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Many criptocirrencys

What is the advantage of having many Cripto currencies?

Answers 2

There are several advantages of having many cryptocurrencies in the crypto ecosystem

  • Having many crypto means there are many developers who are interested in developing decentralized applications.
  • It also means that the industry is becoming highly specialized which usually imbues comparative advantages.
  • This means that innovators are increasingly using decentralized ledger technology to create solutions for various problems.
  • Many and increasing cryptocurrencies means a healthy and vibrant community that is not affected by prevailing bearish market conditions.
  • While it might be initially confusing to new users in the space, the availability of thousands of of crypto projects gives them a lot of options to choose from.
  • The different cryptocurrencies often use different distributed ledger technology (blockchain, DAG etch) which has their own advantages and disadvantages, therefore users can use which one fits their requirements
  • This phenomenon also shows the pervasiveness of cryptocurrencies
  • Lastly it shows that the cryptocurrency community is alive, vibrant and active.

Different cryptocurrencies try to address different problems or the same ones in different ways. Some are primarily just used as money, like bitcoin BTC. Others are platforms for smart contracts and dapps to run on like Ethereum, EOS, or Telos. And then some are very specific projects like SEEDS or Sesacash where the tokens are for use mainly with those dapps.

The future will probably see us using a variety of tokens and coins depending on what we do and which apps we use most.

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