10 Cryptocurrencies To Buy and Hold for the Next 10 Years
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Blockchain is The Future
The world is headed towards a digital transformation, with the metaverse, NFTs, and cryptocurrencies being all that is talked about. At the very center of these future technologies is blockchain. According to the Blockchain Technology Market Report 2022, the global blockchain market was valued at $4.93 billion in 2021 and is projected to reach $1.43 trillion by 2030, registering a CAGR of 85.9%. This is primarily because blockchain technology is the backbone of cryptocurrencies like Ethereum and Bitcoin, and the demand for these currencies has been sky-rocketing ever since they started gaining global recognition and acceptance.
The Rising Popularity of Cryptocurrency
Data provided by TripleA shows that as of 2021, global crypto ownership rates averaged at 3.9%, with more than 300 million people around the world having some stake in cryptocurrencies. More than 18,000 businesses have added cryptocurrencies to their payment options. According to the Cryptocurrency Market Forecast 2022, the global cryptocurrency market was worth $1.78 trillion in 2021. The market is projected to reach $32.42 trillion by 2027, registering a compound annual growth rate of 58.4% over the forecasted period.
Crypto Gaining Acceptance
Governments around the world have started working on the regulation of these digital tokens. Last September, El Salvador adopted Bitcoin as legal tender and became the first country to accept cryptocurrency in exchange for everyday goods and services. On March 9, 2022, the Biden administration issued orders to regulate the trade of cryptocurrencies, as the number of crypto-users in the U.S. exceeded 16% of the country’s adult populace. Other countries that are moving towards legalizing digital currencies and working on laws to monitor them include Japan, Switzerland, the European Union, and Australia.
Financial companies like Visa Inc. (NYSE:V), PayPal Holdings, Inc. (NASDAQ:PYPL), Mastercard Incorporated (NYSE:MA), and JPMorgan Chase & Co. (NYSE:JPM) are expanding their portfolio by incorporating blockchain technology and bringing transparency to crypto-trade.
To determine 10 cryptocurrencies to buy and hold for the next 10 years, we identified projects that were rising in popularity. We then did extensive research to understand the project’s underlying technology, the problem it is designed to solve, and what is its target industry. We also looked at value and performance metrics for each currency. We believe the market capitalization of a currency is a key indicator of its current value, and the projects that the currency is working on, and its target industry can hint towards its utility and sustainability in the future.
Cryptocurrencies To Buy and Hold for the Next 10 Years
10. The Sandbox
The Sandbox was developed in 2011 by Pixowl as a mobile game rival to Minecraft. The game proved to be a success back in the day. In 2018, the founders of Pixowl decided to deploy the game on a blockchain that would give users a 3D open-world metaverse environment. The game was released in 2020 and gave users an immersive experience where they could create, buy, and sell digital assets in the form of non-fungible tokens in the game. The players transact in the game using its native SAND token, which has a maximum total supply fixed at 3 billion. As of March 22, 2022, The Sandbox has a market cap of $3.60 billion.
This March, HSBC Holdings plc (NYSE:HSBC) joined JPMorgan Chase & Co. (NYSE:JPM) in investing in the metaverse. HSBC Holdings plc (NYSE:HSBC) purchased its virtual plot in The Sandbox network. Moreover, as of this March, The Sandbox has reached over two million registered users.
HSBC Holdings plc (NYSE:HSBC) was a part of 10 hedge fund portfolios at the end of the fourth quarter of 2021. Of these, Renaissance Technologies is the dominating shareholder in the bank holding company, having stakes of $89.34 million. The investment covers 0.11% of Renaissance Technologies Q4 2021 investment portfolio.
The Sandbox exhibits long-term potential and is here to stay because of its involvement in the gaming industry and its projects in the NFT space. One of the most prominent backers of the metaverse and NFTs is Meta Platforms, Inc. (NASDAQ:FB). Here’s what Davis Funds had to say about Meta Platforms, Inc. (NASDAQ:FB) in its fourth-quarter 2021 investor letter:
“Within the traditional growth category, growing euphoria has led to bubble prices for many companies, most especially those with new and unproven business models such as those discussed above. In contrast, our research focuses on a select handful of proven growth stalwarts whose shares still trade at reasonable valuations. For example, because of concerns about future litigation and regulation, several dominant internet businesses, including Meta (formerly Facebook), trade at steep discounts to many unproven and unprofitable growth darlings that, in our view, trade at euphoric prices. While we expect a continued barrage of negative headlines around the company, as well as increased regulation in the years ahead, we do not expect a significant decline in its long-term profitability.”
