Expect workers in Cryptocurrency market To witness an imminent collapse that will lead to the evaporation of billions of dollars, and the complete disappearance of some currencies from the world, while some likened the expected collapse to what happened in the early emergence of the “dotcom” market.
A report published by the American network “CNBC” and seen by “Al Arabiya.net” said that there are currently more than 19,000 cryptocurrencies and dozens of “Blockchain” platforms in the world, amid expectations that the market will witness a collapse in this industry during the few years. The coming period leads to the disappearance of some currencies and the devaluation of others.
There are likely to be “dozens” of cryptocurrencies that will remain in the future, Brad Garlinghouse, CEO of cross-border payments company Ripple, which means he expects a large number of cryptocurrencies that are currently in existence to disappear.
“I think there is a question as to whether or not we need 19,000 new currencies today,” Garlinghouse added. “In the fiat world, there are probably only 180 currencies.”
There are currently more than 19,000 cryptocurrencies, and dozens of blockchain platforms are the core technology on which many of these different cryptocurrencies are built.
The recent collapse of the so-called terraUSD algorithm and its associated digital token has shed light on the thousands of cryptocurrencies out there, and whether they will all survive, as it sent shock waves through the market.
“One of the implications of what we saw last week in the Terra case is that we are at a point where there are too many blockchains, and too many tokens. This is confusing for users,” said Bertrand Perez, CEO of Web3. “This also brings some risks to users.”
Bertrand Pérez continued: “As in the beginning of the Internet, you had a lot of Internet companies and a lot of them were scams, they didn’t bring any value and they were all erased. Now we have very useful and legitimate companies.”
More pessimism gripped the markets last week, said Scott Minerd, chief investment officer at Guggenheim, adding that most cryptocurrencies were “undesirable” but that Bitcoin and Ethereum would survive, CNBC reported in its report.
Comments from the crypto sector come as the market continues to feel the pressure, with bitcoin tumbling more than 50% from its high last November, with many other cryptocurrencies dropping sharply from all-time highs.
Many different blockchain platforms are vying for a leadership position in the sector, but Brett Harrison, CEO of cryptocurrency exchange (FTX US) said that the hundreds that exist today will not survive and will disappear in the future.
“When you think about blockchain … there will probably not be hundreds of them in 10 years, I think there will be two clear winners for different types of applications,” Harrison said. “We will see the market sort that out over time.”