Are you looking for investments with multiple potential? Look only at cryptocurrencies. While this asset class isn't off to a great start in 2022, its long-term prospects look good as blockchain technology improves and investors seek to protect their wealth from fiat currency spiraling inflation. Let's explore why Cardano (CRYPTO:ADA) and Ripple (CRYPTO:XRP) are great ways to bet on this opportunity.

1. Caldano

Cardano is one of several advanced blockchains that have been called "ethereum killers" because of their superior speed and scalability. While Cardano is far from the fastest network available, its long-term advantage comes from its active development team, which has hands-on experience implementing blockchain technology.

Photo credit: Getty Images.

Unlike Ether, which uses a cumbersome proof-of-work (PoW) system, where miners solve puzzles to validate transactions, Cardano uses a proof-of-stake (PoS) system, where miners use existing coins to validate transactions. PoS is faster and uses less energy than PoW, with Cardano's transaction capacity at 257 transactions per second compared to Ether's 15.

That said, Cardano's speed is dwarfed by newer competitors like Avalanche and Solana, which have transaction capacities of 50,000 and 4,500, respectively. But its active developers could help close the gap.

Input-Output HK (IOHK), the team behind Cardano, plans to increase the scalability of the platform with an upgrade called Hydra (it is unclear what the new transaction capacity will be), which is expected to go live in late 2022. While future projections should not be taken at face value, IOHK has a track record of success. In 2021, the organization partnered with the Ethiopian government to create a blockchain-based national ID system for students – an impressive vote of confidence in the team behind Cardano.

2. ripple coin

Ripple is a blockchain platform designed to help people send money across borders. While any cryptocurrency can technically fill this role, Ripple stands out for its scalability and its practical partnerships with financial institutions that use its technology.

Analysts at Research and Markets expect the global remittance opportunity to grow at a compound annual growth rate (CAGR) of 13.3 percent to $42.5 billion by 2028 as migrants send money to friends and family in their countries of origin. The market is dominated by companies like Western Union, which handles about 36 percent of U.S. customers. But Ripple could disrupt the industry with its superior speed and affordability.

According to its website, Western Union charges up to $45 for international transfers, which can take one to five business days. Ripple can process transactions in as little as 3 seconds for the cost of 0.0001 XRP tokens (each token is worth $0.62, so this is effectively free). Ripple is also faster than rival cryptocurrencies like Ether (which takes an average of 13 seconds) and Bitcoin (which takes about 10 minutes).

Ripple's developers also operate an enterprise blockchain network called RippleNet, which has partnered with more than 100 financial institutions, including American Express. The protocol is designed to help companies make cross-border payments (with the option to use XRP for liquidity), and its adoption is a vote of confidence in Ripple's technology.

Betting on a rebound

Although cryptocurrencies are in a bear market right now, this downturn may not last forever if history is anything to go by. This means investors have a good opportunity to bet on assets that can outperform the broader market when the market recovers. Cardano and Ripple will make good choices due to their scalability and strong development teams.