9. Bitcoin Cash
Bitcoin Cash was forked from Bitcoin’s source code in 2017. Forking code means copying code but modifying it in such a way as to enhance the program. Bitcoin Cash was developed to solve the notorious scalability problem of Bitcoin. The block size for the child coin was increased to 8 megabytes, while that of the parent coin was 1 megabyte. This change allowed for faster transactions, lower transaction fees, and reduced wait times. This March, it was announced that Bitcoin Cash might gain the status of legal tender in Sint Maarten, a country in the Netherlands. Rolando Brison, the head of the United People’s Party, believes in the potential of Bitcoin Cash and also became the world’s first elected official to accept his salary in the form of the currency’s tokens. Bitcoin Cash is gaining popularity and acceptance and is therefore worth considering for a long-term investment in cryptocurrency.
Prominent backers of blockchain technology and the metaverse include Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB). By the end of the fourth quarter of 2021, 262 hedge funds held stakes worth $75.66 billion in Microsoft Corporation (NASDAQ:MSFT), up from 250 hedge funds in the preceding quarter with stakes amounting to $65.87 billion.
Here’s what Saturna Capital had to say about Microsoft Corporation (NASDAQ:MSFT) in its fourth-quarter 2021 investor letter:
“Only two companies remain from 2010’s top 10 list: Apple and Microsoft. Going back to 2000, only Microsoft remains. We expect that Microsoft will maintain its position as the dominant global provider of personal and business software, while growing its cloud business and potentially being a key provider of augmented and mixed hardware and software.
US Technology companies have been the equity market’s biggest winners in recent years. Because of the Amana Income Fund’s objective of current income, many of these zero- or low-dividend companies do not suit the Fund’s mandate. One that does — Microsoft, which returned 46.03% for 2021 — was the Fund’s second biggest contributor to returns during the year. While Technology no doubt underpins much of the current economy and its future potential, Tech stocks have also benefited from low inflation, globalization, and valuations that are near historic highs. With globalization backsliding and inflation worries escalating, we believe companies in other industries with strong financial positions, competitive advantages, strong management, attractive dividend yields, and reasonable valuations can offer investors diversification in the context of equity markets increasingly concentrated in a handful of very large Technology firms.”
Chainlink is a decentralized blockchain network built on Ethereum. Chainlink makes use of smart contracts to gather data from off-net sources, real-world data and brings it onto the blockchain in a tamper-proof manner. It achieves this by the use of oracles, which are computer programs designed to facilitate the transfer of secured data from off-chain sources to on-chain smart contracts. The network’s native token is LINK, and as of March 22, 2022, it boasts a market cap of $7.28 billion and has a maximum supply fixed at 1 billion tokens of which 467 million are in circulation. Last September, Chainlink announced that it will be collaborating with Cardano to develop smart contracts for Cardano’s decentralized finance applications. Even though LINK’s supply is far from how much is met, crypto investors are bullish on the token and are being encouraged to invest after looking at the network’s dedication to development.
Investors looking to buy and hold LINK should also consider going long in companies working in the digital finance space, such as Visa Inc. (NYSE:V), PayPal Holdings, Inc. (NASDAQ:PYPL), Mastercard Incorporated (NYSE:MA), and JPMorgan Chase & Co. (NYSE:JPM).
By the close of the fourth quarter of 2021, 110 hedge funds held stakes in PayPal Holdings, Inc. (NASDAQ:PYPL) worth $9.93 billion. Of these, Ken Fisher’s Fisher Asset Management was the dominating shareholder having stakes worth $2.72 billion in the company.
Here’s what Harding Loevner had to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q4 2021 investor letter:
“Within IT, PayPal reported slower growth outside its core US market and lowered its earnings guidance for 2022 just enough to catch the wrath of the expensiveness vigilantes. Viewed by sector, IT and Health Care were the biggest detractors in the quarter. Within IT, PayPal reported slower growth outside its core US market and lowered its earnings guidance for 2022 just enough to catch the wrath of the expensiveness vigilantes.”
Polygon is 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 via proof-of-stake, but it does so by using a series of side-chains that allow for the main chain to stay free and therefore promote faster and more scalable transactions. It beats the scalability and expensive transaction challenges faced by Ethereum. The Polygon network has an Ethereum Virtual Machine, EVM, which allows it to be compatible with Ethereum-based applications.
The network has currently achieved a speed of 65,000 transactions per second, which can be scaled to millions of transactions as the number of nodes grows. As of March 22, 2022, Polygon boasts a market cap of $11.69 billion and has a fixed maximum supply of 10 billion tokens, of which about 7.69 billion are already in circulation.
