Late last week, the Chief Investment Officer of Guggenheim criticized most cryptocurrencies. Scott Miner firmly stated that most cryptocurrencies are junk, further adding that only Bitcoin and Ethereum may survive the test of time.
Interestingly, the statement made by Scott has been supported by many high-profile personalities in the crypto space. Backing Scott’s statement, the CEO of FTX projected that in the next ten years, there won’t be hundreds of different blockchains as we have today. He further added that the market will “sort that” over time.
A few days back, Bertrand Perez who happens to be the Chief Executive Officer of Web3 Foundation had the opportunity to express his views at the World Economic Forum in Switzerland. Bertrand Perez spoke about the Luna crash, admitting that the too many blockchains we have are confusing users.
He likened the current situation in the blockchain space to the early days of the internet and the dot-com bubble. Many years ago, there were a lot of dot-com companies and many of them were scams. Only a few of these companies have stood the longevity test, as the valueless companies were cleared from the market. The Web3 preacher believes that something similar will happen to the multiple crypto projects we have today.
Tens of Thousands of Cryptocurrencies and Counting
Today, there are close to 20,000 known cryptocurrencies and a bulk of these have underperformed or failed to live up to the goals outlined in their roadmaps. Comparatively, the fiat world has just about 180 currencies.
Without any doubt, the ecosystem does not need as many different cryptocurrencies as we have today. Several projects lack real innovation and simply mimic the goals of existing crypto projects. History has shown that imitation projects stand no chance of achieving success in the long run.
On the other hand, Bitcoin and Ethereum have dominated the crypto ecosystem for several years now. Both tokens are decentralized, secure, and useful to users. It seems almost impossible for any other cryptocurrency to outperform Bitcoin and Ethereum in the next few years.