7 Cryptocurrency Prices and Predictions and Which to Buy
Cryptocurrencies are changing the way we think about money and it’s not just the bitcoin. In this video, I’ll show you how to find cryptocurrency prices on seven cryptocurrencies and then reveal price predictions on each including the Ethereum, Litecoin and Stablecoins.
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Cryptocurrencies as This Years's Asset Class
Nation, cryptocurrencies are the asset class this year but most investors are only looking at part of the picture, that bitcoin price and returns. In fact, bitcoin hasn’t been your best investment over the last year and might not be going forward!
So in this video, I want to apply the same value analysis we did in last week’s video for bitcoin price predictions. I’ll show you seven cryptocurrencies, how each works and the fundamentals behind them. We’ll look at returns and crypto prices for each and then whether you should invest your money!
The video is in partnership with BlockFi, a crypto account for investors where you can earn up to 8.6% interest on your cryptocurrencies. No hidden fees, no minimum balance, just a high rate on your crypto. You also get no fee trading of Bitcoin, Ethereum, Litecoin and Stablecoins and can borrow up to half the value on your account at rates as low as 4.5%.
I just opened an account and am in the process of transferring my cryptocurrency investments there because…well, who wouldn’t want that extra return through the high-interest account? It’s really easy to use and only BlockFi lets you earn interest while you invest in crypto. For a limited time, you can also earn a crypto bonus of up to $250 when you open an account. I’ll leave a link in the video description but don’t wait because BlockFi is waitlisting the first bitcoin credit card, an upcoming partnership with Visa where you’ll in bitcoin an unlimited 1.5% back on all purchases plus a $250 sign-up bonus if you spend $3,000 in the first three months and up to $800 in additional rewards.
Now do understand, BlockFi isn’t a bank so you don’t get the FDIC insurance you do with a regular bank but it does comply with state and federal regulations and uses industry-leading protection for customer assets.
So last week, I showed you two ways to value bitcoin and we came to a price estimate of between $94,000 to $190,000 over the next few years.
Promising Cryptocurrencies Aside From Bitcoin
But bitcoin isn’t the only cryptocurrency. In fact, it might not even be the best investment or the best for your needs. According to researcher IDC, more than $12 billion will be spent by companies to adopt blockchain processes by next year and that’s going to be a positive catalyst for a lot of these coins.
Companies from Overstock to Microsoft, Intuit and Dish Network are already accepting payments in cryptocurrencies and because some of these aren’t as popular as bitcoin, they could be an undiscovered opportunity for investors.
Next to bitcoin, Ethereum is the best known among other cryptos and actually the Ethereum platform has more developers than any other blockchain. That’s giving it a lead as businesses adopt the technology and it helped the crypto jump to a 580% return over the last year.
Of the top 50 companies tracked by Forbes that are adopting blockchain technology in their business, 32 have chosen Ethereum. JP Morgan built its digital token, the JPM coin, using the Ethereum platform to facilitate the $6 trillion it moves around the world on a daily basis.
Amazon Web Services has also adopted the ETH platform for a new open-blockchain standard in a service to help businesses adopt the blockchain technology.
In all, the Enterprise Ethereum Alliance, has signed 150 organizations including Cisco Systems, Microsoft and Mastercard to the largest open-source blockchain initiative in the world. This scale and lead in applications development should drive the coin’s value.
Two more huge developments in Ethereum are the launch of it’s 2.0 version which will make transactions faster and more secure and trading of futures contracts on the Chicago Mercantile Exchange which will give it better liquidity.
Now the Ether coin isn’t limited like bitcoin. There are currently just over 100 million Ether versus about 21 million bitcoin, so that explains some of the price difference. The Ether crypto trades for just over $1,500 each versus nearly $50,000 for bitcoin but based on the network effect, I think it should be much higher compared to the more popular crypto. We can see active addresses for Ethereum have reached about 750,000 which is just below the 900,000 unique bitcoin addresses.
That would justify a market cap of nearly half a trillion, or about three-times the current price for each Ether…and that’s just the current network of users. With the greater business adoption of the crypto and increase in users over the next few years, I think price for Ethereum goes to seven or eight thousand each.
Now for the other cryptocurrency platforms, besides Ethereum and Bitcoin, there isn’t quite as much institutional or business usage flowing into the cryptos so that’s going to be a hurdle on their prices but they’re also much less widely known so one tweet can send them surging.