Polygon is gaining popularity in the crypto space because of its EVM compatibility and speedy transaction finality. The network is expected to grow in the years to come, with the main challenge being Ethereum 2.0. However, Ethereum 2.0 will not be releasing any time soon. Investors looking to hold long positions in crypto should consider polygon since it is one of the few projects aimed at solving the notorious scalability problem.
Investors bullish about cryptocurrencies like Polygon should also look into investing in financial companies that are looking into moving their operations on blockchains such as Visa Inc. (NYSE:V), PayPal Holdings, Inc. (NASDAQ:PYPL), Mastercard Incorporated (NYSE:MA), and JPMorgan Chase & Co. (NYSE:JPM).
By the end of the fourth quarter of 2021, JPMorgan Chase & Co. (NYSE:JPM) was spotted on 107 hedge fund portfolios. The total stakes of these funds amounted to $6.58 billion, up from $5.63 billion in the preceding quarter with 101 positions.
Miller Value Partners, an investment management firm, mentioned JPMorgan Chase & Co. (NYSE:JPM) in its fourth-quarter 2021 investor letter. Here’s what they said:
“I remember writing about the attractiveness of JP Morgan (JPM) right before it lost about a third of its value in the third quarter of 2011 (which didn’t please some of my colleagues!). I believed JPM was a high-quality bank whose prospects were undervalued due to the overhang on the space. It made money every year through the financial crisis.
In the decade-plus since then, JPM has beaten the market nicely (+417% versus SPX +345%) despite significant headwinds for banks (S&P Financial Sector +286%) and value stocks. Low market expectations are a key ingredient to attractive long-term returns!
An earthquake after-shock metaphor helps to explain the situation. Earthquakes relieve tension in physical systems, but aftershocks are common. These aftershocks aren’t as serious as the original event because stresses have been relieved. The financial crisis alleviated tensions in the financial system as weaker players either perished or were shored up with capital. Lessons learned impacted behavior (lower risk-taking behavior and higher propensity for monetary authorities to intervene supportively), which reduced future risk.
Those realities didn’t matter in the short term, but they sure did in the long term.”
Avalanche is an open-source proof of stake blockchain network that offers smart contract functionality. The network’s native token is AVAX. Avalanche is faster than Ethereum in terms of transaction speed, even though both achieve consensus through the same method. Avalanche uses subsampled voting to validate blocks on the blockchain. Avalanche can process 4,500 transactions per second and has a finality clock of 3 seconds. The network is active in the NFTs and gaming space. This March, the Avalanche foundation announced that it will be financing the development of the Avalanche Multiverse with a capital of $290 million. The Multiverse program will be working on Web3 gaming projects and NFTs. As of March 22, 2022, Avalanche has a market cap of $23.05 billion.
Investors looking to initiate long positions in crypto should consider Avalanche, as the network is proactive on the metaverse scene and is innovating in the NFT space. Moreover, the network is gaining popularity in the corporate world. Last November, the Ava Labs research team announced that it will be collaborating with Deloitte to develop a new disaster recovery platform that uses the Avalanche blockchain to help governments get federal emergency funding. Moreover, In December 2021, Ava Labs announced that it will be collaborating with Mastercard Incorporated (NYSE:MA) to join the Mastercard Start Path Crypto, which will explore new blockchain technology development opportunities.
The hype around the utility of blockchain technology and the development of decentralized applications is growing each day. The most prominent tech companies that are making inroads into the crypto eco-system include Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB).
Tao Value mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q4 2021 investor letter. Here’s what they had to say:
“Our top contributors this quarters included Yet Alphabet (NASDAQ:GOOG), adding 125 bps respectively. As of the end of this quarter, our top 3 positions also includes Alphabet (NASDAQ:GOOG). Alphabet (NASDAQ:GOOG) seemed to defy such impact and still delivered strong results, beating both revenue & earnings expectations.”
Solana is a public open-source project that offers smart contract functionality. The network’s native token is SOL. Solana achieves consensus via proof-of-stake and offers faster transactions due to its unique approach towards adding timestamps to blocks. The network boasts being one of the fastest blockchain networks in the industry and has currently set a record for validating 65,000 transactions per second. The network is dubbed as the “Ethereum Killer” because of its scalability and speed advantages over its competitors.
This March, actress Mila Kunis launched an animated series, The Gimmicks, which allows for an interactive experience for viewers. The animated series is making use of Solana’s non-fungible tokens. The rising popularity of using the Solana network for NFTs is attributed to the network’s ability to transact at faster speeds than Ethereum and charge significantly less “gas” fees. Until Ethereum 2.0 is not released, Solana will continue to be a faster and cheaper alternative.
