Digital currencies have a future in 2025
For more than a decade, no asset class has proven more capable of guaranteeing investors wealth than stocks. In recent years, however, this stock market position has seen some competition due to the amazing increases in the cryptocurrency space. The S&P 500, for example, jumped over 100% between March 2020 and the end of 2021, and the total value of all cryptocurrencies rose from $141 billion to $2.2 trillion over the same time frame. In addition to all these huge gains, cryptocurrency projects offer competitive advantages, which means that the size of the cryptocurrency market could quadruple or possibly more in the next few years. Through this article, you will learn about a list of three digital currencies with a future of 2025 that you can invest in.
What makes Algorand (CRYPTO: ALGO) first in the list of digital currencies with a future of 2025 is the role it can play in the blockchain space. Algorand offers no shortage of advantages that some other cryptocurrencies might offer such as speed and scalability. The network was handling 1162 transactions per second (TPS) and offered a final block of 4.36 seconds as of December 2021. This means files or data may be being sent. Or funds and verify their authenticity in less than five seconds. You can compare this to the two most popular networks Bitcoin and Ethereum, which can only handle 7 TPS and 13 TPS.
Algorand also makes a great stride when it comes to network security. There is potential for cryptocurrency holders to negatively influence the network with traditional PoS consensus, but with Algorand’s pure PoS consensus mechanism, ALGO holders are randomly and secretly chosen to vote on proposals and propose blocks, making it highly unlikely that smaller players will be able to disrupt the network.
Algorand also aims to bridge the compatibility gap of unique blockchain networks with each other, making decentralized finance (DeFi) mainstream for businesses and consumers, as well as focusing on interoperability.
With over 16,000 of the aforementioned cryptocurrencies in existence, exclusivity and a superior network are essential to success, and what makes IOTA a 2025 cryptocurrency list is that it combines both of these qualities, plus its potential to rise 300% or more by the middle of the decade.
IOTA does not depend on the blockchain due to the slowness and high fees of the latter, but what distinguishes it is the “Tangle”, which is a directed cyclic graph that requires each new transaction to confirm at least two previous transactions. This is like someone looking back at their ancestry and having the ability to see the oldest member of the family coming into contact with new lineages over several decades or centuries.
Another reason to get excited about the potential of IOTA is its existing partnership with Dell Technologies. IOTA works with Dell to analyze the credibility of data before it is used by an application. Getting recognition from brand-name companies is a good sign for IOTA.
Avalanche provides a clear competitive advantage and good compatibility compared to most other blockchain projects, which makes it a strong contender in the list of cryptocurrencies with a future of 2025.
As mentioned earlier, speed and scalability are two important elements in the world of digital currencies. With existing payment infrastructure taking up to a week to validate and settle cross-border payments, it is imperative that blockchain projects provide improvements to entice businesses and consumers towards them.
According to the developers, the Avalanche network is capable of handling over 4,500 TPS and completing transactions in less than 2 seconds. This is much faster than the current payment infrastructure and even other smart contract-enabled networks, such as Bitcoin and Ethereum.
The Avalanche Network is also expected to attract decentralized application (dApp) developers in large numbers. This is because it owns an Ethereum Virtual Machine (EVM) running on its own blockchain, which is the software developers use when creating dApps on the Ethereum blockchain. In other words, developers have the opportunity to use the same software on a faster, cheaper, and more scalable network than Ethereum.
Disclaimer: The content of this article is for informational purposes only. The information provided should absolutely not be considered as investment advice or a recommendation. No warranty is made, express or implied, as to the accuracy of the information or data contained herein. Users of this article agree that Money Secrets does not accept responsibility for any of their investment decisions. Not every investment or trading strategy is suitable for anyone. See the risk warning statement.