As digital currencies are booming on an international scale, we are seeing more and more cryptocurrencies entering the digital financial market with each passing day. Initial coin offerings are being raised with each passing day raising millions of dollars. But do we actually need these much cryptocurrencies in our lives? The answer, probably no.
David Gokhshtein, blockchain advisor at Linda Coin, financial director Volkswagen, Volvo, Mazda, an entrepreneur, an influencer and a crypto enthusiast seems to be of the view that we don’t actually need these much cryptocurrencies providing the same service and doing the same thing.
Talking to BlockPublisher, David stated that:
Competition is great and leads to better products, but we don’t need 1500 cryptos doing the same thing.
David also seemed to be of the view that although we are seeing an exponential rise in the emergence of new cryptocurrencies as of now, in the future a large chunk of these will not even exist.
When asked about the acceptance of cryptocurrencies in the future and the possibility of them dying out with time, David replied:
I truly believe that cryptocurrency will be accepted on a larger scale in the future, but I also know that 85% of the current digital currencies won’t exist two to three years from now. Now, those who form partnership with existing companies will survive. An example would be Stellar forming a partnership with IBM.
This suggests that although digital currencies are growing with large scale emergence, we might not see most of the digital currencies exist in the future. Major spearheads like bitcoin and ethereum are more likely to persist for a longer period of time and might even dominate the global financial market.
Bitcoin is the one which is more likely to go the long way. All in all, despite the volatility and unpredictability that bitcoin provides, it is likely to be accepted by the people in the long run.
The co-founder of Reddit and VC of the venture capital firm Initialized Capital Alexis Ohanian seems to be of the view that despite the unpredictable nature, bitcoin is going to get more acceptance.
As volatile as it’s been, we see it continuing [to go] up over the long term, because more and more people are going to look for alternatives to fiat as a store of value as we see currency fluctuations with states failing and other uncertainty, that makes having a digital store of value like bitcoin something that’s desirable, because you don’t have to worry about withdrawing it from a bank or the value disappearing as a government money.
Now, what remains to be seen is that which cryptocurrency will survive the trials of time and which will not.