The world of crypto currency is moving really fast. Over the past 5 years Bitcoin outperform any other investment like gold, stock market or real estate.
Over the past years hundreds of new crypto currencies came on the market. Most of them are just copy cat or only have a few features that make them different.
Only a handful of those crypto currencies are real outliers. Those unique ones disrupt their industry just like bitcoin did with the financial sector.
The following top 5 crypto currencies are outliers and are the one I am sure will go up in value by 10x-100x over the next 2 years. (Roger ver, here is my prediction) 🙂
**FOR THE UPDATED PRICE PREDICTION FOR 2018 SCROLL DOWN AT THE BOTTOM OF THIS POST**
Ethereum is a true outlier. It’s a platform that allows to create smart contract that runs on a decentralize network. The team behind Ethereum is very smart. I always look up the people that are behind a project before investing and Ethereum has 100% of my confidence. Those guys rock.
Other then the team, the degree of adoption that Ethereum gets at the moment is phenomenal. Because ethereum is a platform where developer can deploy Dapps, a lot of inovation is being made at the moment and each one of those innovation boost the adoption rate of Ethereum and create a network effect.
If one currency can make it big, it is Ethereum. It already grew 1000% over the past few months and I can see the currency go another 1000% easily if not more over the next few months and years.
Ethereum is the only crypto-currency that I believe has the capacity to overtake Bitcoin Market cap in the near future.
Current Market Cap: $816,840,813
Price: $10.54 US
Prediction: Ethereum is the crypto currency that has the most potential. I think it could be possible to see it overtake Bitcoin in Market Cap. 500$/ether is something plausible in the near future.
Factom is another fantastic cryptocurrency that used to be called “Notary Chain” that should grow by a lot this year.
Factom allows companies to create immutable database.
Factom store information in their own blockchain and then create a hash of that data and stores it into the Bitcoin blockchain. They are also working on adding that hash into ethereum and other big blockchain to add protection.
Factom just got a huge contract with 20 smart cities in China and are working with other countries to create immutable data base. This will allow those government to stream line and secure their data.
The market for Factom is huge and they definitly are outliers. The people behind Factom are also very smart. I am looking forward the growth of this company.
Current Market Cap: $10,408,536
Price: $1.19 US
Prediction: Factom is getting mass adoption very quickly, I can see it growing to $30 before the summer.
Maidsafe has been around for quite a while now. 10 years exactly and they finally launch their Alpha MVP this week. Maidsafe is a decentralize database.
Instead of storing data on your computer, with maidsafe you can encrypt and upload it on the decentralise server. That way no one person can access your data without your permission. It is 100% secure and it doesnt use any space.
This decentralise database will make it possibe for whistle blower to share information without having the fear of seeing the governement or other group censor them. It is the internet uncensored.
Again, the people behind maidsafe are real geniuses. When you listen to them, you know that their vision is the future. I am so excited to have the safenet working. Once the safenet goes live the crypto-currency behind their project should skyrocket to the moon. It already went 10x over the past few months but thats nothing compare to what is coming.
Maidsafe has the capacity to revoluionize the internet as we know it. They are really amazing. Only people in the crypto-world know them because they are in Alpha, but as soon as they are live ( a few months) You will see them on every newspaper.
Right now you can only purchase their temporary coins called MaidSafeCoin. Im not sure how the exchange process will work so that is the only thing stopping me from investing heavily in this one.
Current Market Cap: $46,466,724
Price: $0.10 US
Prediction: once they go live, their price will sky rocket to a few dollars for sure. I really think they can revolutionize the internet so their price should reflect that in the long term. 600$ in a few years.
Bitcoin has proven a store of value over the past few years and it is currently trading at 410$ today. The price vary a lot but it outperformed all the other investment vehicle by a lot.
Bitcoin has the network effect and most people have heard of Bitcoin. But this is not a panacea because Myspace had the network effect at some point and they lost their position over better platforms like Facebook.
Over the past few years, Bitcoin got a lot of venture capital money so we should see very interesting apps and project coming to the market in 2016. All those companies will drive wider public adoption which would drive the price up.
One problem with bitcoin is that it’s block size limit reached the maximum amount of transaction it can process. It will need to overcome this before the price can start climbing again.
