Future of Altcoins
Categories: Crypto News
Future of Altcoins
Discussionsabout the future for altcoins and cryptocurrencies have a precedent inthe circumstances that led to a federally issued dollar in the 19th century.Various forms of local currencies circulated in the United States. Eachhad unique characteristics and was backed by a different instrument.
Local bankswere also issuing currency, in some cases backed by fictitious reserves. Thatdiversity of currencies and financial instruments parallels the currentsituation in altcoin markets. There are thousands of altcoins availablein the markets today, each one claiming to serve a different purpose andmarket.
The currentstate of affairs in the altcoin markets is unlikely to consolidate into a singlecryptocurrency. But it is also likely that a majority of the thousands ofaltcoins listed in crypto markets will not survive. The altcoin market willlikely coalesce around a bunch of altcoins—those with strong utility, usecases, and a solid blockchain purpose—which will dominate the markets.
If you'relooking to diversify within the cryptocurrency market, altcoins can be lessexpensive than Bitcoin. However, the cryptocurrency market, regardlessof the type of coin, is young and volatile. Cryptocurrency is still finding itsrole in the global economy, so it's best to approach allcryptocurrencies cautiously.