I associated myself with Bitcoin or Blockchain technology like 6 years back. If I talk about that time, we had a large number of coins(around 600-700) and there are a lot of coins which have some utility if not all. If I talk about today there are around 9000 tokens. Like in just 7 years the number of coins has increased by 15X.
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I am talking about the coins which are active today, there might be a lot of coins which have come and gone after it was not successful. The question is does more and more AltCoins are actually a threat to blockchain technology. The problem is when you have a coin, a lot of people might invest it and once it goes down a lot of people's money is lost. The money which was supposed to be in Bitcoin is distributed to these coins and thus the money is actually lost.
I am not saying having an AltCoin with a good side chain is bad. Actually, a lot of SideChain has solved the problem with Bitcoin and Ethereum cannot. Take Hive for an example, if I only take transactions into account, Hive is much faster and more economical than both Bitcoin and Ethereum so yeah the biggest problem with both Ethereum and Bitcoin is solved with Hive itself. But the problem is if 9K Altcoins does the same then it's a problem right?
Similarly, if we see on Hive too, we have a SideChain like Hive Engine Tokens. It is one of the best things which have happened to Hive. But again if I go to the Hive Engine, I see around 883 tokens. I know most of them are just created and left Idle, but if I see some activity, I can see around 150 tokens which had some activity in the last 24 hours. So do we actually have so many use cases of these coins, some might have and some not.
Now if Hive Engine has 150 tokens think about all the side chains and all the altcoins associated with it. I am not saying that we have a problem with it. But since more and more coins are coming up more and more scam coins are coming up too. Out of those 9K tokens, there might be 500 tokens which are just scam tokens. The actual problem these altcoins bring is that people move their money from main tokens to these pumps and dump coins or scam coins. The money which was supposed to stay with actual utility coins is actually moving to these non-utility tokens and thus making a bigger threat to the blockchain as a whole.
What do you think about it?
