With more than 660 existing alternative currencies today, according to CoinMarketCap.com, and only some are popularly used, whether these coins actually had a target market or use in mind before they are created arises.
Some of these coins are not exploitable, some premined, and other low volume trading record undetectable 24 hours, or as low as $ 11, with no better prospects for the future, the appearance of things today.
Thus, some of them have been marked as "single brand". The executive director of a nonprofit trust Force digital profit figures of the Foundation, David Duccini, says most altcoins are built to fail "because they are empty" brand only "coins that have real utility."
He explains:
"If you look at the list of currencies in coinmarketcap are simply numbers forks only graphical changes and some minor adjustments in the algorithms - as a matter of time, total size Coinbase etc. They tend to focus on features instead of benefits . tokens themselves are useless you are not satisfied with BTC or LTC or dogecoin is an excellent example of a coin brand. for chips that have any real value, must have a market and the usefulness of an exchange cryptocurrency otherwise have a spiral pump-n-dump death among miners and speculators ".
The CTO Emercoin, Oleg Khovayko agrees with Duccini. Compared altcoins be the same as 70% of new firms die in the first three years of its creation. He thinks the large number of coins are having an impact on the growth of some currencies that supposedly have a clear purpose, but lost in the bottom of the list.
"It is the impact, but not significantly," he said through a Skype chat. "Many altcoins have interesting distinctive features, and I prefer to see them in the world."
Why he believes are "not significant", said "The total capitalization of all coins available is $ 13billion coinmarketcap.com according to the United States. US $ 10 billion in BTC. So imagine if all altcoins stop, and all that money moves to the BTC, the price will increase by 30%, which is comparable to its monthly volatility. "
The price of the volume Emercoin 24 hours increased to $ 2.1 million for his pair of EMC / CNY commercial that began BTC38 July 20 almost doubled, with trade volume multiplied by five.
Lisk CEO, Max Kordek, has a similar view. It is said that many cryptocurrencies out there is only "currency" circulating in a network of dead solve any problems.
"I can not speak for everyone cryptocurrency but many never had any higher purpose, the purpose of marketing or use in mind," he said by email. "However, even projects with a vision have problems (failure rate for regularly starts is about 90%. In the Blockchain industry this figure is probably higher). I think the biggest mistake that everyone has is solve all at once and try to implement dozens of different features. is a marathon. I do not think in the next 12-18 months will see major adoption cycles. it takes time to build the base, then it takes time to build a good product then takes time to design a great UX, and maybe then you can expect hundreds of thousands of users. not before. So stay in the game for a long time and be consistent. that's important to me . "
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