Do you know the number of cryptocurrencies that are available on the marketplace today? Surprisingly, there are 1583 cryptocurrencies listed, and people are all investing in almost all of them with a motive to earn profits. The number is more than the varied types of fiat currencies available in the world. Isn’t that huge? Well, have you heard the names of different cryptocurrencies available? Many are not aware of the names even, and there exist so many of them.
A common question is asked by most people, which is, why are so many cryptocurrencies available? A few years back, one crypto used to prevail, which was Bitcoin. Now the market is flooded with varied options. A cryptocurrency is now virtually available in almost every sector of the industry.
The principal aim of these cryptocurrencies is to leverage the technology of blockchain. Several areas are aimed to revolutionize that are as diverse as energy, data storage, health, security, payment, social networks, etc. So many cryptocurrencies already exist, so what are the reasons possible in the current scenario. Different functionalities are contained in different currencies. The main reason behind having so many options in cryptocurrency available is blockchain technology.
Hence, opportunities are provided to different developers to produce different cryptocurrencies for varied functionality. The cryptocurrency functions as currencies as well. They are used generally as a store of value and much likely used as a traditional fiat. Bitcoin and several other types fall under this particular category. Check alem.de and find more about bitcoins and possibilities to mine them.
No one controls blockchain technology. It works in this way that anyone who knows the working of technology, can merely use it and develop their virtual currency. Blockchain technology was used to produce Bitcoin.
Soon after, other developers realized that by exploiting the same technology, they could develop a better version than the original one. Early, the list kept growing, and all were trying to build something similar to Bitcoin or Better exclaims profit of bitcoins. Hence, it led to the creation of so many cryptocurrencies that are all present in the marketplace today.
Let us know a few of the big reasons as to why so many cryptocurrencies are introduced.
Tremendous Returns
It is one of the primary reasons as to why there are so many cryptocurrencies introduced. Bitcoin and a few other altcoins enjoyed considerable success. The response was overwhelming, and it is one of the reasons which compelled other developers to come up with innovative ideas. Initially, when Bitcoin was introduced, not many people showed interest in it, and not many paid attention.
Bitcoin has no value in the very beginning. Several people disregarded it or never bothered to find out what it was and how it is helpful. Gradually, its importance continued to appreciate over the years. More and more people started to know about bitcoins and its benefits.
Yet, after 2017, bitcoin picked significant momentum. Bitcoin, along with other altcoins, boomed tremendously. People who invested in Bitcoin, became millionaires overnight, as it rose to about $20,000 BTC. It was it’s an all-time high, and people danced with joy. Soon they came to know what was going on. You can quickly get a lot of information on cryptocurrencies online if you want to dig deep. You will also find several ways to buy different coins from various sites.
Innovations
There was a tremendous increase in Cryptocurrencies because of its innovative nature. Moreover, people also look for constant improvement in things, and we all desire enhancement. These were the primary reasons that made cryptocurrency so famous in quite less time. You can know about it in a much better way. Think of it in this way; there are several applications that Apple and Google have. Most of the apps are used to do the same thing, but companies have still produced so many of them.
Let us take an example of an app that is used to stream music. Does the play store or app store have only one app to perform the task? No, there are plenty available. Some love one, others love another, and many do not like some. Still, several apps are developed for streaming music, and they will keep coming from time to time.
This is the same thing how cryptocurrency is like. Several cryptocurrencies are available with smart contracts, and they work the same way. They are continuing to emerge more and more. The only thing that is done is a few tweaks in the elements of the protocol. There are nowadays several types of tokens available that run on the same kind of network.
ICO Boom
The ICO boom is another primary reason behind introducing so many cryptocurrencies along the line. The success achieved behind the sales of such tokens has only resulted in a spur on more number of token sales. There is a lack of checks in the ICO ecosystem. In the end, the coin offerings are listed on trading exchanges and are known as crypto tokens. With the introduction of a thousand successful ICOs, we will have cryptocurrencies that are even thousands in number.
Moreover, having thousands of cryptocurrencies is not at all bad. However, the role that each cryptocurrency plays in the advancement of society is what matters the most. Several are available in the market, the main objective of which is to be used as speculative tools. However, many may fail along the way when the bubble bursts. In the end, we will only be left with just a handful of options to help achieve mainstream adoptions.
Final Thoughts
Varied types of cryptocurrencies are available because they differ in the role and functions that they play. ICO is also a fast way to make lots of money. The logic behind the introduction of so many cryptocurrencies is just simple. Some several companies and organizations are adopting blockchain technology in their payment system. Several are also invented to lure people into investing in coins.
So many cryptocurrencies are introduced, but they have different objectives. Bitcoin was the first virtual currency, and now many are developed with the same technology.
