Cryptocurrencies, since their inception just a few decades back, have generally been rising to the top. This especially can be said about the flagship electronic currency, Bitcoins. This one, along with a few others like etherium, litecoin, Cardano, Dogecoin, tether, etc., has been thriving as the top virtual cash. But, unfortunately, the same cannot be said about the thousands of other digital coins that have been lost in this race.
Many reasons attribute to this failure of so many cryptocurrencies that have been launched with a lot of hubbubs but have died an untimely death. Exports have found over 1,000 cryptocurrencies that have faded into nonexistence; there is also 3000 similar digital money waiting to join their ranks.
Failure to Launch a New Product:
With developers trying to create the next Bitcoin in this exceedingly competitive field, the moment a new cryptocurrency exists, five other similar digital money is already present in the market. Innovative solutions are required, and new marketing ideas are also in demand. Only a few can survive in this cut-throat atmosphere of digital currencies.
The popularity of Bitcoins is not at all diminishing. Even the rise of ethereum and litecoin still doesn’t have the power to challenge the throne occupied by the flagship currency. The claim that a new cryptocurrency will replace this electronic money is not fooling anyone, and that is one of the primary reasons why so many cryptocurrencies have failed. They have tried a digital currency that is almost synonymous with cryptocurrency itself.
Developers trying to create a new cryptocurrency must understand that they should not try to create a new digital currency to displace Bitcoins. Their goal should be to create a new cryptocurrency with a different function or something better. This market has no time for old Technology repackaged as new.
Governments showing Skepticism Regarding The Security provided by Crypto:
The diminishing skepticism that Bitcoins and the likes of ethereum and dogecoin are witnessing cannot be said about other cryptocurrencies. The top 10 cryptocurrencies in the market that are contributing towards high capitalization are the only ones considered by most individuals. Not everyone in the cryptocurrency market is a digital currency enthusiast. A layperson who is entering the cryptocurrency market for the first time will automatically be more comfortable putting their faith in the digital currencies that are making headlines every day.
Even Government support towards Bitcoin seems more comforting in the eyes of most individuals. Big news media houses are writing about these top cryptocurrencies, making them a more comfortable household name. The thousands of other cryptocurrencies that are scrambling to rise to the top cannot achieve this comfort level. This is one of the biggest reasons why so many cryptocurrencies are losing their relevance, as they cannot percolate down to the masses.
The Strong Force of The Crypto Market Crushing Small Players:
It would be utopian to say that the decentralized nature of cryptocurrencies has been maintained. The digital currency had been created to help equalize the world; however, as we see for most institutions, this too has been slowly swallowed by big financial institutions. Thus, the very thing that cryptocurrencies wanted to challenge is now assimilating it in their workings.
The power of capitalization is extreme, and Wall Street has been thriving slowly but steadily, taking charge of this world of cryptocurrency. The massive multi-billion dollar forms that are now looking into the future of cryptocurrency are crushing the small digital currency coming from humble backgrounds. In front of these corporate giants, the small developers trying to build the next best cryptocurrency in the world will lose the battle as they lack resources to challenge these companies.
This extremely competitive world is exciting, and you too can take advantage of the cryptocurrencies climbing to the top. A trusted cryptocurrencies exchange and see how you can change your future with digitized money. The possibilities are endless, from making your transaction process easier to giving you a platform to generate extra income.