The integration of Bitcoin as a payment method and its growing popularity as an asset class will not be possible without technological advancements in its ecosystem. A recent survey has revealed that 88% of institutional investors and 75% of retail investors believe that cryptocurrencies will be adopted by the mainstream within the next decade. To determine which cryptocurrencies to buy and hold over the next 10 years, we identified projects that were increasing in popularity and conducted extensive research to understand the underlying technology, the problem it is designed for, and its target sector. We also analyzed the value and performance metrics of each coin.
We believe that the market capitalization of a currency is a key indicator of its current value, and the projects that the currency and its target industry are working on may give clues to its usefulness and sustainability going forward. One such project is Polygon, a blockchain network that solves the blockchain trilemma of security, scalability, and decentralization. MATIC is the native cryptocurrency of the network. The Polygon network achieves consensus through proof-of-stake, but it does so by using a series of sidechains that allow the main chain to remain free and thus promote faster and more scalable transactions.
This helps to overcome the scalability and costly transaction challenges faced by Ethereum. The Polygon network also has an Ethereum virtual machine (EVM), which allows it to be compatible with Ethereum-based applications. The most prominent technology companies that are making inroads into the crypto ecosystem include Alphabet Inc. Building trust and credibility in the crypto space is, in the eyes of consumers, easier if you are not a government entity. But it is worth considering where and how we will generate the energy to meet the demand of a growing cryptocurrency market, as well as whether state actors who see it as a competitor to fiat power will further turn it into a black market commodity. Bitcoin and cryptocurrencies have skyrocketed over the past year with Bitcoin's price rising around 250%.
While some welcomed this move, it was also met with backlash and protests due to cryptocurrency price volatility. This is mainly because blockchain technology is the backbone of cryptocurrencies such as Ethereum and Bitcoin, and demand for these coins has skyrocketed since they began to gain global recognition and acceptance. Thirteen years ago, cryptocurrency recruited users out of the desire to shake up the exclusive and institutionalized world of finance; to create a widely accessible way to move money and pay for goods and services, regardless of individual circumstances. Investors looking to hold long positions in crypto should consider Polygon, as it is one of the few projects aimed at solving the notorious scalability problem. The fall in prices has coincided with a drop in broader financial markets, which has spread to other leading cryptocurrencies such as Ethereum (ETH) and Solana (SOL). Others, including card giants Visa V and Mastercard MA, have recently indicated that they are preparing to offer greater support for Bitcoin and cryptocurrencies. Regardless of what the future of cryptocurrency holds, there is a lot of work to be done to balance risks with rewards, and there are plenty of opportunities for brands and individuals taking on this task.
Market volatility is why investment experts recommend keeping any cryptocurrency investment below 5% of your total portfolio and never investing anything you don't agree to lose. While the future of cryptocurrency will be shaped by regulators, it can also be influenced by brands, many of which are launched to meet the needs of the growing market that governments have so far ignored.