Long-term investment is the key to sustainable returns. And while not all assets are designed for lasting success, the Bitcoin (BTC 0.21%) and Terra (LUNA 1.64%) do the trick. Let’s explore a few reasons why these cryptocurrencies are ideal for long-term investors.
Never underestimate the value of a dominant brand. Worth an impressive $853 billion, bitcoin accounts for 42% of the entire cryptocurrency market. And while it doesn’t offer the features of newer networks, its pioneering edge and mainstream adoption give it a lasting advantage.
With a transaction capacity of seven per second and limited support for complex smart contracts (self-executing programs stored on a blockchain), Bitcoin is not the most technically advanced network. To compare, his rival Ethereum can handle 15 transactions per second, while Solana has 50,000 – and both host dApps (decentralized applications), which are programs using smart contracts to offer services on the blockchain.
That said, bitcoin was the first public cryptocurrency when it launched in 2009. And that gives it brand recognition that newer coins can’t replicate. According to blockchain directory Cryptwerk, bitcoin is the most widely accepted cryptocurrency, with 7,855 merchants accepting it as payment. Ethereum comes second, with only 4,068 merchants. Bitcoin developers also have a habit of updating the network to meet its challenges.
In November, Bitcoin enabled Taproot, an upgrade that has boosted privacy and could help the network accommodate more complex smart contracts, which are self-executing programs stored on a blockchain (although these are not as complex as smart contracts in ‘Ethereum). Updates like Taproot could be a first step in helping Bitcoin bridge the gap with newer blockchains, though more changes will be needed.
Terra is a blockchain network designed to host stablecoins (cryptocurrency tokens pegged to real-world currencies). This unique asset seems built to stand the test of time due to its highly specialized niche and tremendous real-world utility for the cryptocurrency community.
While cryptocurrencies are a great way for investors to diversify their portfolios and have greater financial privacy, they come with a big downside: volatility. Terra aims to solve this problem by offering a suite of stablecoinswhich are decentralized digital tokens pegged to the value of real-world currencies like US Dollars or Euros.
The Terra platform has two native tokens : Terra, which is its stablecoin wallet, and LUNA, which is a separate token designed to absorb the volatility of stablecoins – which means that LUNA grows according to demand, giving investors a great way to bet on the adoption of the Terra platform. With a market cap of $32 billion, Terra is already the 9th largest cryptocurrency by market cap. And it is ready to continue its success thanks to its very practical use.
Bet on sustainable benefits
Cryptocurrencies have been in a bear market this year, with the combined market value dropping 9% year-to-date to $2 trillion. That said, the sector has a history of rebounding from similar declines over the long term. And Bitcoin and Terra could contribute to this rebound. As the largest and most established asset, bitcoin is probably the safest bet. But the utility potential of Terra in the real world is also too good to ignore.
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The 2 best cryptocurrencies of the moment to buy and never to sell – The ₿log
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