Which Cryptocurrency Will Be Popular in 2022?

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Cryptocurrency
Cryptocurrency

Although cryptocurrency is now mainstream, its origins are still in the digital Wild West. In 2009, a programmer (or group of programmers) under the pseudonym Satoshi Nakamoto created a financial and technological system that allows for peer-to-peer transactions without banks or mediators. The system is called Bitcoin, and it relies on a network of computers to generate and maintain ledgers of every transaction ever made using the currency.

The system works because a network of computers verifies every transaction. These devices accept and process information into a blockchain—a giant shared ledger open to anyone on the Internet. The computers double-check each other’s work and make sure no one tries to cheat by spending Bitcoins more than once, forging entries, or tampering with the verification process. It’s an ingenious system—but also one plagued by problems from day one.

Which Crypto Is Headed for a Major Breakout?

If you’re considering buying cryptocurrencies, you might wonder which ones will provide the most significant return by 2022. Although bitcoin has been the famous option in recent years, it might not be the best regarding more significant potential profits. Better choices might be smaller coins that big-name investors like Warren Buffett haven’t already pumped up.

Ethereum 

Ethereum (ETH) is different from bitcoin. Ethereum has made significant strides since it was first introduced in 2015. 

Ethereum is also the foundation of decentralized finance, or the idea that financial transactions can be conducted without a third party, like a bank or credit card company. Cryptocurrencies built on Ethereum — ERC20 tokens — are doing well this year. There are currently over 1,000 of these tokens, with an estimated market cap of almost $12 billion.

Binance Coin 

Binance is a cryptocurrency exchange that has quickly become the largest in the world. It has been able to do this by focusing on one thing: speed. By putting its servers worldwide and having them process trades in milliseconds, Binance can consistently offer speedy response times, especially during periods of high volume.

The company has already burned over 38 million BNB tokens and expects to burn 50% of its maximum supply eventually. Binance is the largest crypto exchange in terms of trading volumes. 

Tether (USDT)

Tether, the most popular and most heavily traded stablecoin (a type of digital asset pegged to the value of a fiat currency), has been trading below its dollar peg since mid-May. While it has since rebounded by more than 10 percent, tether’s stability remains in question — and this week, a former employee claimed that tether’s reserves are less than half of what they’re supposed to be.

The second difference is that tether is designed to be much less volatile than bitcoin and ether hence the name “stablecoin.” The two are usually at the same price but can sometimes differ significantly — 1 tether = $1.

Decentraland (MANA)

Decentraland belongs to the rapidly expanding virtual reality world, but it stands apart from its competitors (the Oculus Rift and HTC Vive) in several ways. Users can access it via PCs, laptops, smartphones, or VR headsets like the Samsung Gear VR and Google Daydream. It’s also more than just a video game: users can build their virtual land and create realities using essential coding tools.

The tokens in Decentraland are called MANA, and they can be used to purchase land for your avatar to roam around in and interact with other players. If you have content that other people would find enjoyable, you can earn MANA for providing it to them. If you have ideas for new games that you can build in Decentraland, you can also make MANA for them.

Algorand (ALGO)

For a good reason, one of the biggest names in the crypto space is Algorand. According to Securities.io, the blockchain-based platform has hundreds of companies using it, including financial institutions like Vanguard and Citadel and even the government of El Salvador. The Marshall Islands even designated Algorand as its official blockchain for a new digital currency called Sovereign (SOV).

ALGO coin runs on the Algorand network, with a maximum total supply of 10 billion. You can also use the coin to pay transaction fees and participate in staking.

 RenderToken (RNDR)

RenderToken works on the blockchain, a decentralized network of computers where each node (a computer connected to the network) stores an identical copy of a database of information. The blockchain runs on tokens—cryptocurrencies like Bitcoin or Ether—which are awarded prizes in contests that allow computers to compete against one another.

The platform’s native token, RNDR, is used by artists and creative studios to purchase GPU processing time from miners on the network who have extra bandwidth to spare on their graphics cards. In this way, RenderToken allows GPU miners to monetize their hardware while simultaneously creating a demand for GPUs from those who want to use them for 3D rendering but don’t have one available.

What to Look for in the Crypto Game Changer

With so many investors flocking to cryptocurrency, knowing which new coin might rise in value is tricky. Many experts say the popularity of digital assets stems from a crucial change in how the public views these assets.