Two cryptocurrencies to buy now and keep, they will go up!

These digital assets could make you significantly richer over the next decade. Rampant inflation and rising interest rates led to a major sell-off in several asset classes, but crypto assets were particularly hard hit. Since peaking last November, the cryptocurrency market has fallen around 42%, and some analysts are now predicting another crypto winter.

What does this mean for investors? The last crypto winter was brutal — the market saw 88% of its value wiped out in 2018. But prices have more than rebounded since then, rising 1,700% in the past few years. From that perspective, the current pullback actually looks like a buying opportunity, and Bitcoin and Ethereum should be on every crypto investor’s bucket list.

Bitcoin

On several occasions, Ark Invest’s Managing Director, Cathie Wood, has explained the importance of bitcoin as the first global, private, and decentralized monetary system ever invented. Never before in human history has there been a borderless currency beyond the control of a centralized government or institution. That fact alone makes a compelling investment thesis.

Bitcoin also benefits from scarcity. Its supply is limited to 21 million coins, and if demand continues to increase, this rarity will increase its value over time. This would make bitcoin a powerful hedge against inflation, as its purchasing power would actually increase over time.

Some investors may disagree with this statement, but the data so far is clear: the consumer price index has risen about 30% over the past decade, which means the US dollar is worth less today than 10 years ago. But bitcoin’s value has appreciated 99.996% against the dollar, according to Bloomberg, which means it’s worth a lot more.

Investors have good reason to believe that the demand for bitcoins will continue to increase. The cryptocurrency fever has gone beyond the borders of retail traders. According to Fidelity, institutional investors are increasingly interested in digital assets, especially bitcoin. Beyond that, bitcoin has also become an important part of the cash strategy of many companies and governments. In fact, these entities own more than 3% of the bitcoins in circulation.

Ark Invest believes these trends will continue for years to come, and the company estimates that the resulting demand could push bitcoin’s market capitalization to $28.5 trillion by 2030. At this level, each The coin is said to be worth nearly $1.4 million, implying a 36x return from its current price of around $38,000. It’s a good idea, isn’t it? Even if that doesn’t happen, bitcoin is still a popular asset with limited supply. These qualities should create wealth for long-term investors.

Ethereum

The Bitcoin blockchain is just a digital record of transaction data, but the Ethereum blockchain can run self-executing computer programs called smart contracts. Since its inception in 2015, smart contract technology has evolved into a thriving ecosystem of decentralized applications (dApps) and decentralized financial services (DeFi).

DeFi is particularly attractive because it allows investors to lend, borrow, and earn interest without involving banks or other financial institutions. In other words, DeFi makes financial services more efficient by eliminating intermediaries. A case in point: The Compound protocol currently pays out 1.7% annual percentage yield (APY) on Tether deposits, a stablecoin pegged to the US dollar. But Livret A only brings in 1% per year.

Ethereum has turned its status as a smart contract pioneer into a significant competitive advantage. It currently ranks by far as the largest DeFi ecosystem, with $110 billion invested on the blockchain. This figure represents 55% of all DeFi investments on any blockchain. Unfortunately, this popularity has led to significant network congestion, which has caused transaction fees to skyrocket.

As a result, many rival blockchains have emerged to challenge Ethereum, though none come close to its scale. More importantly, the developer community has a fix in the works. A scaling solution slated to launch in 2023 could accelerate Ethereum throughput to 100,000 transactions per second, four times more than the Visa network can handle.

With this in mind, Ark believes Ethereum could take away market share from traditional financial service providers. As adoption of Ethereum-based software and services increases, demand for the underlying cryptocurrency is expected to increase, both because it is used to pay transaction fees and because it is the preferred guarantee on the platform. To that end, Ark believes Ethereum’s market capitalization could exceed $20 trillion within the next ten years. This implies 59x returns from its current market capitalization of $332 billion and is why this cryptocurrency is worth owning.

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