Offshoots such as Litecoin and Bitcoin Cash were born from its blockchain and codebase. Bitcoin is the first cryptocurrency and is quickly gaining popularity as a store of value. If and when the cryptocurrency markets crash, it will be relatively easy to identify some notable survivors in this list. The top 20 most-traded cryptocurrencies are a good place to start. No single currency has achieved or is even close to achieving mainstream acceptance.Įven bitcoin, the most valuable and widely used cryptocurrency in the world, suffers from scaling issues such as high transaction fees and slow networks. However, identifying survivors in the cryptocurrency markets is more difficult than it appears. And, if RBC Capital's estimate of a future $10 trillion market for cryptocurrencies is correct, those returns are substantial. Those who survive will have the upper hand in the game, boosting returns for early investors. The coin's value is justified by the lack of a clearly defined use case or characteristic.Īccording to Nolan Bauerle, research director at CoinDesk, 90 percent of today's cryptocurrencies will not survive a market crash. The overwhelming majority of the 1,385 coins currently available in the markets are unknown, but they are still being bid up to multi-billion dollar valuations.Īs of this writing, Dogecoin, a cryptocurrency created as a parody of the bitcoin boom, has a market capitalization of $1.6 billion. Companies without a business model and with multi-million dollar valuations went bankrupt when the mania subsided.Ĭryptocurrency markets are in a similar situation.
The mood in cryptocurrency markets is increasingly being compared to the craze for dotcom companies at the turn of the century, as valuations reach new highs.
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