Major Bullish Run of Bitcoin, and the Altcoins That Will Follow

Major Bullish Run of Bitcoin, and the Altcoins That Will Follow

Before diving into which coins might undergo a massive bullish run, let's understand how we classify different types of coins.

Buying any coin recklessly could turn your investment into worthless paper. We need a clear understanding before investing.

The distinction between cryptocurrencies and stablecoins primarily lies in their purpose and value stability.

While both cryptocurrencies and stablecoins are based on blockchain technology, their purposes and use cases differ significantly.

Let’s look into the differences between cryptocurrencies and stablecoins and their detailed reasons.

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which cryptocurrency will rise

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Cryptocurrencies That May Experience a Bullish Run

Cryptocurrency

Cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) are decentralized digital currencies. Their main purposes include payments, value storage, and use as an investment asset. They are characterized by the following:

• Crypto generally refers to encryption. It's a compound word combining crypto (meaning encryption) and currency, which means digital currency.
• Value Volatility: Most cryptocurrencies are highly volatile. For instance, Bitcoin and Ethereum can see drastic price changes based on supply and demand.
• Decentralization: Cryptocurrencies operate without central authority, using P2P networks to facilitate transactions directly between users without banks or financial institutions.
• Purpose: Cryptocurrencies are used primarily as a general means of payment, a store of value, and for investment. Ethereum also provides additional functionality through its smart contract capabilities, which enables the development and execution of various dApps (decentralized applications).
• Investment Value: Due to their volatility, cryptocurrencies are widely used as speculative investments. Many people hold them with the hope of future value appreciation.

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Stablecoin

Stablecoins, such as Tether (USDT), USD Coin (USDC), and DAI, are cryptocurrencies pegged to real assets, mainly to maintain value stability. They feature the following:

• Value Stability: Stablecoins are typically pegged to fiat currencies like the US dollar or assets like gold to minimize price volatility. For example, 1 USDT is designed to maintain parity with 1 USD.
• Centralized or Decentralized Management: Most stablecoins are backed by real assets held by an issuer, which is responsible for maintaining the coin's value. However, DAI is a decentralized stablecoin maintained by collateralizing various cryptocurrencies.
• Purpose: Stablecoins are designed to provide a stable value for digital payments and remittances, acting as a stable asset in the DeFi ecosystem and allowing for collateral use.

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Major Differences Between Cryptocurrencies and Stablecoins

Price Stability

• Cryptocurrency: Prone to frequent price fluctuations (e.g., Bitcoin, Ethereum).
• Stablecoin: Pegged to fiat currencies or assets to maintain stable prices (e.g., USDT, USDC).

Purpose and Usage

• Cryptocurrency: Decentralized payments, value storage, smart contracts, and dApp execution.
• Stablecoin: Avoids the volatility of cryptocurrencies and provides stability for transactions and payments.

Issuance Structure

• Cryptocurrency: Issued and traded on decentralized networks.
• Stablecoin: Issued through centralized companies or decentralized collateral systems. For instance, Tether is issued by the Tether company, whereas DAI is issued by the MakerDAO system.

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Examples of Cryptocurrencies and Stablecoins

Category	Name	Symbol	Purpose	Whitepaper Summary
Cryptocurrency	Bitcoin	BTC	Decentralized digital currency	P2P electronic cash system using blockchain without central authority.
Cryptocurrency	Ethereum	ETH	Smart contract and dApp development	Provides a decentralized platform for automatic application execution using smart contracts.
Cryptocurrency	Ripple	XRP	International remittance	Uses blockchain technology to solve payment delays in traditional finance.
Cryptocurrency	Litecoin	LTC	Faster transactions compared to Bitcoin	Based on Bitcoin's structure but improved with faster block creation.
Cryptocurrency	Cardano	ADA	Scalable and secure blockchain platform	Uses a PoS consensus algorithm for enhanced scalability and stability.
Cryptocurrency	Polkadot	DOT	Interoperability among multiple blockchains	Connects multiple blockchains, enabling communication and functionality integration.
Cryptocurrency	Solana	SOL	Fast transactions with low costs	High-speed transactions through reduced latency and increased scalability.
Cryptocurrency	Chainlink	LINK	Providing external data for smart contracts	Enables smart contracts to access reliable external data securely.
Stablecoin	Tether	USDT	USD-pegged stablecoin	Maintains 1 USDT value equivalent to 1 USD using USD reserves.
Stablecoin	USD Coin	USDC	Pegged to the dollar, emphasizes transparency	Regular audits ensure reliability.
Stablecoin	Dai	DAI	Decentralized stablecoin	Uses collateral cryptocurrencies to maintain value without central control.
Stablecoin	Binance USD	BUSD	Dollar-pegged, regulated stablecoin	Ensures value stability through a partnership with Paxos.
Stablecoin	Terra USD	UST	Algorithm-based stablecoin pegged to USD	Maintains dollar peg using algorithms and other cryptocurrencies.
Stablecoin	TrueUSD	TUSD	Transparent and legally guaranteed stablecoin	Uses regular audits and asset reserves for reliability.

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Understanding these distinctions helps us see how cryptocurrencies and stablecoins are optimized for their respective purposes. Cryptocurrencies focus on decentralization, P2P transactions, and accepting value volatility, while stablecoins are designed for financial services with a focus on stability.

 

With the recognition of coins with intrinsic value, it's crucial to buy coins that have established themselves in the market to protect your valuable assets.

 

The rise in a coin's value will come when many people recognize its value, leading to an influx of investment.

 

Considering that spot ETFs for cryptocurrencies are already launched in the US, institutional investors will begin pouring their clients' funds into the market.

 

With the big wave coming, let's surf safely and make money joyfully.

I'll keep posting about coins in the future!!

 

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