Litecoin has been called the ‘silver’ to bitcoin’s ‘gold’ and is one of the largest coins by market cap. The Litecoin was developed using the core code from bitcoin so they’re very similar technically, but Litecoin allows for faster block approval time, from 10 minutes down to two-and-a-half, which gives it higher scalability and lower transaction fees compared to bitcoin.
Also like bitcoin, the Litecoin supply is limited, there will only be 84 million created. The developers reasoned that since Litecoin transactions are four-times faster than bitcoin, the network should have four-times the tokens.
Now there are quite a few less active addresses for Litecoin, around 192,000 and since there are four times the tokens, that’s a factor in the price, right around $171 each right now. But the network has spiked from about 65,000 addresses in the last six months and has taken the tokens up 178% and a market cap of $11.3 billion. The network alone justifies a market cap three-times that and if it can get to 250,000 addresses consistently, I think we could see the Litecoin price at a thousand-dollars in the next few years.
Our next crypto is a replacement for the challenges in gold investment, Paxos Gold, symbol PAXG.
Physical Gold vs. Digitalized Gold
Now we’ve talked about investing in gold on the channel, whether through physical gold, the miners or that gold ETF…but there are problems with each of these. Physical gold might work in jewelry and it’s a great store of value but you’re not going to be carrying that gold brick around and at $1,800 an ounce, it can be hard for regular investors to get exposure.
The SPDR gold shares, ticker GLD, give you that digital exposure but at an annual management cost and even here, you’ll need $161 for a single share.
So Paxos developed a digitized gold on the Ethereum blockchain, tokens backed by real gold, easily tradeable and with no management fee. The minimum purchase is for 0.01 ounces so under $18 at the current market price.
Pax gold is instantly redeemable for physical delivery and regulated by the New York Department of Financial Services. It’s fully-collateralized by physical gold at one troy ounce to each PAXG token. In fact, you can use your Ethereum address on the PAXG token at the Paxos website to see the actual serial number, weighting and purity of the bar associated with the token.
Now since this crypto is fully backed by gold, the price is going to follow that of the metal…which hasn’t been great this year as interest rates increased but if we do get a return of inflation later in the year, gold prices could head higher fast!
Rise of Stablecoins
Our next cryptocurrencies here are the stablecoins including the USDC, USDT, GUSD and the PAX.
Just like the gold crypto, stablecoins were created to fix a problem, the volatility in other cryptocurrencies. The volatility or the price movement from day to day is a huge problem for anyone that either wants to accept crypto as a payment or just wants to use it as a store of value.
Just look at this chart of daily price returns with the bitcoin price per dollar in black and the US dollar to the Canadian in yellow. The exchange value of the dollar barely budges, maybe a quarter of a percent a day at the extremes and it hugs that unchanged line. But look at the day-to-day price change in bitcoin! How can any retailer be expected to accept bitcoin for payment if they might lose 2% or more by the time they convert it back to dollars?
It’s great when the price of bitcoin or other cryptos are rising but let’s face it, as a reliable store of value, it kinda sucks.
Stablecoins were created to solve that need for a digital form of payment with the stability of fiat currencies by tying the value of the crypto to one or more of the fiats. A reserve of the fiat, so a dollar reserve is set up to collateralize the stablecoin like we saw with the gold coin.
Other stablecoins are collateralized by other cryptocurrencies and still a third type, known as algorithmic stablecoins, aren’t collateralized but are either burned or created to keep the coin’s value in line with the target but these two aren’t used as much as the currency collateralized type.
4 Stablecoins That Track the US Dollar
Here there are four Stablecoins that track the US dollar and are most widely used. The Tether, USDT, launched in 2014 is one of the oldest and most popular. It’s used in forex trading between exchanges to take advantage of immediate price differences.
The US Coin, USDC, was launched in 2018 and is jointly managed by crypto firms Circle and Coinbase. It’s like Tether with the tokens pegged to the US dollar. Here you’ve also got the Gemini dollar, GUSD, and the Paxos Standard Token, PAX, both of which also track the dollar.
And you see in the price charts of these, that stability around the value of the dollar means they aren’t as good as an investment but rather that store of value or for transaction needs.