Why do we need so many Cryptocurrencies?

Why do we need so many Cryptocurrencies?

Many cryptocurrencies, different functionalities The underlying blockchain technology is one reason we see so many cryptocurrencies. It provides developers an opportunity to create different cryptocurrencies for different functionalities. They allow other cryptocurrencies to be built on top of their networks.

Do all Cryptocurrencies increase in value?

Cryptocurrency can gain value on exchange platforms. It increases in value based on supply and demand. The supply of a cryptocurrency depends on how many new coins are being mined and how many current owners want to sell their coins. The demand for a cryptocurrency depends on many factors.

Do Cryptocurrencies do anything?

Cryptocurrencies have experienced significant increases in value in the last year. To be effective, currencies have to be mediums of exchange and stores of value. So, the value of a currency is in its ability to do those things efficiently and effectively: facilitate transactions and act as stores of value.

Why are there so many cryptocurrencies?

Another major reason that provides an answer to the question; why are there so many cryptocurrencies is that cryptos are built on blockchain technology. Currently, more use cases of blockchain are being invented on a daily basis. From the health sector to voting, finance, logistics, mining, supply chain, etc.

How many cryptocurrencies are there in 2020?

According to CoinMarketCap (CMC), there are exactly 6,510 cryptocurrencies as of August 19, 2020. This is quite a huge figure with new cryptos joining this list on a daily basis. Below is a list of the top 10 cryptocurrencies according to market cap available today.

What is the difference between Ethereum and cryptocurrencies?

The crypto also serves as a major store of value and a form of investment. Ethereum, on the other hand, is designed to facilitate the creation and deployment of smart contracts. Many cryptocurrencies like Dash and Electroneum is focused on helping the unbanked.

Is bitcoin the one true crypto?

Many schools of thought view it as the one true crypto with many dubbing it as the “King Crypto”. Bitcoin as previously stated was first described in a white paper published in 2008 by Satoshi Nakamoto. The crypto was then first launched in 2009, with several other alternatives like Litecoin the following suit in 2010.