Current Market Cap: $6,275,855,363
Price: $410 US
Prediction: With the stock market going down, people will be looking for a safe heaven. I think it can reach 1200$ before the end of the year if they don’t get overtaken by Ethereum. If they get overtaken, we might see the price drop instead as people transfer to this better option.
Ripple is my last choice. The Banking system is trying to catch up on what Bitcoin did to them. The only thing stoping bitcoin right now is slow rate of adoption. Ripple pivoted into the banking market and recently closed a deal with SBI Bank, one of the main financial institution in Asia.
I heard that Ripple was trying to do something with the w3c consortium and I heard of Ripple trying to close a deal with RBC bank. So there is no big tornado yet but it seems like they are working hard behind the scene and something big might come out in the near future.
One thing I know is that the banking system would rather deal with a stable crypto-currency rather than one that fluctuate a lot, so Im not sure how that will play out with Ripple.
I wouldn’t hold my breath and I’m not too interested to see the banking system win, all I want is to see bitcoin succeed. But I keep Ripple in the top 5 because I can see them being disruptive to the banking industry in the future.
Current Market Cap: $276,170,587
Price: 0.008 US
Prediction: If Ripple can prove that they are the solution for the banking industry, their valuation could skyrocket. Until then, let’s watch on the side line.
I think that Bitcoin, Ethereum, Factom and Maidsafe all do something very different and they complete each other. No one could do what the other one can do. They are all necessary in their adoption rate is very fast. This is why those are my main bet for the 5 best crypto currencies of 2016. Ripple is a long shot but is worth following.
Crypto currency are one of the biggest opportunies for investor out there. Forget about gold or the stock market. Crypto are the revolution and if you don’t want to be left behind, you better get started.
If you want to buy Bitcoin, Coinbase is the exchange I personally use. You can buy Bitcoin and Ethereum and receive Bitcoin payment directly into your bank account.
**UPDATE FOR JUNE 2018**
I first wrote this blog post in 2016 and as you can see, the price of many cryptocurrency went up quite a lot. If you followed my advices, the best investment so far was Ethereum. I predicted 500$ and we are currently sitting at 432$ per Ether as i’m writing this blog post.
My investment strategy has changed slightly since I first wrote this blog post.
I currently think that most other cryptocurrencies are overvalued. I would advice against Ripple, Maidsafe and Factom at current price.
Ethereum and bitcoin are both a very good investment in my eyes and I still have them in my buy list. in order my top 4 are:
Bitcoin is the gold standard when it comes to cryptocurrency. It will stay the number one cryptocurrency for the foreseeable future. There’s many reason why I think bitcoin price will keep on rising in 2018 and beyond.
First, the lightning network just launched and this is really good news. The lightning network is one of the solution created by some members of the community to resolve the problem of scaling Bitcoin. It allows the processing of more transactions every second. With the lightning network, a second layer solution,(It doesn’t interfere with the functioning of Bitcoin) users can finally transact everyday with Bitcoin to buy a cup of coffee or do groceries. If the lightning network get widely adopted it, it will open up many new use cases in commerce and micro-payments.
Another major reason for the upcoming increase in price of Bitcoin is that we are seeing more and more solutions for institutional investors. For example, Coinbase has released Bitcoin Custody which allows institutional investors to buy Bitcoin for their clients and give custody to Coinbase.
Many investment firms were previously kept aside from investing in this new assets class which is bitcoin because they didn’t have the expertise to secure the private keys for their clients(imagine losing 100 millions dollars worth of Bitcoin). With those new solutions emerging like Bitcoin Custody and specialize trading platform for institutional investors, the doors are now wide open for a lots of money to come in.
The only long term downside I see with Bitcoin is the overuse of energy in mining, which I think will only force us to turn to green energy. Other black swan event cannot be discarded but they are black swan In the way that they can’t be predicted neither. So every year that goes by makes the long term success of Bitcoin ever more likely.
Current price: $6600
price prediction: $60 000 by 2020. This is a conservative prediction. The upcoming halving scheduled for may 2020 will take away a lot of selling pressure on the exchanges around the world. This will in turn make the price increase dramatically. Remember that the last 2 halving were accompanied by massive bull run(halving of 2012 and 2016).
