The recent cryptocurrency crisis makes the "minor currencies" disappear

22 August 2018
By: Steven Anderson

If you intend to enter the cryptocurrency market, but you are overwhelmed by the huge number of options it contains, and with good reason; a quick check of CoinMarketCap says that at the time of writing this article there are 1.855 – there may be some relief coming soon. A new report from the University of Syracuse says there may be a tremor on foot that will torquish many of the smaller altinis and reduce the market.

The word from the associate professor of Syracuse University School of Information Studies, Lee McKnight notes that several cryptocurrencies have lost almost half their value. With 58 coins still holding market capitalizations of over $ 100 million, however, it could be good news for the market in general. McKnight recognizes the possibility that these liquid coins will only have speculators that accumulate and "risk", but even this can represent an excellent buying opportunity at relatively discounted prices.

In addition, McKnight expects a lot of field-compensation to take place. One can say a lot from his observations, as he said: "I expect that most of the 1833 crypto-coins will remain in life unchanged over 2018 in the" Way Back Machine "archive of the Internet in a short time, as the reality of the easy brainless (for geeks, students and scammers) the creation of a new currency becomes more understandable.But this is normal at a time when new technologies and new markets emerge … "

The process that McKnight describes it is quite standard for new technologies in general. A big winner attracts a myriad of competitors, and eventually the market becomes so full of competitors that the little ones are eliminated in favor of the stronger ones. Of course, McKnight is not talking about bitcoin itself here; the bitcoins have had too much time to make it bend and run away. There are institutional players trying to get into bitcoin and keeping the price stable and / or increasing for months. They are all small coins, the things that are never heard on the news that will be glued.

Yet, in the end, the cryptocurrency market will not die. It will be rendered unrecognizable against its current form, however, and probably reduced to such a point as to be a shadow of its former self.

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