In today’s era, Bitcoin has worth as it is a decentralized asset. Bitcoin possesses a stock ratio that gradually increases as time passes by. However, the story of altcoins is quite different. There are a number of myths related to altcoins that are not present with Bitcoin. Some of the altcoins lack innovation, while others are taking the world by storm. But, what are the factors producing the valuation of altcoins? More than 7000+ altcoins exist in the market. Which altcoins are valuable in 2021? In this article, let us explore that in detail.
The Valuation Of Altcoins In 2021
The first myth that comes with the altcoin valuation is technical innovation. Any altcoin HODLer will say he or she is HODLing because of the technical innovation that would push many things in the actual world. A few have actually given rise to reform previously. For example, Ethereum, Cardano, PolkaDot and Solana made people earn profits. But what about Dogecoin? Is there much innovation? Dogecoin was pushed further by Elon Musk, Snoop Dogg and other notable personalities. Dogecoin is known as a meme coin of Shiba Inu. One hope from this cryptocurrency is that it could be the next Bitcoin.
Three cryptos, Auroracoin, Feathercoin, and Steem, were supposed to offer innovation, but they forgot to gain traction. Some like them worked on altering the hashing algorithm, while others expanded the block size to dethrone Bitcoin. But even the forks of Bitcoin itself failed to do so. You should not expect any asset with millions of market cap to replace the largest cryptocurrency in the market. Technical innovation is a complete miss because the actual innovation discovers a market. No real users exist for altcoins. The worth for altcoins are getting added through tweets and speculations.
Because almost every altcoin is available as an open-source, modifying a few parameters and producing a new fork is easy as pie. When we talk about forks, the first two names that come before us are Litecoin and Bitcoin Cash. Together with Litecoin, one more coin came, and that coin was the Fairbrix coin. Both Litecoin and Fairbrix coin work on the same PoW algorithm. Both got launched in 2011, the same year. However, because Fairbrix coin was a clone and the premine was enormous, community members decided to go further with Litecoin only. Another similar case arose for Zclassic and Zcash.
Of course, when you look at the crypto market carefully, you find one or more clones in the name of innovation. Hundreds of coins were introduced in 2011 when Bitcoin was thought of as a bubble. Instead of gaining value, the coins launched that year failed miserably because they popped at prices as low as $1. Some cryptocurrencies we see getting successful nowadays took the advantage of rigorous marketing after 2013. Litecoin, XRP, Monero, Bitcoin Cash, Cardano and others existing in the list of top cryptocurrencies went successful because of marketing firstly, not innovation. In reality, they are still grappling.
Altcoins To Watch Out This Month
If you are ready to invest in altcoins, you should invest in the ones having some technical value. I am not going to talk about Ethereum, Litecoin, Monero, PolkaDot and Dogecoin because they are already in the business. It’s time to look beyond these and focus on Cardano, OMG Network, Helium and Vechain. Cardano is already up with 100% growth this August. So, no need to worry much about your investment in this altcoin. Cardano works on the research-driven feature, and many academics and scientists support it. Another cryptocurrency getting backed up these days is OMG Network.
OMG is climbing the ladder of success with the promise of digital payment space. Many banks are using the OMG network to offer solutions to their customers. OMG Network is a complete rival of Visa and other payment platforms. You can look for it in 2021. The next promising altcoin is Helium. It allows Wifi to meet the world of blockchains. Many internet companies could face problems with the popularity of Helium in the next coming years. The last cryptocurrency is Vechain. Vechain was up by 40% in August because of its capability to improve the supply chain. Spend on it.
It is still crucial to do your own research in altcoins because the valuation of altcoins might depend on other factors besides technical innovation and marketing strategy. We have now learnt that presently, only a few altcoins are worthy of investment. Bitcoin is undoubtedly the king. You cannot overlook its importance as a decentralized network. In case you have decided to choose altcoins, find altcoin news today by approaching a crypto platform sharing news, updates and price predictions. Smart investors and traders analyze every aspect before making a move in the market. Eventually, make no mistake with altcoins! Choose them wisely!