The next big cryptocurrency – Introduction
In 2020, BTC was considered the most-profitable cryptocurrency. No wonder: In May 2020, it had an expressive increase of +300%.
The numbers are impressive and attract our attention. For this reason, thousands of traders and participants around the world want to know: What will be the next big cryptocurrency?
After all, to gain money it is essential to identify this new digital currency before it becomes popular.
This article contains the most relevant information that can help those who are fascinated in crypto to learn/find out more interesting clues about it. Enjoy it!
Economic proposal
The primary value proposition of cryptocurrencies is that they enable the storage and transfer of economic value without any need for a third party, such as a governmental agency or a financial company.
It is important to remember that digital currencies such as Bitcoin (BTC) and ECC have been created to solve real problems e.g.: Double spend dilemma.
Basically, it occurs when a blockchain network is disrupted and cryptocurrency is essentially stolen. In other words, when the same unit of a digital currency is fraudulently spent more than one time. This is often because digital files can be easily copied.
Before Satoshi Nakamoto’s famous publication, titled: Bitcoin: A Peer-to-Peer Electronic Cash System, a large number of developers were involved in solving this issue. Nonetheless, they were unsuccessful.
Nakamoto’s study describes the BTC basis when explaining the concept of decentralized cryptocurrency.
In a few words, this is what we call the economic value proposition of cryptocurrency. It is about how digital currencies are able to solve problems in the real economy.
Benefits for the crypto users
In general, cryptocurrencies are also associated with a lot of advantages. For example, traders can make different types of crypto transactions while using digital payments methods. It works the exact same way as a credit or debit card.
One of the advantages of buying cryptocurrency involves its price appreciation potential. For instance, consider the global outlook economy where Central Banks around the world issue fiat money to balance public accounts. As a result, the inflation rate will rise and consequently consumers purchasing power decreases.
However, this won’t be a problem for those who maintain part of their income in cryptocurrencies, once digital currencies were designed to counter the harms of inflation (including cryptos with finite supply e.g: BTC and ECC). In fact, multiple Institutional Investors – company or organization that invests money on behalf of clients or members – are investing in crypto as a store of value.
Types of development
Type of development of a cryptocurrency refers to the method of developers’ work. Usually, each crypto has its own community, which defines parameters such as:
- What will be the transaction validation methods?
- What are the key features of cryptocurrency?
- What security measures should be adopted to invest in digital currency?
- What is the commercial project behind cryptocurrency?
Obviously, all these aspects will define the cryptocurrency and its price appreciation potential. Therefore, it is extremely crucial to evaluate these issues as well as the technical and operational capacity of the community to recognize the potential of the new cryptocurrency.
Did you like to learn why it is important to know the next cryptocurrency? For more information check out our blog and don’t forget to read: “Are cryptocurrencies safe?”
