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2,000 Cryptocurrencies

2018-09-26_05-38-22-2000Cryptos

2,000, this is the bar level that has just been jumped over by the number of cryptocurrencies reported on Coinmarketcap. On July 1st this number was still below 1,600 – at which date the number of deceased crypto projects was already estimated at over 1,000 – or an 18% addition without yet considering the turnover of since then  deceased currencies. But meanwhile the Bitcoin price has not budged (it was USD 6,300 at the time of posting and it is presently USD 6,400), and the market cap of all cryptocurrencies has even declined from approx. USD 250 to 210 billion, meaning that more and more cryptocurrencies are chasing less and less money. Good grief! Who needs so many altcoins and alternative tokens that are created out of thin air and disappearing into oblivion by the day. Is there any economic foundation to sustain that sort of financial rampage? How many more crypto projects need to die and how many (or few) will survive and become real use cases? This hodgepodge of altcoins and frenetic cryptogenesis appears to be a sign of overoptimistic confidence in the future of blockchain and the cryptospace that does not bode well for a proximate resumption of the crypto bull market. Instead, the bear market that started in December last year probably needs to run its course in order to shake the majority of the dodgy and precarious projects out of the coconut tree.

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