At the time of writing, there are almost 2000 cryptocurrencies in circulation. These digital currencies can be used to pay for online services such as casinos, betting, and mobile bingo, as well as on certain e-commerce sites. A transaction that is executed with a cryptocurrency is unique in the fact that it is verified through the use of cryptography and once it has been made, it is logged in a database and cannot be changed, edited, or tampered with in any way.
Will crypto prevail?
Back in the 1990s, there were several attempts at creating virtual currencies, but nothing worked or came to real fruition until 2009 when Bitcoin burst onto the scene. Created by the anonymous developer Satoshi Nakamoto, its value has increased at a meteoric rate, and its popularity has sparked the introduction of countless other cryptocurrencies and platforms over the last nine years. Today, many are asking whether Bitcoins popularity will prevail, whether it will be replaced by other coins, or whether the concept of cryptocurrencies will die out altogether.
Popular opinion would suggest that only the main cryptocurrencies will survive in the long term and the smaller, less established ones will crash and burn, due to a lack of interest or requirement for their purpose. This is because many of the almost-2000 coins on the market are very similar in the way that they work and they don’t bring any new ideas, concepts, or services to an already full table. It is highly likely that any coins that don’t have a unique selling point will become completely superfluous to requirements and will be ignored in favour of those offering something special. Although the value of Bitcoin has dropped a bit in 2018, it remains the strongest cryptocurrency on the market due to its history and reputation. For this reason, it seems likely that it will survive the year and continue to thrive as time goes on.
Differing of opinions
There are, however, no shortage of naysayers that have jumped at the opportunity to publicly decry cryptocurrencies. Take, for example, the governor of the Bank of England who said they are a scam and a leading Goldman Sachs analyst who went as far as to say that he believes Bitcoin will reach a value of zero shortly. Many believe that these critics are only critics because they have a vested interest in crypto’s failure, and for every critic, there are figures such as the CEO of Pantera Capital who believes the value of a single Bitcoin will peak at around $500,000. He also added that the value of some of the other leading coins such as Ethereum and Ripple would stabilise and continue to grow in the coming months, a statement in direct contradiction of Goldman Sachs.
While it seems that crypto will survive the year, that doesn’t mean that 2018 will be without its challenges. Issues such as regulations, safe storage, and maintenance of platforms will be integral to their continued success. Innovation and development must be continuous to keep up with demands and popularity, and this could pose a problem for the smaller currencies with fewer resources.
Survival of the fittest
Cryptocurrencies, by their very nature, are volatile and unpredictable and it seems that in this industry, the phrase “survival of the fittest” will ring especially true. In a market where coins can crash at any moment, it seems that the ones that enjoy widespread adoption, as well as being accepted as payment methods by more vendors, are the ones that are likely to be here for the long run.