Thousands of cryptocurrencies are likely to collapse, and the number of existing blockchains will also decline in the coming years, several cryptocurrency executives have said.
Today, there are more than 19,000 cryptocurrencies and dozens of blockchain platforms. A blockchain platform, such as Ethereum, is the technology on which many of these different cryptocurrencies are based.
The recent collapse of the stabelcoin terraUSD algorithm and the Luna cryptocurrency has brought to the fore the debate over the thousands of cryptocurrencies that exist and whether most of them can survive.
The cryptocurrencies and the “bubble” dotcom
“One of the results of what we saw last week with the Terra issue is that we are at a stage where there are actually too many blockchains out there, too many cryptocurrencies. And that confuses users. And that also puts some risks for users. said Bertrand Perez, CEO of the Web3 Foundation, on CNBC.
“As in the beginning of the internet, we had a lot of dotcom companies and a lot of them were scams, they had no value and a big liquidation was done on all of them. And now we have very useful and legitimate companies.”
Brad Garlinghouse, chief executive of cross-border payment company Ripple, said there were likely to be “dozens” of cryptocurrencies in the future.
“I think there is a question as to whether or not we need 19,000 new coins today. In the world of documentary money, there are probably 180 coins,” he said.
Guggenheim chief investment officer Scott Minerd created an even more pessimistic mood last week when he said most cryptocurrencies were “useless” but that Bitcoin and Ethereum would survive.
At the same time, Bitcoin has fallen more than 50% from a record high in November, with many other digital currencies falling sharply from their all-time highs.
Many different blockchain platforms, from Ethereum to Solana, compete for industry leadership. But Brett Harrison, managing director of the FTX US cryptocurrency exchange, said not all of the hundreds out there today will survive.
“When you think of blockchains there probably won’t be hundreds different in 10 years, I think there will be some clear winners for different types of applications,” Harrison said.
“And we will see the market clear up over time,” he added.
Source: Capital
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