Currently on CoinMarketCap already more than 1500 digital currencies. The largest market capitalization ($200 billion) is a leading cryptocurrency bitcoin. Followed by Ethereum, Ripple, Bitcoin and Litecoin Cash whose capitalization ranges from $85 billion to $ 12 billion.
Financial performance the total value of the cryptocurrency included in the top 20 exceed $ 1 billion, and the next 115 million and $ 100 million. About half of the remaining, less popular digital currencies have a market capitalization of $ 1 million or less.
It should be noted that although an impressive market capitalization does not necessarily mean that a digital currency will achieve mass recognition, this indicator definitely gives it weight.
Among the main problems faced by digital currencies is their relative novelty, and the ease with which it can be created new coins and increased the total number of tokens.
Another serious problem of cryptocracy are the primary supply of coins (ICO) organized by the fraudsters. The Commission on securities and stock exchanges of the USA (SEC) has repeatedly warned about these risks.
Recall that according to estimates news.Bitcoin.com in 2017 in the disastrous and fraudulent ICO investors had invested about 233 million dollars.
A large number of fraudulent projects related to crypto, can lead to the disappearance of the entire ecosystem of digital currency. Another option might be that investors and companies will invest only in those projects in which they believe.
At the moment the most serious cryptocurrency is the one that came first – bitcoin. Besides the fact that bitcoin has the largest market capitalization, it also has the highest price. Over the last two weeks his course ranged from $9 500 to $11 500.
Also bitcoin has reached a certain level of acceptance of the world financial companies. So in December of last year, ITS options exchange and CME began trading futures on bitcoin. American Fidelity holding company announced that in addition to the small investment in cryptocurrency companies, she also became involved in mining.
The emergence of news about the interest in crypto-currencies is the largest financial market players, such as Goldman Sachs, making investors feel more comfortable, start to allocate capital and create the demand. This is due to the confidence that these major financial institutions would not invest in cryptocurrencies, if they did not feel that they are not viable.
Square, an American technology company that develops solutions for the receiving and processing of electronic payments, allow their trade customers to accept bitcoin in 2014. In November last year Square announced that I decided to experiment and allow some users to buy bitcoin.
At the December conference to discuss the quarterly results, Jack Dorsey (Jack Dorsey), CEO of Square, said:
“Bitcoin for us is not limited to buying and selling. We believe this is a transformative technology for our industry, so we are going to develop it as soon as possible. We also believe that it gives the opportunity to get more people access to the financial system.”
Many analysts believe that the use of bitcoin by different companies can make it and other digital currency viable in the long term. To the extent that, as more and more companies commit to use certain crypto currencies, and other financial and technology organizations are also beginning to experience interest in digital currencies.