For those who are new to cryptocurrencies, you may ask, what are cryptocurrencies? According to Google, a cryptocurrency is “a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.”1
If you read the news or keep up on market trends, you may have heard Bitcoin. Bitcoin is a cryptocurrency. Over the past year, cryptocurrencies have become extremely popular. The graph below shows the total cryptocurrencies that have surfaced since quarter 2 of 2013. It wasn’t until 2017 that the rise of cryptocurrencies have taken off.
For this micro-research study, we will be looking at some of the most popular, by market cap, cryptocurrencies.
Date Pulled: 2/09/2018 12:10pm
Dataset: Raw Data
Data Pulled From: https://coinmarketcap.com
Bitcoin is by far the most popular and the highest value cryptocurrency. According to CoinMarketCap.com, the market cap for Bitcoin is $142,895,185,585.2 In December of 2017, I read a LinkedIn posting from a gentleman that asked question, “should I invest all my retirement into Bitcoin.” If you were to purchase it in January of 2017 and sold it in December of 2017, you would have done well. However, I would argue that putting all of your eggs in one basket is unwise. Because if you would have bought it at it’s peek, you would have lost loads of money.
From the graph below, we can see the Bitcoin value by date. In early 2017, the value of Bitcoin was $767.10. Later that year, it rose to $19,535.70. Within the year of 2017 alone, the value of Bitcoin increased by 25.5x in value. However, what makes this currency a volatile currency is the decrease from $19,535.70 to $6,252, which is a 68% decrease in value within 2 months.
Ethereum is the second most popular cryptocurrency with a estimated market cap of $82,830,821,467.2 The value of Ethereum is not as crazy as Bitcoin, but it is on a rapid growth. A trend that is evident from the cryptocurrency value graphs is around the new year, the value of the cryptocurrencies dropped drastically. Below is a graph displaying the value decrease of Ethereum past the new year.
What are the Top 10 Most Expensive Cryptocurrencies?
What are the some of the most expensive cryptocurrencies within the past couple of years? Before analyzing the data for this study, I thought that Bitcoin was the most expensive cryptocurrency. However, I was stood corrected when I saw the numbers. Project X went for over $2.5 million dollars each.
|Russian Mining Coin||$27,826.40||12/17/17|
For those who are investing into a Cryptocurrency, my main warning is be very cautious with what you invest in. As stated above, within the year of 2017 alone, the value of Bitcoin increased by 25.5x in value. However, from December 2017 till February 2018, there was a 68% decrease in value within 2 months.