Imagine 21,844 cryptocurrency coins in the world as at November, 2022.......!
Wow! And others are springing up while others die a natural death. With 300m cryptocurrency users in the world with about 9300 active coins then these coins are overwhelming. With about 24,300 dead cryptocurrency coins in the world today means we may be headed to a disaster unless something should be done.
New Coins....!
If new coins are there to correct the mistakes made by old coins then the better. Yet with the crushing of prices of big coins like Bitcoin as per the year 2022 is a big blow. The measures taken by FTX, the major crypto exchange, is having its toll on all cryptocurrencies.
Why Do We Have Major Price Lowering and Inactivity of Many coins?
- We happen to have a crowded cryptospace. Investors find it hard to choose on the best coin to invest in.
- Many have lost hard-earned money due to inactivity of some coins. Now it is hard to know which will thrive or not.
- Problem of supply and demand. For a coin to enable to attract more investors, it needs to be scarce. This means it has to control its supply. Then it has to create a high demand for the coin. That way is when the coin will rise in value. Inactive coins failed in this aspect.
- Limited active users. For a cryptocurrency to be widely accepted as money with a price tag, many people have to embrace the coin and accept it. Many coins just spring up like mushrooms and die I a similar fashion.
- Bankruptcy of exchanges eg the recent liquidity of FTX.
Read on.
