3 Growth Cryptocurrencies That Could Set You Up For Life

They are dominant in high growth markets

Last Updated November 20th 2021

8 Min Read

Key Points

Bitcoin’s scarcity makes it a potential replacement for Gold as a store-of-value.
Ethereum has everything it takes to dominate the emerging Web 3.0 space.
Axie Infinity is set to benefit from play-to-earn gaming and growing mass awareness of the Metaverse.

To make money off assets, you need to develop a long-term mindset. This holds for all financial instruments, and cryptocurrencies are no exception.

While the cryptocurrency market is highly volatile, anyone who holds for an average of 5-years always ends up with a high ROI.

Scanning through the cryptocurrency market, there are a couple that has excellent long-term prospects. That’s because of their strong use cases, tokenomics, and the nature of their target markets.

Bitcoin

Most people rarely think of Bitcoin (BTC) as a growth cryptocurrency. The assumption is that, at its current prices, the opportunity for exponential growth is gone.

However, this can’t be further from the truth. Sure, Bitcoin may not rally by 100,000% in a month like most new altcoins, but it’s unlikely to dump as hard either. There is also the fact that some of the cryptocurrencies giving investors parabolic gains, in days, are scams.

For Bitcoin, as long you have the capital to buy at least 50% of it, there is a good chance that you are set for life. The risk of it scamming out is zero, and there is a good chance that it will keep growing in value for many years.

To understand why Bitcoin has a good chance of delivering consistent value growth, you need to know why it has gained so much value in the first place.

For starters, Bitcoin is where it is today for its first-mover advantage. Before Bitcoin, there were many other attempts at creating a cryptocurrency, but none grew beyond nerd communities.

Bitcoin was the first to gain widespread acceptance, and this gave it dominance in the market. Today, there are lots of people who equate the cryptocurrency market, and blockchain technology to Bitcoin. This is unlikely to change soon.

Bitcoin is also where it is today because of its scarcity. There are only 21 million Bitcoins that can ever be mined. On top of that, Bitcoin mining difficulty has been going up, with block rewards cut in half every four years.

The element of scarcity has led to a situation whereby, when smoothened out, the Bitcoin price chart has been on an upward trajectory since its launch.

Going into the future, these are the same factors that will guarantee Bitcoin's consistent value appreciation for many years to come. For instance, due to its market dominance and strong brand name, new investors coming to crypto are likely to consider Bitcoin first, than other cryptocurrencies. This will put pressure on its low supply and help drive up the price.

On the aspect of scarcity, Bitcoin is only set to get scarcer over time. That’s because, every four years, the Bitcoin mining rewards will be slashed in half. In the upcoming Bitcoin halving of 2024, the Bitcoin mining rewards will be cut to just 3.125 BTC per block. There is also the fact that a lot of the Bitcoin mined since inception is lost. Millions of BTC are lost forever after their owners lost their private keys.

While Bitcoin’s supply is capped and many coins lost, interest in BTC is on the rise. For instance, between 2020 and 2021, institutional uptake of Bitcoin has risen sharply. The result was the rally that saw Bitcoin recently peak at $68k.

Due to its scarcity, ease of transaction, and storage, Bitcoin is well-positioned to replace Gold as the world’s number one store of value. Acceptance of Bitcoin as the default store-of-value could see its value hit millions of dollars per coin in a few decades.

Analysts seem to be in consensus that Bitcoin could trade at $1 million by 2030. If this happens, then anyone who buys a single Bitcoin today could be set for life.

Check Out: Ways to Make (or Lose) Money With Bitcoin (BTC)

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Ethereum

Ethereum (ETH), the second-largest cryptocurrency by market cap, could easily set you up for life. Ethereum is the number one platform blockchain, which puts it in pole position for web 3.0.

To understand how big of a deal Ethereum is, you need to understand the transformation that it is bringing to the internet.

