The crypto market is saturated with cryptocurrencies. This has resulted in a decline in the value of the market. Although the market is over saturated, it still holds immense potential and can reach $1 trillion in value by 2020.
The crypto market has its own set of challenges to overcome such as volatility and investors’ faith in cryptos. However, this challenge can be dealt with by aligning regulations and creating a safe environment for investors to invest without putting their capital at risk.
The crypto market is oversaturated with cryptocurrencies because of the recent surge in popularity. There are some downsides to this, but there are also some benefits.
The rapid increase in adoption of cryptocurrency has led to a large number of projects trying to get investors involved – some people might say too many. As a result, it’s harder for the average person to make any money on cryptos without an understanding of cryptocurrency fundamentals.
Just as industries have been affected by the proliferation of cryptocurrencies, so has the crypto market. In this article, I will discuss why there are so many cryptocurrencies.
This oversaturation is due to a lot of risk management issues. The reason being that a lot of people have started trading in cryptos without going through proper risk management processes which ultimately allows for a lot of scams and frauds to take place.
Is the Crypto Market Oversaturated with Cryptocurrencies?
Yes and no.
All because: Compared to the current numbers, I would definitely say yes. There are about 10M of estimated people in the world currently actively using Bitcoin and other cryptocurrencies and most of them only know, more or less, Bitcoin and how it works.
There are now more than 5400 cryptocurrencies, and this is an ongoing trend as the market finds its footing. Not even accounting for such things as token offerings, security tokens offerings, and Initial Exchange Offerings makes it difficult to predict what will happen in cryptocurrency in the coming years.
Depending on the time of year, it is not unusual to see 100 new cryptocurrencies released each month. Many start with a crowdfunding campaign and become very successful
For now, the blockchain market is not yet ready for mass adoption. For the problem that is called “Blockchain Trilemma.”
So far, none of the most famous blockchains have met all three features.
One of the most important aspects of Bitcoin is that it’s decentralized and secure. However, in some respects, like mining, it’s not so much.
Ethereum same Bitcoin problem.
Other blockchains that have this goal are Quarkchain, Elastos, Seele, Zilliqa, Matrix AI Network & Harmony. I hope to post soon about it if you are interested in learning more. Stay in touch!
No, because:
The growth potential for cryptocurrencies is still enormous because it’s only 10M that are actively using them.
Right now, we are 8.5 billion people in the world and over the next 10 years that number will grow to 9.5 billion people. Ten million is 0% of all humans in 10 years!
I think the blockchain might reach 100% of the population over time, it can be applied to all fields.
Not only the financial and speculative one, even the big businesses will use blockchain technology in their industries. If this doesn’t happen, they’ll die
Private data, or that which is truly ours, can be securely stored on the blockchain thanks to its decentralized nature. The owner has full control of the data and can authorize any third party with permissions to use it.
The more of us that wake up to the problem of climate change, the more chances we’ll have to save ourselves.
but for now it’s still not safe to use that as an encouragement for your business model.
I imagine decentralized social networks that use crowd-sourcing to distribute ad revenue. What Mithril, Steemit, Scorum, Contentos, Dtube are trying to do.
NEXO is trying to improve the current payment system by offering a better alternative with brilliant technologies. I imagine that they’re being approached by companies who are probably trying to see what’s happening in the crypto market, and other smart strategies.
And so on.