Home Tech & Gadgets The future of cryptocurrencies is not rosy at all: analysts warn

The future of cryptocurrencies is not rosy at all: analysts warn

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Several players in the cryptocurrency industry have told CNBC that thousands of digital currencies will collapse, while the number of existing blockchains will decline in the coming years.

There are over 19,000 cryptocurrencies and dozens of blockchain platforms. A blockchain platform, such as Ethereum, is the core technology on which many of these cryptocurrencies are built. The recent collapse of the so-called stable algorithmic currency terraUSD and the associated digital currency, which sent shockwaves into the market, brought to light thousands of existing cryptocurrencies and the hypothesis that they will all survive.

“One of the effects of what we saw last week with the Earth issue is that we are in the stage where there are practically too many blockchains, too many currencies. And that confuses users and also poses certain risks for users, “Bertrand Perez, CEO of the Web3 Foundation, told CNBC at the World Economic Forum in Davos, Switzerland, last week.

“As in the beginning of the internet, you had a lot of dotcom companies and many of them were deceptive and did not bring any value, and all this was eliminated. And now we have very useful and legitimate companies. “

The future of cryptocurrencies is bleak

Brad Garlinghouse, CEO of cross-border blockchain payment company Ripple, said there are likely to be “dozens” of cryptocurrencies left in the future. “I think the question is whether or not we need 19,000 new coins today. In the real world, there are maybe 180 currencies, “said Garlinghouse.

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Guggenheim Investment Director Scott Minerd also added even more pessimism last week when he said that most cryptocurrencies are “junk”, but that Bitcoin and Ethereum will survive.

Industry comments are coming as the cryptocurrency market continues to feel pressure. Bitcoin has fallen by more than 50% from its record high in November, with many other digital currencies much lower than their all-time highs.

Many different blockchain platforms are fighting for a leading position in the industry. But Brett Harrison, CEO of the US FTX cryptocurrency exchange, said the current hundreds would not all survive.

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