It seems increasingly likely that cryptos are here to stay. The approval of spot Bitcoin (BTC-USD) ETFs by the U.S. Securities and Exchange Commission (SEC) is a big step in the positive direction. Of course, the step does not lower the risk of exposure to the broad cryptocurrency industry. There are thousands of listed cryptos and not all will survive in the next few years. Having said that, investors can consider selected cryptos to buy and hold. These can be likened to blue-chip stocks that continue to create value.
A 2022 Boston Consulting Group report indicates that crypto users can reach one billion by the end of the decade. For new crypto users, it’s the blue chips that will be the first point of exposure. This translates into a strong case for selected cryptos remaining in an uptrend.
Let’s therefore talk about three cryptos to buy and hold forever for massive value creation.
Bitcoin (BTC-USD)
For any crypto investor, Bitcoin is a default choice for the core portfolio. The cryptocurrency has created immense value in the last decade and I remain bullish.
I believe that the Bitcoin spot ETF will encourage many investors to take a plunge in the world of cryptocurrencies. Over the next few years, it’s likely that the size of the Bitcoin ETF industry will swell.
With limited supply, there is a strong case for a big rally. Cathie Wood believes that Bitcoin is likely to touch $1.5 million by 2030 after the ETF approval. During this year, however, Bitcoin halving is due and that’s another catalyst for the crypto asset.
Another potential trigger for Bitcoin is expansionary monetary policies that are likely in the second half of 2024. Risky assets tend to surge higher as interest rates decline. There is also a strong case for rising adoption of Bitcoin as geopolitical tensions escalate in various parts of the world.
Ethereum (ETH-USD)
Ethereum (ETH-USD) is just behind Bitcoin when it comes to the blue-chip names among cryptocurrencies. The crypto looks attractive even after a healthy upside of 48% in the last 12 months. I further believe that Ethereum can potentially outperform Bitcoin in the next five years.
One reason for this view is the point that there are multiple developments impending for Ethereum. Vitalik Buterin opined in 2022 that Ethereum development will be only 55% completed after the merge. In comparison, Bitcoin is 80% completed. Therefore, as factors of transaction speed and cost are addressed in the coming years, it’s likely that ETH will surge.
It’s worth noting that the SEC has delayed the decision on Fidelity’s spot Ethereum ETF until March. If there is positive news on this front in the next few months, I expect a big rally for Ethereum.
Zilliqa (ZIL-USD)
Zilliqa (ZIL-USD) is among the smaller projects that I am willing to buy and hold. As an overview, Zilliqa is the first sharding based blockchain in the world. In this concept, transactions are broken into smaller groups and divided among the miners for the parallel transactional verification. This increases the transaction speed and Zilliqa already has a significantly lower transaction cost as compared to Bitcoin or Ethereum.
It’s worth noting that the Zilliqa project seems significantly undervalued. Further, the current APR for staking is 11.08%. This adds to the reasons to be bullish on ZIL. With 30.66% of the circulating supply staked, the rally can be ferocious.
In March 2022, Zilliqa had launched metaverse-as-a-service and ZIL coin quadrupled in quick time. Zilliqa Group has relaunched the metaverse venture and this is another potential long-term catalyst for value creation. Overall, if the bull market for cryptocurrencies sustains, I expect 10x to 20x returns from ZIL coin within the next five years.
On the date of publication, Faisal Humayun did not hold (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.
