Less than half of cryptocurrencies today serve a useful purpose
According to a news report by Invest in Blockchain, there are far too many cryptocurrencies with no fulling value. There are overv1000 cryptocurrencies today, yet only around 40 cryptocurrencies today have been found to have working products. A study was conducted by evaluating the Blockchain projects, like the coins release history, and comparing completed features against features which were expected to come online. A “working product”, in this case, is defining an active and available product to the public.
A Study on Shit Coins
The study arose from the fact that in 2017 there was an array of cryptocurrencies, being build which made the price of the market rise tremendously. The surge in cryptocurrency also made way for an increase in Initial Coin Offerings(ICOs) many of which were indistinguishable from other projects getting started in the industry. As an investor, you are focused on the long-term success and the reliability of that investment opportunity. This propagated the rise of “shit coins” as is popularly known within the community. The definition of a “shit coin” is a coin that has been created on the blockchain but shares no real value other than getting in some quick money from the fiat system. But they hold no real future value in order for that coin to continue on providing value to society at large.
Value provision in the Cryptocurrency space
Though many of the top 100 cryptocurrencies have been deemed as non-functioning or lacking in development. They are all built upon the same blockchain technology which brought bitcoin to life in 2008. This does not mean that all currencies share the same value and value proposition as bitcoin.
Invest in blockchain found a few projects that are most like to be of the biggest impact were Bitcoin, Litecoin, Ethereum, Zcash and Bitcoin Cash. These cryptocurrencies bring features like built-in messaging services, secure transaction technology, investment opportunity to individuals globally and privacy.
This correction period that the market is currently having, maybe a speculative bubble or it may not. But the market contraction is doing what all markets do in this phase which is burning off overgrowth and reduce inefficiencies within the systems.
This may seem similar to the 2014 recession in the app markets, the 2008 market crash and the dot-com bubble of the 90s. This got rid of a lot of redundancies and inadequate investments in the market.
The cryptocurrency market is not going anywhere but it does seem to need a balance in order to continue growing at a healthy pace. Allowing value to rise and dominate the global currency market.
Can you adjust to the fast-moving blockchain industry and value creation? Let us know your thoughts in the comment section below
If You Liked This Article Click To Share
