When most people think about investing in cryptocurrencies, the thought of Bitcoin (CRYPTO:BTC) is typically the first thing that comes to mind. Many people new to the cryptocurrency world often consider Bitcoin synonymous with crypto, not understanding that there is a wealth of other options out there.
Bitcoin is the world’s first cryptocurrency, and it led to the birth of a new and decentralized financial system slated to change the world. It is the most expensive crypto token out there due to its sheer popularity, limited supply, and interest from institutional investors.
Early Bitcoin investors have become millionaires, but it might no longer be the most profitable asset available in the crypto world right now. Investing in Bitcoin today cannot deliver the stellar returns early investors enjoyed.
The world’s first crypto is well past its glorious growth stage. Bitcoin trades for US$30,318.80 at writing. It is down by over 50% from its US$64,000 all-time high in November 2021. Scooping up Bitcoin at these levels could deliver substantial returns if it recovers to its highest levels.
It is undoubtedly trading at attractive levels for Bitcoin bulls. However, another cryptocurrency token might present you with a far better option if you want to enjoy superior returns: Solana (CRYPTO:SOL).
Bitcoin has been going through a rough period in the last few weeks, going down by a significant margin from its all-time highs. However, not all cryptocurrencies have been underperforming. 2021 saw Solana come out as one of the top performers in the crypto world.
Many reasons have been attributed to its meteoric rise. The advantages it offers over other cryptocurrencies like Bitcoin have made it increasingly popular.
Solana’s blockchain network boasts some of the fastest transaction processing speeds in the cryptocurrency industry, clocking in over 65,000 transactions per second. With the use of a more efficient validation protocol, the cryptocurrency’s blockchain takes a lot less time, consumes less energy, and reduces transaction costs.
Not everything is perfect about Solana. The cryptocurrency has gone through several outages that have hurt investor sentiment, but only to a small degree. The superior performance it offers in terms of fees and lower costs has allowed it to compete with larger cryptocurrencies like Bitcoin and Ethereum of late.
Solana is not just competing with Bitcoin. The innovative blockchain network has become a massive player in the non-fungible token (NFT) industry due to the advantages it offers over Ethereum. The blockchain platform’s faster transaction speeds and lower costs have made it a favourite among NFT enthusiasts.
Ethereum showed the world the potential of cryptocurrencies beyond a store of value and means of exchange. The underlying blockchain technology boasts plenty more use cases than Bitcoin offers. However, it still uses the same validation protocol as Bitcoin, translating to slower transaction times and higher fees.
Solana took the best of what the first cryptocurrencies offered and made them much better. Solana trades for $49.37 at writing, and it could reach far greater heights in the coming months. It might be a far cry from being able to reach levels similar to Bitcoin. However, it has the potential to deliver far superior returns than what you can expect from the world’s first cryptocurrency in the short term.
Remember that cryptocurrency investing entails a significant degree of risk. You should ideally invest only what you can afford to lose when allocating a portion of your investment portfolio to Solana or any other cryptocurrency.
The post 1 Cryptocurrency That Could Outperform Bitcoin in 2022 appeared first on The Motley Fool Canada.
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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana.
By: Adam OthmanTitle: 1 Cryptocurrency That Could Outperform Bitcoin in 2022Sourced From: www.fool.ca/2022/06/06/1-cryptocurrency-that-could-outperform-bitcoin-in-2022/Published Date: Mon, 06 Jun 2022 12:17:26 +0000