Top Cryptocurrencies performance

Bitcoin and Other Cryptocurrencies in 2020

Practically every market took a massive hit from the global coronavirus outbreak. This should not be surprising, as in major news events multiple assets tend to correlate with each other. But these downturns offer significant buying opportunities for 2020. All of these apply to Cryptocurrency Market as well

Bitcoin (BTC) Profit

Bitcoin is the oldest cryptocurrency in the world. It is the most well-known of all cryptocurrencies. It is so well-known that many people are talking about Bitcoin when they use the term “cryptocurrency.” This flagship role that Bitcoin has among cryptocurrencies means Bitcoin generally takes the brunt of news about the cryptocurrency space, whether good or bad. Consequently, Bitcoin has the highest market cap of any cryptocurrency in the world.

Cryptocurrencies in 2020
Bitcoin (BTC) in 2020

Sometime around May 12, the Bitcoin halving will take place. This reduces the block reward for miners to mine new blocks of Bitcoin by one half. This effectively decreases Bitcoin’s supply, instituting a scarcity that makes all Bitcoins more valuable. Due to this event, many are predicting a large increase in Bitcoin’s price for 2020. Over 87% of all the Bitcoin that will ever exist has already been mined. After the halving event, the decreased supply of Bitcoin will be met with the same demand as before, if not greater. This disequilibrium should theoretically result in a higher price for Bitcoin and help those invested in Bitcoin profit.

Ethereum (ETH) Projected Price

Ethereum was a direct hit from the coronavirus outbreak as enthusiasts who attended an Ethereum conference in Paris during the first week of March tested positive for the coronavirus.

Bitcoin and Other Cryptocurrencies
Ethereum: Hit by Coronavirus Outbreak

While Ether was down off its February 2020 highs of over $250, dropping to around $95 in mid-March, the coin has continued to rise in value. Technical traders have seen nothing but opportunity in this volatility. On March 24th, Ether experienced a 12% increase in 24 hours, proving that coronavirus volatility can still offer significant gains.

Bitcoin and Other Cryptocurrencies
Ethereum: 12% increase on March 24th (Source: Yahoo Finance)

With the advent of the coronavirus around the world, it is difficult to estimate an Ethereum projected price for the coming year. The COVID-19-fueled downturn represents a great opportunity to buy Ethereum at a lower price. And as the global situation with coronavirus improves, the fears that drove the sell-off will subside and the value of Ether should rebound nicely.

Also Read: Effects Of Coronavirus On The Cryptocurrency Market

Should I invest in Ripple (XRP)?

You might be wondering “why should I invest in Ripple?” Ripple’s team has a lot of experience in the finance industry and continues to foster relationships throughout the financial infrastructure of the entire world. Even in the midst of the coronavirus crisis, Ripple announced a partnership with Thai startup DeeMoney, to process transactions coming from South Korea, Indonesia, and Singapore into Thailand. Things like this are what drive the fundamental value of Ripple. Moreover, transferring funds from one currency to another through a digital currency like Ripple is much cheaper and more efficient than using the traditional financial system. Such currency conversions are very critical in areas like Asia, where there is a myriad of different currencies.

While the increasing volatility in the market has beaten Ripple down, uncertainty also has the potential to increase the demand for Ripple. Additionally, the more currencies fluctuate in value, whether from central bank interventions or volatility in the currency markets, the more Ripple’s product is invaluable as an easy and cheap way to transact in different currencies.

What is Tether (USDT) Cryptocurrency?

What is Tether cryptocurrency? Tether is a stablecoin pegged to the U.S. dollar. The value of Tether hovers around the value of $1. So why would you want to buy such a boring cryptocurrency?

Tether (USDT) in 2020

In the first quarter of 2020, stablecoins like Tether saw a record volume in transactions. USDT/ETH transactions accounted for almost 2/3rds of this. The reason is that as the coronavirus began to become a serious issue in the world, people were looking for a way to abandon the volatility and risk of cryptocurrencies like Bitcoin and Ether. By moving their funds to Tether, this is like moving your money to cash in the stock market. You won’t wake up one morning to find that Tether is now worth $2 and that you’ve doubled your money. But if you sell your Bitcoin for Tether and Bitcoin drops by half, you will have effectively done the same thing. So, Tether is not so much an investment in and of itself, but a tool to pause your investments when volatility rears its head in other cryptocurrency markets.

Bitcoin Cash (BCH) vs Bitcoin (BTC)

Bitcoin Cash has long been the most popular Bitcoin fork of them all. But Bitcoin SV (Satoshi’s Vision) is beginning to close on it. At the time of this writing, Bitcoin Cash has a market cap of around $4bn while Bitcoin SV sits at $3.4bn. Bitcoin Cash was occupied with holding off Bitcoin SV when the coronavirus outbreak hit.

Bitcoin Cash (BCH) in 2020

Bitcoin Cash has a number of advantages over Bitcoin that make it a more attractive cryptocurrency. As it relates to Bitcoin Cash vs Bitcoin, Bitcoin Cash fees are about 20% of those of Bitcoin, making it much cheaper to use Bitcoin Cash as an alternative. Bitcoin Cash’s blockchain features larger blocks than Bitcoin’s, meaning that it can theoretically handle more transactions per second. This is a big deal considering all the scalability issues that Bitcoin has experienced. While the price of Bitcoin Cash typically correlates highly with that of Bitcoin, these cheaper fees and the ability to handle more transactions offer a better value proposition than Bitcoin and economic instability could highlight these differences to make Bitcoin Cash a serious alternative.