Determining a Cryptocurrency’s Future Power

Many cryptocurrencies have come and gone without generating any noise. They never attained any actual value beyond the cost of mining it. Others have looked promising and lured investors, only to crash and burn. So how do you determine the future of a cryptocurrency?

While you can’t ever predict with complete certainty what will happen in the future, the best indicator of a cryptocurrency’s future performance is to look at its history. If a coin has been around for a few years and still hasn’t gained any traction, it isn’t likely to. However, if a coin has been around for a couple of years, built up its own following, and has attained a degree of value against the dollar or Bitcoin, it probably does have some staying power and may be worth looking into.

Another indicator of the future success of a cryptocurrency is looking at the asset that it is connected to. The Ether has become so valuable because Ethereum has gone mainstream, and some Fortune 500 companies are beginning to use it for their programs. In all likelihood, more and more users will flock to Ethereum, thereby allowing the value of the Ether to continue to grow. While it may or may not continue to grow at the astronomical rate seen in 2017, it will probably continue to increase in value.