With a debt cycle near its peak, I wouldn’t be surprised if we’d go in a recession within the next 24 months and in that case, I am even more bullish on Bitcoin.
Overall, Bitcoin will be the winning asset class for the upcoming 2 years, outperforming stock, real estate and gold again. If you care at all about your financial future, it’s important that you accumulate as many Bitcoin as you can while it is still affordable to do so.
Ethereum was able to gather a solid community around its project which is no small task. People who are working with ethereum are passionate about it and will not let it down at the first difficulty. Because of that, I don’t see Ethereum disappearing from people radar hence keeping the price at level where it is today.
I see 2 current problem with Ethereum and this is why I am not recommending it as much as I did on my last call.
My first reason to be cautious is that Ethereum as an inflationary policy built in. Where there will never be more than 21 millions Bitcoin ever, Ethereum will keep on inflating at a small rate each year for infinity. At scale, a small inflation seems to be the only solution for running decentralized app all around the world. So that is why I am not over concerned about this but uses of Dapp will have to keep on increasing in order to justify the price.
The second reason I have a little bit of cold feet with Ethereum is that they have much bigger issue with scaling than Bitcoin. If millions of people would suddenly start using Ethereum today, the whole network would grind to a stop. The network is just incapable to have so many transaction at once and this would render unusable all Dapps on the network.
Ethereum has a much more urgent need for Scaling than Bitcoin. Ethereum does have a roadmap to solve this problem but they are still just project on paper and no software got released in that direction yet. I have Ether on my buy list because I bet on Vitalik Buterin and his team to find a solution to this problem but it’s is well worth noting that they are still far from having resolved it.
Current Price: $473
Price Prediction: $3000 by 2020. I think that Ethereum will take advantage of the increase in price of Bitcoin. Ethereum is the second largest crypto by Market Cap and if it can keep its strong community, I don’t see why Ethereum would lose it’s pole position.
3. Binance Coin
Binance is currently the biggest cryptocurrency exchange in the world. They released a Coin when they first got started in 2017 called Binance Coin(BNB) to finance their operation. Within a year, Binance exchange quickly became the number one exchange in the world.
The current use case of BNB is that trader on Binance who hold the coin can reduce their trading fees. Another reason to hold the coin is that a future decentralized exchange built by binance will possibly be using BNB as the fuel for the exchange.
There’s also another great reason to hold the coin. Every quarter, 20% of all the profit made by the cryptocurrency exchange Binance are use to buy back BNB in circulation and every coin purchased this way are burnt. This decrease the supply of circulating BNB, hence the appreciation of it over the past year.
Because exchanges are making a LOT of money right now, and I think they will be making even more money as more traders shift from the regulatory burdensome stock trading to relatively regulatory free cryptocurrency trading, I am betting on binance Coin.
Current Price: $14.76
Price Prediction: $90 by 2020. If Binance coin gets integrated into a decentralized exchange like planed by the CEO of Binance, we might see much higher price in the longer term.
For the shorter term, my whole Bitcoin and cryptocurrency investment strategy rest on the prospect of a steady or increasing adoption rate of Cryptocurrency in the future. If Binance keep it’s leading position which I believe it will because of its able management team, Binance profit will increase proportionally to the increase of interest in cryptocurrency. They will then burn more coins every quarter, making each one of the remaining coin more valuable.
This is the most under-looked part of a portfolio in my opinion but it is really important. In case of a correction, its important to have some cash on hands to buy more cryptocurrencies or just cover unexpected expenses. You should have enough dollars in your local currency to cover emergency expenses so you don’t have to sell cryptocurrency in a bear market in such case.
I see many people trying to time the market and it’s quite difficult if you don’t have a solid stomach and a basic understanding of human behavior. If you have some cash in the banks, you won’t have to sell in 4-6 months if the price is even lower than it is today.
I always take a long term approach and so I think you should not touch the money invested for at least 2 years from the time you invest or until after the next bull market. To do so, you need a plan and enough money to sustain some unforeseen events.
But keep in mind that this currency is the only one who is guaranteed to lose purchasing power over the next years, so keep some but not too much 😉
Current Price: $1.00
Price prediction: $0.50 in 2038 Based on the central banks inflation target of 2% per year, the US dollar will have lost 50% of it’s value in 20 years. Consume with moderation!