Many experts note that with no global moratorium on new altcoins creation, the quantity of them will hardly decrease. Besides that, the realization of this scenario (introducing of cryptocurrency creation ban) is nearly impossible because it is very hard to ban something that is not centrally regulated. Thus, the number of altcoins will only increase with time.
Experiments with blockchain technology will encourage the creation of new coins. “While people try to move from “interesting technology” to “useful” one, the number of coins will grow steadily”, - believes Safa Mahzari, the Founder & CEO of Alluxo.
Furthermore, Nick Spanos, ,bitcoin and blockchain expert, CEO of the Zap.org andfounder of theBitcoin Center NYC, noted that the growth of coins number is also ensured with the widening of coin application directions. “Earlier, US supermarkets and states used their own currencies and this phenomenon comes back now. The appearance of distributed ledgers has led to the establishment of interconnection and interdependence between different counterparties, which provides every company with an opportunity to use its own currency. This gives companies the freedom from the control of third-parties, such as banks and similar to them”, the expert added.
But professionals think, that despite the appearance of new crypto coins, those altcoins and tokens that will not adapt to the self-referential character of the modern crypto economy, are doomed to death. In other words, those altcoins will fall and die, which won’t manage to bound to the real economy. The current state of many cryptocurrencies is marked with an excessive concentration of counterparty risk, strong dependence from the market mood and a sort of monoculture. Professionals indicate that the only way to survive for a cryptocurrency is linking to actual people’s life and acquiring a wide usefulness for the society - as traditional money.
Graham Leach, Business Strategy Lead for SingularityNET, told Bitnewstoday, that there are two possible variants for a coin to exit the market. Firstly, a cryptocurrency can lose the interest of market participants. Consequently, the price of this coin will fall to almost zero similar to what happens to the real money in the real world when the world economy does not believe in some particular regime or jurisdiction. Remember the fate of Deutsche Mark after the First World War.
Another variant is possible too: when the system, in which cryptocurrency functions, loses the ability to support its distributed ledger and becomes vulnerable to data loss or hacking. As a result, the network members reach a consensus and destroy altcoin or token.
“Those altcoins will survive, which satisfy the real social and business needs of society. The crypto economy transformation on the market will leave only the most promising altcoins”, Daniel Taylor, Director General of BlocSide Sports LTD, argues.
Trevor Davis, a representative from GREGORY FCA, thinks that it is too early to speculate on which altcoins will be able to survive. “Crypto industry is still in its infancy. So it is likely that in one or two years many of the existing coins with large market capitalization, will disappear and will be replaced by coins we now haven’t even heard of”, the expert concluded.
However many experts believe otherwise. They think that such big coins as Bitcoin, Ethereum, and others, which are easily sold and used, have more chances to survive (also Ripple, Monero, and others).
Devin Shorey, a spokesperson for the company Wachsman, believes that the number of coins will grow, but the top ten of altcoins will change. “Nowadays, the biggest twenty-five coins have 90% of the market capitalization. However, in the next two years this list can shorten to fifteen or even fewer number of coins”, the expert predicts.
It appears that while global regulators do not prohibit cryptocurrencies creation and crypto sphere attracts more and more new players, the number of coins will grow. In addition, we can assume that the existing market leaders will not change their positions in the next one or two years as a minimum.