with Federal Lawmakers over Its Operational Practices
In recent times, Zuckerberg and Facebook have locked horns more frequently with Congress. Back in 2019, Congress summoned the Facebook CEO to provide testimony on the Diem project (then called Libra). Zuckerberg’s summoning was the culmination of weeks of tussling, between Facebook and the federal lawmakers, who were skeptical of the project. In addition, the Zuckerberg hearing came just a year after Facebook’s Cambridge Analytica scandal. This may have been another reason federal legislators were agitated against the company.
Another recent red flag raised against Facebook was earlier this month from whistleblower Frances Haugen. Haugen appeared before the Senate Commerce Committee to testify on the threat Facebook posed to users. Some of these include the usage of Facebook itself and other affiliated services, such as photo and video-sharing behemoth Instagram.
Australian Parliamentary Committee Sets Guidelines to Give Crypto Industry a Big Push
Australia’s parliamentary committee on crypto-assets aims to bring concrete regulatory and policy changes to give a major push to the crypto industry in the country. The committee believes Australia needs a robust policy and regulatory changes to help it compete against the global leaders. The said committee released a draft report on 20th October outlining the need for encouraging investors and ensuring protection against frauds.
Some of the key recommendations in the draft report include,
- Establishing a market licensing regime for Digital Currency Exchanges, including capital adequacy, auditing, and responsible person tests under the Treasury portfolio
- Establishing a custody or depository regime for digital assets with minimum standards under the Treasury portfolio
- Conducting a token mapping exercise to determine the best way to characterize the various types of digital asset tokens in Australia
Andrew Bragg, a senator from the conservative Liberal Party and chair of the committee said that the recommendations in the draft would help Australia set a new regulatory framework for the highly popular crypto industry which will, in turn, help Australia compete against the likes of Singapore and UK. He said,
“The draft recommendations are a big push to detail a cryptocurrency framework for Australia, which would allow us to compete with the U.K. and Singapore,”
Crypto Market Has Become Too Big to Ignore
The Crypto market was primarily seen as a speculative ecosystem for the most past of its life, but that perception has changed quite fast over the past year. Governments have now realized that the crypto market has become too big to ignore as a fad. This is why the likes of El Salvador have made Bitcoin a legal tender, while Paraguay passed a law to legalize the use of Bitcoin and Ethereum in the financial market.
The United States’s policymakers who were adamant about keeping the crypto market at bay have finally approved the first-ever Bitcoin Futures ETF. This shows how the sentiment around the crypto market has changed as it became a $2.5 trillion industry again in October.