A wide variety of decentralized networks can be built on top of Solana that cover decentralized finance, decentralized crypto exchanges, NFTs, crypto gaming, and many more. The network’s scalability and speed advantages over other cryptocurrencies puts it in a strong spot and make it a viable candidate for long-term crypto investments. As of March 22, 2022, Solana boasts a market cap of $29.59 billion and has 320.49 million tokens in circulation.
Cardano is an open-source and decentralized blockchain network that achieves consensus via proof-of-stake. As of March 22, 2022, Cardano is the eighth biggest cryptocurrency by market capitalization and boasts a market cap of $32.77 billion. Cardano is unique because of its mission to decentralize finance in Africa and other developing countries. The network’s native token is ADA.
Cardano is moving at a fast pace in the crypto universe and is becoming popular in the industry. The network announced several collaborations in the corporate sector. Last September, Cardano announced that it will be providing blockchain solutions to DISH Network Corporation (NASDAQ:DISH). Moreover, this January, Cardano announced that it will be teaming up with EMURGO, a blockchain company specializing in smart contracts, to aid in the development of Cardano’s decentralized applications and blockchain network.
Crypto investors are bullish on Cardano and are holding positions in the currency for long periods because of its unique approach towards providing DeFi applications in developing countries, and the way the network is carving its place in the corporate sector by announcing numerous strategic partnerships to help businesses grow.
Binance Coin, or BNB, was developed by the Binance crypto-exchange in 2017. BNB was built on top of the Ethereum blockchain network but is now built on Binance’s blockchain. The Binance ecosystem is the world’s largest crypto exchange, based on daily trading volume. BNB supports smart contracts and achieves consensus through a unique proof-of-staked authority (PoSA) mechanism, a hybrid of proof-of-stake and proof-of-authority mechanisms. As of March 22, 2022, BNB is ranked as the fourth-largest cryptocurrency by market capitalization and has a market cap of $66.54 billion.
This February, Binance announced that it will be collaborating with SM Entertainment to build a Play-to-Create (P2C) and Play-to-Earn (P2E) ecosystem. Binance and SM Entertainment believe that this will aid creators around the world to participate in recreation and profit from their original content and projects. Binance announced another collaboration, the same month, with YG entertainment Inc. to build in the NFT space, along with various other blockchain projects.
Wallet Investor, an algorithm-based forecasting website, predicts that BNB would reach approximately $729 by the first quarter of 2023, and in the next five years will be trading above $2,000. Investors are bullish on BNB for the long term because of its unique consensus mechanism and strong use-cases.
Ethereum was coined in 2014 by a Russian-Canadian programmer Vitalik Buterin. It is the second-largest cryptocurrency in the world by market cap and boasts a market capitalization of $358.77 billion as of March 22, 2022. The Ethereum blockchain network employs smart contracts in its decentralized applications and achieves consensus via proof-of-work. Ethereum attained an all-time high of $4,891.70 in November 2021, after which it has now dipped to under $3,000.
Ethereum is one of the cryptocurrencies that has not faded over time and has appreciated since its being. Vitalik Buterin is working on the newest update to Ethereum, Ethereum 2.0, which promises increased network bandwidth and reduced gas costs. Ethereum 2.0 will also allow support for staking nodes to earn Ethereum as passive income.
Investors looking to initiate long positions in crypto should consider Ethereum for their crypto-portfolios because of the network’s upcoming update, and its adoption in the corporate world.
Bitcoin is the largest cryptocurrency in the world by market capitalization as of today and has been at the top since the rise of cryptocurrencies. Bitcoin revolutionized the world of finance and was the first digital currency to gain recognition. Bitcoin was developed by an anonymous programmer Satoshi Nakatomo back in 2008. The notion behind Bitcoin was to decentralize finance and make cross-border payments less costly and time-efficient.
As of March 22, 2022, Bitcoin has a market cap of $804.21 billion and is trading at above $40,000 per unit. Last November, Bitcoin attained an all-time high of $68,990.90, after which it has dipped down to trading a little above $40,000 as of March 2022.
Veteran commodities investor Peter Brandt has received credit before for predicting Bitcoin’s price in 2018. The analyst made another prediction and put forth his technical analysis which shows BTC rallying up to $200,000 in the next five years.
Regardless of its volatility, Bitcoin is the most credible, recognized, and accepted cryptocurrency across the globe which makes it a suitable candidate for long crypto positions.
By Omer Farooq