Currently there are different types of cryptocurrencies in the market, as a result of this, one of the most frequently asked questions people ask is why are there so many cryptocurrencies in the market? The answer to this specific question is … because there is simply the “free market” and each person or company is free to create their own projects in this regard, however, the dilemma regarding this issue are the “consequences” that are generated once a project of this type is launched.

When Bitcoin was born, in 2009, the idea was to change the financial sector anonymously, quickly, safely and without the usual financial intermediaries. Over the years, things have been changing and other new cryptocurrencies were appearing using other types of Blockchain.

How many cryptocurrencies exist?

At present there is an estimated more than 2961 cryptocurrencies in the market, however, this amount promises to increase daily, especially for the projects that implement them to be used in multiple ways. If we are new to the world of cryptocurrencies, we have probably only heard of Ethereum, Bitcoin or Dash because they are so far the best known, used and accessible through different platforms.

Despite the large amount of cryptocurrencies that currently exist, the one with the greatest impact is still Bitcoin, as it is the first to appear in the market (in addition to having the highest price). Each cryptocurrency offers its own advantages and disadvantages, however it is up to each user, business or company to adopt the one that best suits their needs (and above all that generates more confidence).

Is it good that there are so many critomonedas?

The fact that there are so many cryptocurrencies in the market has some points in favor and others against them, the positive side is that there are now more alternatives for users, which encourages “healthy competition” making there are higher quality cryptocurrencies (looking for stand out or differentiate from the competition), develop new technologies and provide greater value to the end user. The negative side is that some new cryptocurrencies use the good reputation of the most recognized cryptocurrencies (eg Bitcoin, Ethereum or Dash) to promote projects of low or no quality.

How to know if a cryptocurrency is “good” or reliable?

Although there are several parameters to choose a good cryptocurrency, the most important thing is to evaluate these factors: time and market acceptance, level of credibility of the market, people who are behind the project, control system (centralized or decentralized) and know blockchain technology that supports that specific cryptocurrency.

What do you think about this topic? Did you know there were so many cryptocurrencies?

If you want more information about buying and selling cryptocurrencies you can subscribe to our newsletter and receive the free report entitled applications of blockchain technology and its relationship with decentralized systems.

Image of Clifford Photography via under a creative commons license.

Leave a Reply

Your email address will not be published.