It’s no secret that the value of cryptocurrencies fluctuates wildly.
Many analysts believe that the majority of cryptocurrencies will eventually go extinct. In fact, they claim that in the next ten years, 99 percent of all cryptocurrencies will collapse.
Cryptocurrencies are prone to failure for a variety of reasons
Why Are 99.9% of Cryptocurrencies Going to Zero?
The first issue is that there are no regulations in place, which allows fraud to flourish. That’s why we keep reading about frauds, rug pulls, and expertly organised cons like the TerraUSD stablecoin collapsing the whole cryptocurrency market in a matter of 48 hours.
Second, many cryptocurrencies are clones of previously successful coins with no unique value proposition or differentiating characteristics.
Finally, the vast majority of cryptocurrencies are unbacked by any real asset and are not employed for any legitimate economic purpose, making them simply speculations.
Despite the hoopla, the majority of cryptocurrencies will fail and eventually disappear.
Cryptocurrency proponents trumpet it as the future of money, but there are a number of reasons why it will not be.
Cryptocurrencies are extremely volatile, with prices constantly fluctuating. Simply because of their volatile price fluctuation, they are unsuited for use as a currency.
The majority of crypto enthusiasts keep this information hidden. However, no company wants to take a payment that could be worth half as much the next day.
So, what happens to all of the bitcoin transactions?
The majority of firms, on the other hand, convert cryptocurrency to fiat money as rapidly as feasible. If a company wishes to take crypto payments, it is another step for them to do.
Furthermore, simply because a business accepts cryptocurrency payments, buyers should not expect the owner or workers to be crypto experts.
This is most likely one of the reasons why crypto hasn’t gained traction in the business sphere.
There are more than 4700 Cryptocurrency are available
According to CoinMarketCap, there are presently 4782 cryptocurrencies listed on the platform, with a market valuation of $240.3 billion. All of this is happening with Bitcoin commanding 66.4 percent of the market.
This astounding statistic is due to the ease with which anyone may build their own cryptocurrency, launch it, and attempt to persuade a few users to participate in their endeavour.
The flip side of the coin in terms of how easy it is to create a cryptocurrency is that many of them start out as clones of other cryptocurrencies.
Investing in cryptocurrency is similar to gambling
Despite the fact that investors have invested billions of dollars into cryptocurrencies, they risk losing their money due to the lack of insurance and the inherent danger of zero returns.
Many crypto traders use borrowed funds to make large bets on the future value of cryptocurrencies. They can make large profits if they accurately estimate the movement of the coins. However, if they are incorrect, they will lose both their starting capital and the money they borrowed. Within the monetary system, they are being pushed deeper into debt.
It’s a high-risk form of speculation that contradicts money’s traditional role as a store of value.
Cryptocurrencies that do not address real-world issues will perish
Because of the growing interest in cryptocurrencies, the most recent releases can persist for several months or even longer. Indeed, investors continue to hope for the discovery of a new Altcoin that would allow them to get a 100-fold return on their investment.
Cryptocurrencies that do not address real-world issues have no long-term value for their consumers.
The usability of a cryptocurrency is its main strength. In general, the more beneficial a cryptocurrency is, the more likely it is to persuade a large number of users in a long-term manner.
99% of Cryptocurrencies will go to zero
“Burn it to build it,” as one of the most well-known tech sayings goes. Founders and engineers will both “burn” earlier work in order to create a stronger product or firm. It’s an important phase in the process of making something worthwhile.
The same thing is happening with cryptocurrencies. They may have to fail in order to succeed. Not every suggestion will be successful. Not every coin is a valuable jewel just waiting to be discovered.
There are a lot of coins on the market that have no use. These are the dotcoms of the 2000s: a business model that is being implemented despite a consumer’s lack of need or desire.
Some cryptocurrencies are going to be successful. However, the vast majority, between 90 and 99 percent will go to zero.
Only roughly 50 real-world problems can be recognised and handled out of the 4700 cryptocurrencies on the bitcoin market today. In fact, the majority of cryptocurrencies on the market are vying for the title of industry leader.
Users don’t need five distinct platforms for Smart Contracts and dApps, or a dozen different cryptocurrencies to choose from as a medium of exchange, thus many of them will go away in the future.
Leave a Reply