By 2025, which cryptocurrencies are worth investing in?
Whether you’re new to crypto or a seasoned veteran, the big question is which cryptocurrencies are worth investing in by 2025?
Bitcoin (BTC)
If you can afford to invest in just one cryptocurrency, let it be Bitcoin.
Created in 2009 by the anonymous Satoshi Nakamoto (author of Bitcoin’s white paper), Bitcoin is the first, the largest, the most-valued, and most widely-known cryptocurrency on the market.
Bitcoin’s mission is to revolutionize the finance industry by eliminating the need for centralized banks and to replace inflationary fiat currency backed by governments. Since its creation, however, it has become more of a precious digital asset than a currency used for simple payments.
In brief, Bitcoin is a decentralized digital currency that can be sent peer-to-peer over the Internet using blockchain distributed ledger technology. Bitcoin has a number of interesting use cases, particularly as a hedge against fiat currency inflation. In the future, Bitcoin evangelists hope to see a world where BTC is used as a daily means of payment.
Because of Bitcoin’s unique cryptographic blockchain technology, it does not require any centralized intermediaries, banks, or administrators and runs via a collection of computers, called nodes, that maintain the network.
While no one knows who Satoshi Nakamoto is, this anonymity is consistent with the Bitcoin ethos of privacy and security.
Bitcoin is trustworthy due to the fact that no single entity can disrupt its system. Since Bitcoin’s total circulating supply is finite and mining rewards are periodically reduced by halving, Bitcoin’s inflation rate will decrease and its supply will eventually become fixed. This means that its price has the potential to skyrocket.
With institutional and corporate investment into BTC ramping up, countries like El Salvador (and possibly Chile in the near future) buying BTC, and the mining industry booming, the currency looks extremely bullish.
You can buy Bitcoin at any centralized exchange such as Binance or Coinbase, or on a decentralized exchange (DEX) like Uniswap.
Ethereum (ETH)
The next no-brainer crypto investment by 2025 is Ethereum, the second-largest cryptocurrency by market cap. Originally created in 2013 by programmer Vitalik Buterin, Ethereum is a decentralized, open source blockchain with smart contract functionality. Its whitepaper can be read here. Crowdfunded from the beginning and launched in 2015, Ethereum is a platform for smart-contract based decentralized applications (DApps), which provide an array of decentralized finance (DeFi) services.
DApps built on the Ethereum network allow users to borrow cryptocurrencies, lend at interest, or exchange currencies without the need for trust (as smart contracts are automated and ensure that the contract is fulfilled or else invalidated for both parties).
Ethereum also has a unique ecosystem that allows for blockchains to be built on top of the Ethereum network, thus offering greater functionality. All blockchains and their tokens living on the Ethereum network must pay ETH as a gas (or transaction) fee to Ethereum miners.
Currently, DeFi is set back due to the extremely high price of these transaction or gas fees. However, this will change soon. In 2022, Ethereum plans to shift from a Proof of Work (PoW) to a Proof of Stake (PoS) system, which should lower gas fees (not having to pay mining fees) and thereby increase the system’s DeFi utility, not to mention becoming more attractive to eco-friendly investors.
After the fork, some expect ETH’s price to be very unpredictable, and in the short term could even go down due to fear, uncertainty, and doubt (FUD). But if there is indeed greater utility, you can bet that Ethereum will be the go-to chain for the future of DeFi applications. Ethereum has a strong community of investors and developers on Reddit, Telegram, and Discord, and its token can be bought on any exchange.
Filecoin (FIL)
Filecoin is a cryptocurrency project founded by computer scientist and CEO of Protocol Labs Juan Benet. Launched in October 2020, Filecoin was one of the first data storage tokens to be listed on major exchanges like Coinbase.
The Filecoin network powers a decentralized data storage protocol built on the Interplanetary File System (IPFS), a peer-to-peer network that enables the secure and efficient storage and encryption of files using blockchain technology. Filecoin is built on top of IPFS and incentivizes individuals to provide storage to the network.
FIL mining refers to the act of providing data storage and is not energy-intensive. Furthermore, because FIL is needed as collateral to open up storage space and is given as a reward for providing real utility, FIL as an investment is not as speculative as meme coins like Dogecoin (DOGE) or Shiba Ina Token (SHIB).
We at Cloud Rush USA believe that Filecoin has enormous potential for growth in the coming years by providing inexpensive and decentralized data storage, and helping pave the way for Web 3.0.
Filecoin is also making some big moves. In November 2021, the team announced the creation of the Filecoin Virtual Machine (FVM), which will introduce a layer of on-chain computations on top of their base data storage and retrieval layer. The FVM integrates smart contract functionality and introduces interoperability with other blockchains like Ethereum to store NFTs and Metaverse digital assets in a trustless manner. FVM will open up a realm of possibilities with how Web 3.0 data is stored.
The Filecoin community is also robust, with activity on Reddit, Twitter, and Telegram from all over the world, and it can be purchased on both centralized and decentralized exchanges. Instead of buying on an exchange, providing data storage space on the Filecoin network can be a great way to stack up on FIL and profit from exchange margins. The problem is that when providing data storage, the device has to be online and connected 24/7 or else you can incur substantial penalties.
While these are just a few examples of popular cryptocurrencies, there are thousands available out there, and more being created each day. As always, do your due diligence and be sure you understand the risks associated with cryptocurrency trading before investing.
Good luck!
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