By this point, most of us know one way or the other how we feel about cryptocurrency investment. The arguments are well-rehearsed, and there are merits on either side of the divide. However, it just takes one look at the financial pages of any newspaper, one glance at the screen on any financial news channel, or a few moments eavesdropping in the right cafes and diners to hear and see that crypto is going to be a major topic for a while to come.
That being the case, it makes sense to be aware of the developments in the crypto sphere, and ideally to be ahead of them if possible. It’s true that, for the moment, cryptocurrency markets don’t behave exactly like legacy investments, and that there is a lot of noise out there when it comes to predictions. However, there are a lot of opinions with plenty of weight behind them, and it would be a good idea to be aware of what those in the know are expecting for the rest of 2021. So let’s look at some of the key expectations abroad right now.
Ethereum could overtake Bitcoin
Bitcoin has for so long been the king of the crypto world that there is a term for any cryptocurrency that isn’t BTC. The leading “altcoin” of the moment, Ethereum, is impressing many with its durability even while Bitcoin itself has been shaky. Experts are now saying that 2021 could be the year where the unimaginable happens, and another coin takes over as the highest-value cryptocurrency. Upgrades that have been in the pipeline for some time, designed to make Ethereum more efficient, could see the leading altcoin gain in value to the point where it leaves behind the big daddy of them all – and this could happen within months.
The Musk Effect will continue, for now
Investing in cryptocurrency has been shown to reward smart investment, patient management and the use of resources such as DexStrats to guide strategic investment. However, there is no ignoring the way that prices rise when a certain meme-obsessed billionaire comments on a specific coin. Dogecoin may have been started as a joke parodying the durability of online-focused investment, but every time Elon Musk says it’s the wave of the future, its price rises. Paying attention to the currencies he talks up – and waiting for him to get bored and start talking them down – may be a decent guide for potential investments.
Ripple falling out of favor, may struggle to regain it
For as long as there are cryptocurrencies, Bitcoin will be talked about with intrigue and speculation. As Ethereum mounts its attack on the leading light, it too will take up column inches. That may indicate definitively bad news for any other pretender to the throne, as there only seems to be room at the top for one king and one would-be usurper. As other coins have enjoyed price rises of late, the once-vaunted Ripple (XRP) coin has struggled to make ground, and experts have characterised its long-term prospects as bearish. Of course, other coins have had their deaths predicted in the past and then surged back to gain significantly. For now, though, Ripple isn’t attracting any of the right kind of attention.