Why are there so many cryptocurrencies

How Many Cryptocurrencies are There?

  • Huge returns. Ten years ago, not many people were really interested in investing in cryptocurrencies, so there were few of them. But the extreme surge of the value of Bitcoin, which made its holder literally milliners, received a lot of attention from those who weren’t interested earlier. Now more people invest in cryptocurrencies, so more of them are popping up.
  • Forking. Well-established cryptocurrencies lead to the creation of new cryptocurrencies. This is what happened when Litecoin, Bitcoin Cash, and Bitcoin Gold have branched off Bitcoin.
  • Innovation. Cryptocurrencies are progressive technologies that appeal to wide audiences. But we cannot like the same innovation, we need something new to enjoy and benefit from. This is what happened to Ethereum, which was initially started as the first platform for smart contracts. Its innovative concept quickly became popular and led to the development of new platforms, applying the same technology.
  • The ICO boom. The first coin on ICO is supposed to be Mastercoin, which appeared in 2013. The boom in its sales made other coins follow the same way.

Types of Cryptocurrencies

  • Payment-focused cryptocurrencies.
  • Stablecoins such. Stablecoins are backed by fiat currencies such as the US dollar, Euro, or others.
  • Central bank digital currencies — a digitized version of fiat money
  • Privacy coins. Such tokens are developed to guarantee that senders and receivers stay anonymous.
  • Governance tokens. The holders of such assets can vote for different decisions impacting the future development of blockchain.
  • Utility tokens, which unlock access to particular services.
  • Non-fungible tokens. Every non-fungible token has its unique features.

New Cryptocurrencies in 2022

  • Lucky Block
  • Binance Coin
  • Shiba Inu
  • Cosmos
  • Stellar

Conclusion

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DotBig Forex broker Reviews

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The official online Forex account broker DotBig is a platform for online trading.

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