Cryptocurrencies: A Wild Ride Ahead?

As I sit down to write this article, I can’t help but think about the rollercoaster ride that is the world of cryptocurrencies. Bitcoin, Ether, and XRP - the three largest cryptocurrencies by market share - have been on a wild ride lately, with prices fluctuating wildly and investors holding their breaths.

Understanding Cryptocurrencies

For the uninitiated, a cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. It’s a mouthful, I know, but essentially, it’s a digital form of money that uses advanced math and computer science to secure transactions.

Understanding crypto market cycles is key to navigating the ups and downs.

Bitcoin: The OG Cryptocurrency

Bitcoin was the world’s first cryptocurrency and decentralized digital currency. The first bitcoin transaction occurred in early 2009, and since then, it has grown worldwide. Bitcoin’s price fell to its lowest level in nearly two months this past week, dropping as low as $60,000. Despite this, BTC is currently up ~40% year to date.

Bitcoin’s price drop has investors on edge.

Ether: The New Kid on the Block

Ether, on the other hand, is another cryptocurrency that runs on the Ethereum blockchain platform and has the second-largest market share. Despite being the newest of the three discussed in this article, with its launch in July 2015, Ether’s price dropped to its lowest level in over a month this week, hitting $3,350. ETH is currently up ~44% year to date.

Ether’s price drop has investors wondering what’s next.

XRP: The Underdog

XRP, which is owned by Ripple and launched in 2012, was one of the larger cryptocurrencies for some time until new coins joined the market. We’ve included it in this article for reference. XRP is currently down ~17% year to date.

XRP’s price drop has investors questioning its future.

The Battle for Supremacy

An index has been created to chart these three cryptocurrencies together, considering their significantly different pricing histories. Ether tops the chart, i.e., the price of an ether has changed the most out of all three cryptocurrencies.

The battle for supremacy in the crypto market is heating up.

What’s Next?

As I look to the future, I can’t help but wonder what’s next for these three cryptocurrencies. Will they continue to fluctuate wildly, or will they stabilize and become a more reliable form of investment? Only time will tell.

The future of cryptocurrency is uncertain, but one thing is for sure - it will be exciting.