Why are there so many cryptocurrencies?

Today we are going to be talking about the 1500+ cryptocurrencies on the market today and explore the question; Why are there so many ? Cryptocurrencies technically aren’t currencies. yet. But they do represent new ways of storing and transmitting digital information.

And depending on it’s functionality, it is possible for a cryptocurrency to become an every day utility an add real value to peoples lives. However, don’t let the long list of crypto’s confuse you. Bitcoin is the only real decentralized cryptocurrency. The rest are what you call ERC20 tokens. ERC20 tokens are token-based cryptocurrencies built on the Ethereum platform.

What’s so important about this? In a way, Ethereum is the complete opposite of Bitcoin. Ethereum was created by Vitalik Buterin, smart guy, but it was funded by Peter Thiel. Ethereum is essentially the centralized version of Bitcoin. And I mean come on really, does that surprise you?

DAPPS are decentralised applications. -Funny name for something that runs on top of a centralized platform. Now, if you’re patient and take your time to learn about the technology you can’t help but see that Bitcoin is really the only one worth holding. Not to say that several or many of the 1500+ cryptocurrencies won’t be wildly successful. Some certainly will, I see a world where by 2022 we have the top 10 crypto’s and that’s pretty much all that will matter.

What we are seeing right now is an emergence of people exploiting blockchain technology in order they might obtain as much Bitcoin as possible. Can you blame them?

It’s a free market, just don’t go believing promises of the next Bitcoin… We already have Bitcoin folks. A new emerging trend in crypto are called Stablecoins. Stablecoins are pseudo-cryptocurrencies in that their value is not inherent in the token itself like a Bitcoin. Stable coins are instead backed by real world collateral such as US dollars or Gold. And as such, their price is meant to be less volatile than Bitcoin but that has since proved to be true. In fact recent allegations against Tether have landed them in a court case, to prove they do indeed have the 2 billion in USD to back up their cryptocurrency as claimed.

We all need to take a big step back and keep the big picture in mind. Bitcoin was only $800 one year ago and it still has a tremendous amount of room to grow, as a network and currency. Just because the price dips a little doesn’t mean that it’s game over. Infrastructure is being developed right now that will make Bitcoin do things none of us can even dream of. Much in the same way no one could envision TCP/IP being capable of transferring QHD video at gigabit connection speeds back in 1992.

Get as much Bitcoin as you can before it becomes virtually impossible to get one, which isn’t too far away. I still think, if you have just 1 single Bitcoin by the year 2022, you’ll be a very happy individual.

Don't be this guy.