Bitcoin (BTC-USD) is a phenomenal success story. The numbers behind it are truly eye-popping. For example, between 2010 and 2022 Bitcoin provided average annual returns of 1,576% and a total return of 18,7912%.
Its market capitalization of $602 billion accounts for approximately 60% of the total capital in the entire cryptocurrency market. Despite some spectacular scams, crypto is here to stay and many incredible projects that will solve real problems are currently being built.
Thus, crypto investors are bound to continue to search for “the next Bitcoin.” To find those returns look for utility and integration into the wider financial system. That’s the key.
Quant (QNT-USD)
Quant (QNT-USD) has defined utility as the focal point of its development. It is working to facilitate interoperability between multiple blockchains. In essence, Quant connects individual blockchains through decentralized applications (dApps). dApps are Web 3.0 apps in a sense and allow users to interface with blockchains. Quant is facilitating a big idea that’s difficult to fathom completely but remains one that is hugely important nonetheless.
Another thing to note about Quant and the other cryptos listed below is that all are ISO 20022 compliant. ISO 20022 is a global standardization body that governs commercial and industrial standards. In this case, those related to financial system integration. By 2025, all financial institutions must be able to process ISO compliant payment transactions. Quant is going to be mainstream and investors should realize that and act accordingly.
Interoperability is the name of the game. Cryptocurrency is still in its Wild West phase but ISO 20022 compliance and integration will bring those that meet the standard into the mainstream of finance.
Hedera (HBAR-USD)
Hedera (HBAR-USD) has established an important first-mover advantage that makes it part of the conversation to identify the next Bitcoin. It has become deeply associated with enterprise utility. Corporations moved into crypto during the pandemic to varying degrees and continue to integrate crypto today. Hedera is among the first names that enterprises will think of as crypto opportunities increase. When it comes time to add functionality, Hedera has that opportunity because it laid the groundwork.
It is also ISO 20022 compliant which only strengthens that narrative. Larger financial institutions are developing crypto businesses in house. Hedera may not have a great opportunity to break into those enterprises. However, SMEs don’t have as many resources as the big banks do. Sooner or later, they’re going to seek crypto integration and functionality en masse. That is among the best reasons to invest in Hedera overall. The project is preparing for fintech opportunities that are being established by the day. Hedera’s ISO 20022 compliance is a crystal clear example of its goals and direction and shouldn’t be ignored.
Cardano (ADA-USD)
Cardano (ADA-USD) has also ticked the ISO 20022 compliance box. Cardano is being developed with the goal of long-term success as its primary purpose. Long-term success means a reliance on computer science and empirical evidence to guide its development. Unsexy stuff at its heart. Perhaps that’s why Cardano doesn’t get much attention overall. It’s the polar opposite of meme coin nonsense and aims to build utility first and foremost.
It’s easy to imagine that the developers at Cardano understand that the game is really about wider integration. Cardano, and any other long-term winners, are going to win by being part of the evolution of money. That means development ultimately is evolution and integration into the financial system, not a wholesale replacing of the financial system. I’m sure that the empirical evidence draws similar conclusions. Cardano is sure to listen and that’s why it’s got a great chance of winning in the long term.
It may not exactly fit the ideal frame of “the next Bitcoin” in that Cardano’s value can’t realistically increase to $28k. It currently trades for less than 30 cents. However, it does have the potential to grow over the next decade like Bitcoin did from 2010-2020.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
