There are more than fifteen hundred cryptocurrencies that are registered on coinmarketcap.com, which is more than various forms of fiat currency worldwide. The common question which comes is why there are so many cryptocurrencies? As there was the only bitcoin nearly ten years back. At this phase, we have cryptocurrency in almost every sector worldwide.
The main motive of every cryptocurrency is to influence blockchain technology so they can transform areas as varied as health, energy, and data storing. As there are many cryptocurrencies already in the market there are some of the conceivable aims for this situation like many cryptocurrencies have different functionalities and the fundamental blockchain technology is the main aim we get numerous cryptocurrencies. It also offers designers a chance so they can make various types of cryptocurrencies unlike functionalities.
They keep those cryptocurrencies that act as a currency and they are a store that can also be used as a traditional fiat, many cryptocurrencies including bitcoin fall in this group. After that, some cryptocurrencies come which are having value functions. In this set of cryptocurrencies which developed as infrastructure and they also permit other cryptocurrencies to be constructed on topmost of their system.
Blockchain is not controlled by anyone and anyone who knows how the system works can use it and make their digital currency. This clarifies why there are several cryptocurrencies.
The Huge Returns
Another reason for so many cryptocurrencies narrates the large achievement enjoyed by BTC and some of the altcoins as when bitcoin was launched there were very few people who gave interest in it. It had no price and it was ignored by many people though its value remained to rise over the years even when ETH was launched it was almost valueless till 2017. It is regardless of this huge return to those who have invested their money in the ETH.
Almost every altcoin rumbled including BTC many people become millionaires in one night after that every person knew what was going on. Visit advfn.com if you want to invest in bitcoins.
Forking
The matter of forking has also subsidized the rise of the new cryptocurrencies through forking might be the key reason for the capital of various types of cryptocurrencies but still, it is a reason.
Innovation
Cryptocurrencies keep on growing as its nature of modernization and our wish of continuous development and one of thinking about this is to watch the example of the lots of applications that providers like apple and google take. There are countless of them who do similar things though we finish up having various of them. Take an example of an application that streams songs, so there is not only one there are more than a hundred but we like some or dislike some, cryptocurrency is also similar to this.
The Boom of ICO
The boom of this can also consider this as a reason to why there are too much cryptocurrency. The achievement of roughly these token auctions has individual aided to branch on more sales of tokens because of this it has become easy due to the absence of controlling checks on the server of ICO. In the last, these coins’ contributions get registered on trading exchanges in the form of cryptocurrency tokens.