The cryptocurrency market has grown immensely since its early days. Cryptocurrency adoption has also skyrocketed as people have grasped the whole concept behind them and are ready to benefit from their numerous importance. There are thousands of cryptocurrencies in the market now, with more being created almost every month.
These cryptocurrencies are each created with a different goal from those designed to provide a digital currency alternative to fiat currencies to those that support payment systems, peer-to-peer trading activities, underlying protocol as well as those that facilitate secure access to goods or services in peer-to-peer trading.
As the cryptocurrency market continues to grow, new digital coins and projects will continue to emerge. However, many people believe that the influx of these new cryptocurrencies does more harm than good to the market as many of them fail completely, fueling the already speculative notion that cryptocurrencies are not something that will last. Is the rise of a multitude of cryptocurrencies a good thing for the market and investors or not?
Cryptocurrencies provide an endless pool of opportunities for investors. Digital currencies also offer their users something far more than what traditional banks have offered over the years. Having a wider range of cryptocurrencies to choose from is definitely a plus for the market as investors come in different forms depending on their money.
The endless number of cryptocurrencies to choose from is also one of the market’s strong suits. Relatively lower digital coins have the potency of fetching your investment gains just like the bigger coins would. A large number of cryptocurrencies definitely do matter and that has been evident over the years in numerous investor crypto portfolios.
However, “too many cryptocurrencies” on the market also has a downside which over the years, has been the perception of failure. There are over 5,000 cryptocurrencies now in the crypto market and as of November last year, there were 1,185 dead or failed cryptocurrencies. These numbers in the public eye are very alarming as it derails the confidence that is associated with cryptocurrency as being a long term investment.
A newbie or green investor looking to buy their first cryptocurrency will definitely wander into many thoughts when the number of failed cryptocurrencies is brought to play. Many new crypto projects are designed by crypto developers with perceived superiority attributes, only for it to be past news upon its arrival as many other cryptocurrencies possess those qualities.
The cryptocurrency market will continue to grow and the growing number of digital coins will be an inevitable part. However, projects with poor execution will continue to fail as the crypto market is already in competition with these huge and equipped financial institutions.
