Looking for the next Bitcoin? 2 cryptocurrencies to buy now

About 10 years ago, Bitcoin (BTC 3.02%) had a total market cap of just $111 million. There have been many ups and downs since then, but the overall trend has remained up. The oldest cryptocurrency

About 10 years ago, Bitcoin (BTC 3.02%) had a total market cap of just $111 million. There have been many ups and downs since then, but the overall trend has remained up. The oldest cryptocurrency nowadays is worth around $392 billion – with a B. If you had invested just $1,000 in Bitcoin ten years ago, it would be worth a life-changing $3.5 million today.

Bitcoin is a respectable investment vehicle in 2022, attracting the attention of deep-pocketed institutional investors. However, the days of thousand-fold returns in just a few years probably don’t go back to the most mature name in the crypto industry. It is therefore natural to search for the next crypto name that could make you rich quickly.

I should note that extreme returns always come with larger than life risks. Truly gigantic returns can only come from small, untested and relatively unknown cryptocurrencies. This group also contains many names that will reach for the stars but only reach the treetops at best. Most cryptocurrencies at this level will only see negative long-term returns.

But that’s the name of the game. A handful of big winners can make up for many missed out, and you’ll never find the right bets unless you look for them.

So let me show you some cryptocurrencies that could make you a lot of money over the next decade if all goes well. Just keep in mind that their downside risks are just as huge and you should keep your speculative bets fairly low. These are not the kind of names you should bet the farm, the tractor and all the chickens on. A few eggs will suffice, relatively speaking.

Filecoin: storing data in the blockchain

Suppose you want to store data in the cloud, but you don’t want to rely on one of the classic cloud computing giants. Your files must be strongly encrypted and unreadable, even for the data host. You should be able to access this ultra-secure data very quickly. Storage service shouldn’t be expensive either, and you want to make sure data can’t fall through internet cracks, lost forever to something as simple as a clumsy keystroke.

You will find that filecoin (THREAD 2.35%) check all these boxes. Filecoin is a distributed blockchain network that allows users to store digital data on a peer-to-peer global chain. Storage providers provide the physical storage space for your valuable data and compete for your business by charging low fees on a free market platform. Financial incentives, in the form of Filecoin tokens, also ensure that each storage provider will fight to keep your data safe and available. Storage fees are automatically refunded to the customer if a file is lost or corrupted.

It’s all about the money, and the Filecoin token is the cornerstone of this innovative storage service. The network can power financial services, digital media platforms and private file storage tools. In one of the most popular use cases to date, digital content creators rely on Filecoin to store actual media represented by non-fungible tokens (NFTs).

This idea is full of promise. Filecoin could become a massive service provider in the world based on the blockchain of Web3. The current crypto market value is only $1.8 billion today. If it turns out that Filecoin can sustain a trillion-dollar industry in the long run, that would multiply early investments by 500 or more.

I can’t promise that the SAN and its Filecoin token will skyrocket, but I’m not entirely sure either. won’t. Holding your breath until that vision becomes reality is probably bad for your health. Still, Filecoin seems like a good place to put a handful of cash that you won’t need for the next decade.

Zcash: A privacy-conscious version of Bitcoin

The privacy-enhanced bitcoin clone known as Zcash (ZEC 3.13%) could also make big waves over time.

This crypto offers many of the same features as Bitcoin and is built on the same fundamental code. However, this version of “digital gold” comes with a few extra features that should arguably make Zcash more valuable than the base Bitcoin currency.

This cryptocurrency supports several types of transactions.

  • So-called transparent transactions display sender and receiver addresses and are very similar to sending or receiving Bitcoin.
  • Protected Zcash addresses hide the identities and account addresses of everyone involved and are invaluable when you need complete privacy.
  • Hybrid type Zcash transactions hide some identifying details and show others and come in handy when you need to audit a sensitive cash flow.

Many governments dislike fully protected Zcash transactions, arguing that criminals can make money while hiding behind the encrypted data stream. Therefore, popular cryptocurrency exchanges like Coinbase and Robinhood Markets allow you to buy and sell Zcash tokens today, but they only support transparent transactions. This quirk essentially removes the most important difference quality of this cryptocurrency, limiting the long-term value of the Zcash system as a whole.

This crypto could actually overtake Bitcoin one day, but only if lawmakers around the world accept the existence of truly anonymous digital payments or if Zcash finds a way around the privacy issue. And that may very well never happen. However, it is far too early to give up on this dream.

Imagine a world where consumers and businesses are free to make truly anonymous payments with Zcash, like using an unmarked gold bar or a massive dime bag. In this scenario, this billion dollar cryptocurrency could eventually be worth several trillions of dollars. Again, this could take a while, if it happens at all. Remember what I said about making small investments in these highly speculative names and you’ll be fine anyway.

Anders Bylund has positions in Bitcoin, Coinbase Global, Inc. and Zcash. The Motley Fool holds positions and endorses Bitcoin and Coinbase Global, Inc. The Motley Fool has a Disclosure Policy.