The recent collapse of the controversial digital currency terraUSD and the paired cryptocurrencies of the moon have given the market a shock and the question of whether a similar fate awaits other cryptocurrencies.
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“We are in a phase where there are basically too many blockchain platforms, too many cryptocurrencies. It confuses and exposes users, Bertrand Perez, who heads the Web3 Foundation, told the World Economic Forum (WEF) in Davos, Switzerland, last week.
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“It’s similar to the beginnings of the Internet, when there were a lot of Internet companies. Many of them were frauds and brought no value. It all cleared up, ”Perez recalled the so-called dotcom bubble of 2001, when small and professional investors bought shares of almost everything that was at least marginally associated with the use of the Internet.
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Dozens of cryptocurrencies are likely to persist in the future, says Ripple boss Brad Garlinghouse. The company deals with cross-border blockchain payments. “It is a question of whether we need 19,000 new currencies today. There are perhaps 180 legal entities with forced circulation, “he added.
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Most cryptocurrencies are waste.
Guggenheim Investment Director Scott Minerd
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“When you think about blockchains, (…) hundreds of them probably won’t exist in ten years. I think there will be some clear winners for different kinds of applications, “said Brett Harrison, head of the FTX cryptocurrency exchange. “We will see how the market solves this over time,” he added.
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Guggenheim chief investment officer Scott Minerd said last week that “most cryptocurrencies are waste.” Bitcoin and ethereum, which are the two largest and best-known cryptocurrencies, but he said they will survive in the future.
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The cryptocurrency market has been facing downward pressure on prices for some time. Bitcoin fell by more than 55 percent from a maximum of 1.4 million crowns last November, and a number of other cryptocurrencies also fell from records.
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Bitcoins and other virtual currencies
There are many virtual currencies. One of the oldest and currently most popular are the so-called bitcoins. They were established in 2009, but have enjoyed greater popularity in recent years. This currency was designed so that it could not be influenced by any government or central bank.
Cyber coins are “minting” a network of computers with specialized software programmed to release new coins at a steady but declining pace. The number of coins in circulation is expected to reach 21 million in the end, which is to be around 2140.
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