In the early 1990s, the world got to experience Web 1.0. This was the time when websites were platforms for displaying text, such as company phone numbers, about us pages, among others. Websites were basic one-way communication platforms on the internet.

Then in the 2000s, Web 2.0 was born. Web 2.0 is all about interactive websites, and that is where we are today. With everything from social media pages to video sites like YouTube, you can interact with a website in real-time.

Web 3.0 is set to take things to a whole new level. It is giving individuals ownership of the internet. With Web 3.0, any digital content you own is yours, and no one can take it from you. For instance, unlike in Web 2.0, where YouTube can pull down your content, no one can take your content in Web 3.0.

You are probably wondering how Ethereum fits into all this, right? Web 3.0 is anchored on blockchain technology, whereby all data generated is updated on an immutable decentralized ledger. Individuals get to interact with the internet through decentralized applications and Ethereum is the market leader on this front.

Due to its first-mover advantage, Ethereum has managed to dominate the decentralized applications space. The majority of all Dapps, including DeFi ones, run on Ethereum. Because one needs Ethereum to transact on these Dapps, the demand, and by extension value of Ethereum, has shot up over time. From trading at pennies when it launched, Ethereum recently hit a high of $4800.

Going into the future, the value of Ethereum will only get bigger. That’s because a lot more people are learning about the opportunities that Web 3.0 presents. This is evident in the explosive growth of DeFi applications that decentralize everything from lending to options trading.

Creatives also realize that they stand to benefit more by taking ownership of their content. This is evident in the massive growth of NFTs on the Ethereum blockchain. Today, everything from music to artworks is being turned into NFTs, and more is coming.

The best part is that Ethereum is positioning itself to dominate the upcoming Web 3.0 revolution. Ethereum is doing this by dealing with the scalability issues that have plagued it since it launched.

Over the last 11 months, Ethereum has been in the process of a transition from Ethereum to Ethereum 2.0. The shift aims to make Ethereum more energy-efficient and scalable.

The transition also includes upgrades that have made Ethereum deflationary. For instance, through the London Fork in August, a portion of the gas fees is burned instead of being distributed to miners. The effect has been to make Ethereum deflationary.

The impact of a deflationary, high-demand Ethereum has been the rally from $1700 back in August to a high of $4800 in November. With the transition to Ethereum 2.0 set to be completed in 2022 and the adoption of Web 3.0 in top gear, things look good for Ethereum.

It would not be surprising if Ethereum trades at $20k or more in the future. This means if you accumulate Ethereum today, the chances are that you could be set for life.

Don't Miss: Will Ethereum Make Me Rich In Ten Years?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Axie Infinity

Axie Infinity (AXS) has been a top performer recently. Even in the current crypto dip, it is holding up pretty well relative to many other cryptocurrencies. Axie Infinity is focused on NFT play-to-earn gaming, a major aspect of the fast ballooning Metaverse space.

Now that Facebook has taken the concept of the Metaverse to the masses, Axie Infinity is likely to draw in a lot of developers and players going into the future. Besides, the concept is very attractive to gamers, and for all intents and purposes, is the future of the videogame industry. That’s because it takes gaming beyond fun and turns it into a revenue stream for average gamers.

On top of that, since investors can stake the Axie Infinity, AXS tokens, it has become an attractive way to earn a passive income. This also ensures price stability for AXS, further making it an attractive investment going into the future.

While Axie Infinity is not the only player in NFT gaming, it is one of the more dominant ones. This has given it an edge in this market, just like Ethereum has an advantage for being the most dominant platform blockchain.

Axie Infinity’s potential is evident in its institutional flow of capital. A while back, Axie did a series B funding round to raise $150 million from top institutional investors.

Due to Axie Infinity’s market dominance and the fast-growing adoption of Play-to-Earn gaming, analysts expect AXS to trade at over $2300 in the early 2030s. If these projections come to pass, then AXS is easily one of the growth cryptocurrencies that could set you up for life.