The best crypto bets in 2022
Categories: Crypto News
It’s the encrypted equivalent of the word ‘Bitcoin’ — the cryptocurrency that traded at $46,578 (₹35 lakh) per unit on December 20, translating into a global market cap of $881 billion. That’s 3.36 times the GDP of Pakistan, 2.72 times of Bangladesh and 10 times of Sri Lanka. Having started at $1 in 2009 at launch, Bitcoin remains by far the most expensive crypto in history. If an investor had invested $100 in Bitcoin in 2009, the investment would be worth $4.67 million today (equivalent of ₹35 crore)! It’s this non-linear compounding that has spawned a 24-hour-open crypto bazaar teeming with over 15,700 currencies and a cumulative market cap of $2.37 trillion. It includes coins and tokens trading in cents and even smaller fractions. Among all these, the top 10 cryptos that have cornered the attention of investors include Bitcoin, Ethereum, Cardano, Dogecoin, Litecoin, Bitcoin Cash, Filecoin, Ethereum Classic, Monero and Helium, accounting for $1.45-trillion market cap. Crypto investing began in India in 2013 when Bengaluru-based Unocoin became the first crypto exchange in the country.Sidharth Sogani, founder and CEO, Crebaco, however, believes the number is inflated. “It has to be volume and not the value invested as the average investment of Indians is too low,” he adds.Even as governments and central banks are still coming to terms with the enormity of digital assets, their returns have proved to be more than just an inflation beater. The year-to-date return of Bitcoin is 60.40%, head and shoulders above other asset classes, including real estate and gold.With central banks unleashing liquidity by slashing interest rates to near zero, money should have flown into gold. central banks have pumped in over $25 trillion into the global economy with over $9 trillion in the pandemic period alone. But gold failed to sizzle as cryptos stole the show. Bitcoin and other digital currencies are widely regarded as a shield against inflation mainly because of its limited supply, which is not influenced by its price.For instance, only 21 million units of Bitcoin are programmed to ever exist, unlike other digital currencies and tokens whose supply could increase based on demand and supply. Not surprising, it accounts for a chunk of the crypto market cap.Beyond Bitcoin, the crypto basket has enough and more to offer — some promising, some duds.