2 Cryptos That Can Double Your Money | The Motley Fool

Leading cryptocurrencies exploded in value from the begin of 2020 through the inaugural half of 2021. Bitcoin ( BTC 0.77 % ) and Ethereum ( ETH 0.76 % ) have climbed 918 % and 1,940 %, respectively, over the last three years, but they have cooled off along with the banal market in holocene months .
Growing interest from institutional investors and the high volume of transactions that Bitcoin and Ethereum are handling every day means these cryptos could reach new highs. here ‘s why the top two cryptocurrencies could double your money .
Bitcoin Price Chart

Bitcoin

Bitcoin is down 30 % over the last year. At its peak price, Bitcoin had a market cap of slightly over $ 1.2 trillion. Its market value is now $ 774 billion, or 42 % of the measure of all cryptocurrencies, so a lot of money needs to move bet on into Bitcoin for it to return to its previous high watermark — and exceed it — in orderliness to double from its current level.

But I believe that ‘s very accomplishable. Despite Bitcoin ‘s correlation with the stock market recently, it ‘s increasingly being used as an alternative asset like gold. Wall Street banks are starting to expand their coverage of Bitcoin, which signals cryptocurrency is here to stay .

It ‘s estimated that 140 million people own some Bitcoin. That far outstrips the current provide of 18.99 million coins, with the soap add set at 21 million. The high sake in Bitcoin coupled with a fix provision provides a natural catalyst for higher prices over time .
Of run, it ‘s impossible to pinpoint when Bitcoin will return to its previous high and double over in value. But consider there ‘s more than $ 10 trillion of ball-shaped wealth sitting in aureate. As Wall Street banks expand coverage, that will only help more option assets shift to “ digital gold ” and lift the price of Bitcoin with higher demand .
A person feeling happy while working on a computer at home.

Ethereum

While Bitcoin appeals to investors for its gold-like fixed provision, Ethereum is attractive for its growing utility value. It ‘s a community-run blockchain that lets people without access to banks borrow money, send payments, and play games. It besides supports the growing marketplace for tokenized art collectibles, or non-fungible tokens ( NFTs ).

The growth of the NFT market — the fastest-growing space within the digital economy — explains Ethereum ‘s sharp get up over the last few years. Since the end of 2020, Ethereum is up 292 % compared to Bitcoin ‘s return of 40 %. The NFT grocery store is expected to reach $ 80 billion in rate by 2025, according to Jefferies, or more than double the estimate of $ 35 billion for 2022 .
The price of ETH hit an all-time high of $ 4,867 in 2021, but it presently trades at about $ 2,840. Some investors are worry about increasing rival in the NFT distance from the Solana blockchain, but Ethereum ‘s network silent commands an 80 % parcel of the NFT market .
Solana has an advantage with its lower transaction fees, but Ethereum ‘s upcoming upgrade to its platform could help neutralize that advantage. If all goes well with the upgrade, analysts believe the price of ETH could reach $ 4,000 to $ 8,000 near term.

Given Ethereum ‘s lead in the fastest-growing space of the digital economy, I would give it the benefit of the doubt for now. But note that the competition in the NFT market makes ETH a higher-risk cryptocurrency to buy right nowadays than Bitcoin. I own some Bitcoin and believe it ‘s the best room to gain exposure to the cryptocurrency commercialize, plainly because it ‘s the most widely held and has mainstream appeal. These factors provide a floor for demand that should support a higher price over the long condition .

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