When it comes to cryptocurrency, your decision to invest should go beyond its existence as a relatively novel currency.The underlying importance of blockchain technology should be seen as an important criterion for the decision.As Bitcoin Wallet and other cryptocurrenciesexperience a significant fall in prices, this seems to be the right time for you to buy some crypto coins.Besides, the emphasisshould be on Tier 1 blockchain.Tier 1 is the blockchain that other blockchains depend on.
The Crypto Revolution
The current crypto revolution is something of a reminder of the early internet revolution.
It can be considered to be almost as big and as important in many ways.There is an important reason why you should be making crypto investments, howsoever small.And this reason is that it is a revolution taking place in the field of internet technology.
The traditional world of global megacaps controlling the technology future is now undergoing a sort of disruption.It is now facing a new challenge in the form of peer-to-peernetworking.
If this continues, the internet future looks to become decentralized.And if this is going to happen, it is important that everyone make some degree of investmentin blockchain technology.
Importance of Small Investments
If the early internet revolution must be quoted here, it is important to realize that majority of companies that invested in it faced massive losses or went bankrupt.
Amazon, eBay, Apple, and players not only survived, but they also thrived.Yahoo and AOL were major companies that couldn’t recover from the crashof 2000.
Similar developments are also expected in the crypto-sphere.There are going to be some massive winners and many digital coins are expected to disappear along the way.So, it is recommended to make small initial investments.If you own the blockchain that will become massive n the future, you could look forward to making a fortune.
Choosing the Right Blockchain Technology of Investment
When it comes to choosing crypto coins, it is highly recommended to select currencies on the Tier 1 platform.
Ethereum is currently the most-valued Tier 1 platform.
However, there are other blockchains that are much faster and have massive future potential.Before you invest in any cryptocurrency during this period of dip, it is important to know about the following:
– A large number of dApps have been developed on the Ethereum blockchain.
– Ethereum (ETH), similar to Bitcoin (BTC), doesn’t scale well.
– Like many other early blockchains, it depended on the proof of work (PoW) model to validate transactions.
– PoW is a very slow system for transactions.
– Most of the crypto ecosystem has now moved over to the proof of stake (PoS) model.
– PoS blockchains such as Solana and Fantom have grown at a fast rate.
– PoS blockchains are extremely fast and the transactions cost much less than their PoW counterparts.
Ethereum is at the top of Tier 1 platforms, it is the faster technology that has a greater future potential.
If Ethereum upgrades its technology, it can continuemaintaining its dominance.When choosing a blockchain platform for investment, it is recommended to consider the following two factors:
– Transactions per second
– Time to finality also referred to as speed per transaction
Solana experienced massive growth in 2021.Crypto investors were stunned by the capacity and speed of its blockchain.Fantom’s run was also similar.
Why You Should Invest Now?
Inflation has been rising significantly this year.The Federal Reservehas announced several times that it is planning to raise interest rates to overcome inflation.When this happens, the dollar will become stronger and alternative investments and coins are expected to become less appealing.
The geo-political instability in Eastern Europe has further affected the prices of Bitcoin and other cryptos.
All this makes this the right time for existing and new crypto investors to take the leap to get invested in these digital currencies.
While digital coins are expected to lose more value, this is seen only as a short-term impact of all the factors working together.Falling prices are not the only reason you should be focusing on alternative currencies.As mentioned above, it is important for you to step into this new world of internet technology– the blockchain..
