Why there are so many Coins and are they Really Needed ?

Why there are so many Coins and are they Really Needed ?

Cryptocurrency is an exciting topic for all those who are interested to learn about it. But there are things about it which can make a stock investor wary. The crypto coins in the market are many and increasing at a dizzying rate.
On March 16th, 2018, there were 1,658 crypto coins in existence. On 19th April 2018 (a month after), the number had increased by 72. The increase is at an average rate of 5 new crypto coins every two days.
Hundreds of the new cryptocurrencies are using the blockchain technology. Some are carefully designed and launched and are set to disrupt almost every other field you can think of. But it is gambling which seems to have adopted the use of cryptocurrency in a serious manner (click here to read more on this topic).
There are now several casinos spread across the world which only accept Bitcoin and a few other cryptos. Many of the online gambling operators have now added crypto as a means of payment.
There are some experts who say that of all the cryptocurrency transactions happening, 60% is through poker, casino and betting websites. More than 330 crypto transactions are executed by online gamblers in a single second.

Is there a need for this high number of coins?

The relevance of a cryptocurrency is determined by what it is designed to achieve. The team behind the crypto must also have worked extra hard to convince people around the world why their project is necessary in the current world and why they should invest in it.
But this is not always the case when the coin is listed as crypto investors are not really looking to share the future profits a project makes but rather its volatility so that they can reap when its value fluctuates. Many investors will lose money while some will gain.
Many people will not look beyond the top 10 cryptos when they are looking for a reliable crypto to invest in. But then, while Bitcoin is at $140 billion in market capitalization, the next ten cryptos’ total value can’t reach this figure. One can only imagine the guess how low the number 1,000 crypto is worth in the exchanges.
Don’t forget that Bitcoin is as volatile as they come. It was just 3 months ago that it was commanding a market cap value of over $700 billion.
While many cryptos make sense in what they are meant to do, there are just too many of them which end up not amounting to nothing much. On April 19th, 2018, the 98th crypto in the list of the highest market cap coin was Enigma.
Its market valuation stood at $150 million. This is a reasonable value considering that there is a crypto whose total market value is $50,000 and it seeks to go global as well as be considered an alternative currency by casinos.