In Coinmarketcap.com are 1,110 crypto-currencies (maybe more). Nine of them have a market value of more than $ 1 billion and 337 have a market value of more than $ 1 million.
Do we need all these cryptocurrencies? Will the one with the most capitalization survive and all the rest disappear? Will a new cryptocurrency sweep everything else? Could all existing cryptocurrencies coexist peacefully?
When one begins to find the answers to these questions it is very easy to try to find similarities and correspondence of crypto-currencies with e.g. documentary money or precious metals.
Although there are 164 official documentary currencies around the world, the ratio of cryptocurrencies does not stand still as documentary money is artificially limited by a country's borders and monetary policy. Without borders or if many countries decided to adopt a common currency - such as e.g. in the case of the European Union - the number of currencies would decrease.
Do cryptocurrencies refer to precious metals? After all, the principle of supply and demand that governs cryptocurrencies and precious metals is largely the same - you have a specific demand for a particular item (gold, silver, platinum, nickel, etc.) and you have a supply that is provided. from mining activities based on the following restriction: the price of the metal must be higher than the cost of the discovery, extraction, and processing of this metal.
Although the principle is similar, the ratio cannot stand because (at least in theory) you have a cryptocurrency that can do everything but you do not have and cannot have a metal that can acquire the properties of other metals. So, again, in theory, cryptocurrencies could converge at some point while metals can't.
Maybe cryptocurrencies may eventually refer to apps. The comparison makes sense. Every application is good at something and every cryptocurrency is also good at something or at least supposed to do something specific. There are multiple applications that do the same thing - some better, some worse - and there are multiple crypto-currencies that do the same thing - some better, some worse, some are designed for a specific region, some are integrated with other systems that fit. a specific set of users.
And so, in the end, it might be normal to have a lot of cryptocurrencies, if we consider them to be similar to apps.
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