Why So Many Crytpos, And Does The Market Need Them All?

market with so many cryptos
Why So Many Crytpos, And Does The Market Need Them All?

Every day there’s something new and exciting to learn about the world of cryptocurrencies but you’ll always find seasoned investors acting carefully in an attempt to avoid making mistakes. Cryptocurrencies continuously change and evolve, and grow in numbers even to the point where it seems there are too many to choose from, added to which their rates rise and fall like a roller coaster.

Last month, on March 16th, there were 1,658 cryptocurrencies in the market, and in just one month (by April 19th), that number had grown significantly by 72 more virtual coins. At this rate, five new coins are born every 48 hours.

Plenty of these new cryptocurrencies use blockchain technology and many of them are intricately designed to fit in different sectors of industry, in each and every division you could ever imagine.

One field that has been gaining significant adoption of blockchain technology is gambling. There is currently a group of casinos around the globe accepting payments with Bitcoin and other virtual coins and many online gambling platforms now accept this form of money.

Research shows that from all of the existing transactions in the network, at least 60% happen in the gambling field, with gamblers deploying around 330 operations with cryptocurrencies each second.

Are this many coins needed?

To answer this question, it is necessary to point that the purpose of each crypto coin defines its importance. Much time and resources are poured into a coin launch to convince people of the benefits of their coin, and why investors should bet on it.

This is not the case when a coin becomes listed on the market. Investors seek volatility in a cryptocurrency so they can reap the benefits once the market is on the up. In practice, most investors don’t look beyond the first ten coins on the market.

Although Bitcoin has the market capitalization of $140 billion, other cryptos can’t even get close to this number, so it’s easy to imagine how tiny the figure is for cryptos that are more than 1,000 in number.

Bitcoin may be volatile but it continues its journey as leader of the market, and there’s good reason for this: investors aren’t hunting a coin with great benefits which are accomplishing their purpose, they look for a cryptocurrency with ups and downs that savvy trading can translate into returns.