The third Bitcoin halving took place in May 2020. But before we delve into the cryptos to buy after the last halving, let’s understand why crypto assets have a bright future as an investment.
Traditionally, Bitcoin halving is associated with bullish trends witnessed across the entire crypto space. Crypto prices, like other commodities, are determined by the market forces of supply and demand. If the supply dips while the demand remains constant, then prices should increase.
During the last Bitcoin halving, the number of miner rewards dropped from 12.5 Bitcoins to 6.25 Bitcoins. According to crypto market analysts, this event catalyzed a bullish trend with supply expected to rise by 2.5% in 2020, as Bloomberg earlier reported. In 2021, supply is expected to rise by less than 2%.
With this in mind, here are the best cryptos to buy after the third Bitcoin halving event.
If you’re wondering whether Bitcoin (BTC) is still a worthy investment in 2020, the answer is, “Yes, it is!”
Bitcoin is still the market leader and a benchmark standard upon which every emerging crypto is judged. Here are three good reasons for buying BTC after the halving event.
Cryptocurrencies are expected to go mainstream, not only on Wall Street. Bitcoin has a limited circulating supply of around 18 million coins. This implies that its price is likely to increase by a significant margin in the future. Its scarcity is one of the factors that drive Bitcoin price higher.
Additionally, BTC has a huge market capitalization, eight times bigger ($121 billion) than Ethereum, the second-best digital currency. Bitcoin still boasts the highest daily trading volume, which makes it more easily tradable.
Besides, when cryptocurrency becomes accepted worldwide, regulation will destroy a big chunk of the crypto community. Many scam tokens will phase out, giving space and demand for more stable digital assets. Bitcoin is the pioneer cryptocurrency and the most trusted in the crypto space. This makes it an ideal investment for 2020 and beyond.
Ripple’s XRP is one of the altcoins positioned for reaping big gains in 2020. The company utilizes blockchain technology to facilitate money transfer between banks and payment providers. Crypto asset exchanges and corporations can also use XRP to transfer money globally. Ripple is, therefore, a key infrastructure behind cross-border crypto payments.
As cryptocurrencies gain more worldwide acceptance, Ripple is onboarding more customers, including banks. The recent partnership with the National Bank of Egypt is just one example. As more banks and payment providers join the Ripple network, the demand is set to rise. This will eventually boost the XRP price.
Dash cryptocurrency came out as the leading asset after the Coronavirus-instigated market crash in March. As of March 26, the digital asset was up 65.20%. Dash embraces strong fundamentals and a massive technical background. It also has a low circulating supply, which is a crucial factor to consider when investing in cryptocurrency. With just about 9.4 million coins in circulation, Dash ranks 19 as one of the world’s best cryptocurrencies, according to CoinMarketCap.
Basic Attention Token (BAT)
BAT is one of the interesting cryptocurrencies to watch in 2020. This digital asset is expected to reap big gains based on its previous price trends. The driving force behind the BAT coin is quite simple. It focuses on the advertising industry, which, as currently constituted, is quite broken and misaligned.
In the advertising industry, the incentives for both advertisers and users are not properly shared. They seem to run in opposite directions. Advertisers want their ads watched while consumers want to skip the ads.
BAT seeks to align the digital advertising industry so that the incentives will be matched between the advertisers and consumers.
To achieve that goal, users will receive payment in BAT to watch digital ads in the Brave browser, which means that consumers will be incentivized to watch the ads. The goal is to have more users to watch the ads to enable the advertisers to sell more of their products or to achieve brand awareness. This positions BAT as a smart business model that will increase in value.
Besides, as cryptocurrencies head for a mainstream consumer adoption, their demand increases. Dash is likely to gain more traction based on its model for compensating users. This makes it one of the explosive cryptos to buy this year.
Monero (XRM) is another promising digital asset to buy after the third Bitcoin halving. Monero is special for three main reasons. Firstly, it embraces privacy, which is the sole intent of the crypto invention. XRM is the world’s most established privacy coin, which you can use to make anonymous transactions.
Its non-traceability feature attracts many users who would like to transact without any third-party intervention. Secondly, Monero has a low supply of around 17 million coins. This means it is scarce, and its demand is likely to increase. Thirdly, its current double-digit price of around $50 makes it an established model for investment.
Ultimately, this is our list for the most promising cryptos to buy this year, especially after the third Bitcoin halving. As usual, the crypto market remains volatile, so you should expect some up or down swings in the assets. It’s advisable to read the whitepaper, verify the circulating supply, and analyze price trends before you buy any digital asset.
Featured image: coinrevolution.com