Here is my best cryptocurrency to buy before the new year
By now, most investors have seen the explosive potential of investing in cryptocurrency. Bitcoin, the original cryptocurrency, has reached nearly $ 1,000 billion in market capitalization and gained over 6,000% in value over the past five years. Some of the more recent tokens have benefited from the crypto fever and recently posted almost outrageous gains, such as Shiba inuunprecedented gain of 64,000,000% over the past year. Relatively new cryptocurrency Solana (CRYPTO: SOL) has also been a big hit, gaining over 11,000% since December 2020. It also offers one of the fastest and most scalable models in cryptocurrency, so its popularity is more than just a hype. This is why Solana is my best cryptocurrency to buy before the new year.
What are the goals of cryptocurrency?
There are several reasons why cryptocurrency has caught the attention and money of investors. One of them is the potential to effect real change in global finance. Bitcoin has already made its mark and is now accepted as a means of payment across many channels while holding assets in a digital store of value. This is a truly mind-boggling and disruptive concept for first-world citizens who are used to currencies having value because they are backed by a government. The reverse is true for cryptocurrency; cryptocurrency is valuable because users give it a value, and it is not regulated by a central authority, such as a government or a bank.
Solana is a platform built on a decentralized blockchain that allows users to create dApps, or projects, cheaply and quickly. They operate on the basis of the basic concept of challenge, or decentralized finance, so it could be decentralized money exchanges, for example. It costs less than $ 0.01 per transaction and can perform 65,000 transactions per second (TPS). For comparison, Ethereum can only run 4000 TPS, although it is getting an upgrade to change that. It’s also designed for composability, which means developers can build apps on top of each other and different apps can âtalkâ to each other. These features make it a highly scalable model, and it’s no surprise that it is growing rapidly.
A meta-world of possibilities
Cryptocurrency has the power to really change the way we do business. Money can change hands instantly and without interference, and people around the world can conduct peer-to-peer transactions without a middleman.
There are also more applications for blockchain technology, beyond finance. NFTs, or non-fungible tokens, have become popular on the platform as developers have created blockchain-based NFT marketplaces, and virtual games are another example of blockchain-powered programs.
Animation is an interesting use of the platform. Render Network is a cryptocurrency focused on creating high computing power for artists to develop rich virtual worlds, a foundation of the metaverse. He recently decided to migrate to the Solana platform, where he can access speed and security for more efficient transactions and a better overall user experience. More and more people are seeing how Solana can help them develop and evolve, leading to widespread use and potential for so many different uses.
Is Solana’s value inflated?
Cryptocurrency is still new, and it’s developing more value as people see what it can do. Of course, the price increase is due to speculation, which makes it difficult to see the real value. Few investments can generate annual gains of 11,000%, and Solana might not follow that streak either. However, the fact that the hype has passed may give you more reasons to buy now. This is because as a cryptocurrency with wide possible use, it is likely to continue rather than disintegrate, which other cryptos may come closer to as their hype implodes. If we are approaching an explosion of crypto bubbles, you want to keep tokens with real world applications. And that’s why Solana gets my vote for crypto to buy before the new year.
This article represents the opinion of the author, who may disagree with the âofficialâ recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.