The top one hundred digital currencies collectively control the lion’s share of the asset class’s market capitalization. After all, Bitcoin and Ethereum account for roughly 66% of the nearly $2.208 trillion in market capitalization as of April 14. With 9,231 tokens growing, the lower-tier tokens face a bleak future.
Every day, value hunters are on the lookout for the next Bitcoin. It will be a significant task to discover the next token that can appreciate from six cents to over $65,000 in just a decade. In 2021, a $100 investment in Bitcoin in 2010 will be worth $100 million. A payout of this magnitude will ensure that the level of buying remains robust in the following months and years.
Meanwhile, I observe people insert 100 dollars into slot machines for a far lower return. Bitcoin investors won a prize significantly more prominent than those offered by slot machines. Most digital currency tokens will fall into obscurity without a significant market cap. The hundred-dollar notes put into the slot and video poker machines, which act as money shredders, yield significantly lower payouts than the majority of the crypto tokens floating around in cyberspace. The meteoric rise of bitcoin serves as the best advertisement for the asset class.
Helium and Qtum
Currently, I am keeping an eye on two tokens: Helium (HNT) and Qtum (QTUM). Both companies have more than $1 billion in market capitalizations, which provides a critical mass necessary for existence.
Helium is one of the world’s most intriguing cryptocurrencies.
Trying to find a token that would perform similarly to Bitcoin, which soared from six cents to more than $65,000, is akin to purchasing a lottery ticket. Capital appreciation is critical for severe digital currency investors. The strongest will likely survive and thrive as the market matures in the months and years ahead. However, the higher they rise in parabolic rises, the more likely they will have a severe reversal. Gravity can be a strong force in excessively bullish markets on the upside.
While long-term buy-and-hold strategies on low-priced tokens with modest market capitalization may result in exponential gains, the odds of success are slim. Traders wishing to enter and exit positions should consider tokens with a market cap of more than $1 billion. As of April 14, 96 tokens qualify. Helium and Qtum both have a market capitalization above $1 billion.
Helium Communicating IoT Devices
HNT is the 87th most popular cryptocurrency as of April 14. It is a decentralized blockchain-based network that enables the Internet of Things (IoT) devices to communicate. Nodes consist of Hotspots, a cross between a wireless gateway and blockchain mining equipment. Users who manage nodes mine Helium’s native cryptocurrency, HNT, and rewards. Helium’s website details how the digital currency and blockchain network aim to streamline supply chain logistics in the building and infrastructure industries. The total supply of HNT coins is 223 million.
On April 14, Helium costs roughly $15.35 per pound.
Since June 2020, HEL has fluctuated between less than 28 cents to $19.50. In markets, the trend is always your friend, and the trend is higher in HNT, which also had a market capitalization of $1.205 billion on April 14.
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