2022 should see a rapid maturation rate of the global crypto industry, industry experts believe. Several nations are trying to find ways to regulate the crypto space, without having to restrict activities related to it entirely. As the crypto space is seemingly poised for further expansion, let’s take a closer look at the elements of this sector.
In previous editions, we covered the best Web 3.0 cryptos, the best Gaming & Metaverse cryptos, the top 5 public blockchains and the best decentralized finance (DeFi) cryptos.
Today, let’s talk about the best medium of exchange cryptos for 2022.
What are medium of exchange cryptos?
Crypto Mediums of Exchange are those that can be used to buy and sell items (physical or virtual) or that can be quickly converted into “cash”. These cryptos usually have a higher volume to market capitalization ratio (VMR) than other cryptos.
In my opinion, the most important medium of exchange cryptos for 2022 are:
- Bitcoin (BTC)
- Bitcoin Money (BCH)
- Dash (DASH)
- Litecoin (LTC)
- Monero (XMR)
- ZCash (ZEC)
To note: Fiat-pegged stablecoins, e.g. Tether (USDT), are also used as a medium of exchange but have been excluded from this list.
The table below shows the main metrics of these cryptos:
|Last name||Price||Market capitalization|
|Bitcoin (BTC)||$37,000||$705 billion|
|Bitcoin Money (BCH)||$294||$5.6 billion|
|Dash (DASH)||$94||$994 million|
|Litecoin (LTC)||$108||$7.5 billion|
|Monero (XMR)||$144||$2.6 billion|
|ZCash (ZEC)||$90||$1.2 billion|
Source: CoinMarketCap.com (rounded)
Best Medium of Exchange Cryptos for 2022
Bitcoin was invented to be a purely peer-to-peer version of electronic money that would allow online payments to be sent directly from one party to another without going through a financial institution.
The first real-world bitcoin transaction took place on May 22, 2010, and involved the exchange of 10,000 bitcoins for a $25 pizza (about 1,875 rupees). On September 7, 2021, El Salvador became the first country in the world to recognize Bitcoin as legal tender. Today Bitcoin is accepted by millions of businesses around the world.
Bitcoin transactions are considered pseudo-anonymous since the Bitcoin blockchain is transparent – anyone who knows your address can see the details of any transactions you have made. The Lightning Network, which is a second layer for Bitcoin, increases the privacy of Bitcoin transactions.
2. Bitcoin Cash (BCH)
In July 2017, Bitcoin (BTC) miners representing over 80% of Bitcoin’s computing power voted to incorporate SegWit2x (separate witness) technology to improve Bitcoin.
Many miners and developers, who did not want SegWit2x to be introduced, launched a hard fork and created a new currency – Bitcoin Cash (BCH).
BCH has its own blockchain and processes transactions faster and cheaper than BTC.
3. Dash (DASH)
Dash (digital currency) is one of the first cryptocurrencies (born in 2014) and is a fork of Litecoin (LTC). It was created to be an “enhanced version of Bitcoin” by providing enhanced privacy and faster transactions.
Some of Dash’s unique features are:
- Masternodes: These improve network availability and efficiency. They also handle governance, secure storage of user data, and instant and private transactions.
- InstantSend: which allows instant payments.
- chain locks: which make the blockchain instantly immutable.
- Private shipment: which allows additional optional privacy for transactions.
4. Litecoin (LTC)
Litecoin (LTC), also called bitcoin’s younger brother, is a popular medium of exchange because it enables fast, secure, and low-cost payments. It is accepted by thousands of merchants worldwide.
Litecoin is a fork of Bitcoin Core source code and is also referred to as “Bitcoin lite”.
5. Monero (XMR)
Monero (XMR) allows private and anonymous transactions and is one of the most widely used darknet currencies in the world. It hides senders and receivers. It is said that one of the co-inventors of XMR was Bitcoin inventor Satoshi Nakamoto.
Unlike Bitcoin, XMR is completely fungible. By default, Monero hides details about senders, receivers, and the amount transferred. Stealth addresses are created for each transaction and are only used once.
6. ZCash (ZEC)
Zcash is a “private coin” and by default its transactions do not reveal sending and receiving addresses or the amount sent. Optionally, this data can be disclosed for auditing or regulatory compliance purposes.
Zcash uses zk-SNARK zero-knowledge proof technology. This allows nodes to verify transactions without revealing sensitive transaction information.
Rohas Nagpal is the author of the Future Money Playbook and chief blockchain architect of the Wrapped Asset Project. He is also a retired amateur boxer and hacker. You can follow him on LinkedIn.
Cryptocurrency is an unregulated digital currency, which is not legal tender and is subject to market risk. The information provided in the article is not intended to be and does not constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss resulting from any investment based on any perceived recommendation, forecast or any other information contained in the article.