Is there a long-term case for crypto? With these 3 coins the answer is overwhelmingly yes

In 2023, it seems that cryptocurrencies are finally being recognized as a viable long-term investment option for patient buy-and-hold investors. Large institutional investors are reluctant to admit that cryptocurrencies are a worthwhile asset class to invest in, despite being an extremely risky and volatile asset class. At the same time, there is growing debate among industry luminaries about cryptocurrencies as a way to plan for retirement.

With that in mind, let’s take a closer look at the three ciphers – Bitcoin (Bitcoin -0.14%), ethereum (ETH -0.69%)When polygon (matic -1.59%) — This may be suitable for those who take a long-term view of the market.

1. Bitcoin

An obvious starting point for anyone building a long-term cryptocurrency portfolio is Bitcoin, which currently accounts for nearly 45% of the total cryptocurrency market capitalization. Cryptocurrencies are not a “safe” buy-and-hold investment, but Bitcoin has proven to be surprisingly resilient to the ups and downs of the crypto market. In its 14-year history, Bitcoin has survived several major crashes, including the 2011 crash that saw him plummet to $0.01 in a matter of days. But each time Bitcoin recovers better than before.

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One of Bitcoin’s long-term investment themes is that it is the future of money. As time goes on, Bitcoin will become more and more important as an online payment option. Bitcoin will eventually be used for all his online transactions, according to some Bitcoin bulls, including Tim Draper, his capitalist at the Silicon Valley venture. This is what Draper had in mind when he recently suggested that Bitcoin could surge to his $250,000 mark.

Looking at things in the very long term, Bitcoin could eventually start replacing sovereign currencies. That was the original vision of Satoshi Nakamoto, the anonymous creator of Bitcoin. The famous White of Bitcoin because his paper suggests that decentralized peer-to-peer digital currencies like Bitcoin may be better than fiat currencies when it comes to managing macroeconomic factors such as inflation. used for After all, the total number of bitcoins in circulation is he fixed at 21 million, so there is no risk of hyperinflation from governments and central banks issuing too much money.

2. Ethereum

Another coin with remarkable long-term staying power is Ethereum, which accounts for another 20% of the total crypto market capitalization. Bitcoin’s primary function is as a store of value and an online payment option, but Ethereum promises much more in terms of utility and real-world use cases. It pioneered the concept of smart contracts in 2007 and has since become an innovation leader in digital assets such as decentralized finance, gaming, the metaverse, and non-fungible tokens (NFTs).

The best way to think of Ethereum is that it is the foundation or underpinnings of everything developers hope to build in the blockchain and crypto world. And this is what gives Ethereum its long-term appeal. When you invest in Ethereum, you are not just investing in a single cryptocurrency, you are also investing in the entire blockchain ecosystem. Some analysts once called Ethereum “digital oil” for its ability to power the modern blockchain economy.

As a result of The Merge, Ethereum transformed into a faster and more energy efficient blockchain, so it can become the world’s leading Layer 1 blockchain more than ever before. Already, Ethereum founder Vitalik Buterin has laid out an impressive long-term roadmap for blockchain, which will eventually be able to process millions of transactions per second. When that happens, Ethereum will be faster and more powerful than today’s credit card network, which can only process 24,000 transactions per second.

3. Polygon

Finally, there is Polygon, which has made it into the list of the top 10 cryptocurrencies by market capitalization, largely based on its ability to create innovative use cases for blockchain technology. Walt Disney, with the long-term aim of developing new use cases within the entertainment sector.is affiliated with Starbucks About the new Web3 Customer Loyalty Program.and partnered with meta platform Our goal is to make NFTs mainstream for billions of social media users around the world.

One of Polygon’s attractions is that it is a scaling solution for Ethereum. Polygon leverages the security and stability of Ethereum and uses its own state-of-the-art technology to bundle transactions and endow his users with world-class performance. In 2022, Buterin praised his Polygon’s “genuinely amazing” new scaling technology. So, as fast as Ethereum can grow, Polygon can grow even faster.

buy and hold long term

While cryptocurrencies are often associated with short-term speculation and market timing, there is an increasingly strong case for cryptocurrencies as long-term investment options. Forget the silly meme coins and look to the coins and utility tokens that are advancing the future of money and growing the modern blockchain economy. As such, we are long-term bullish on Bitcoin, Ethereum, and Polygon.