There’s no stopping crypto and the only way is… up.
The decentralized and unregulated nature of cryptocurrencies is one of their major selling features. With minimal government control and billions of dollars in circulation, some individuals desire a piece of the digital currency market.
Back in February 2022, Statista conducted a survey on cryptocurrency, and the results are stunning. There are over 10,397 currencies in existence and use. This is far more than the 66 currencies in circulation and use in 2013.
This is supported by Investing.com’s own research on the quantity of the asset class. As of 2022, the website listed 10,028 currencies in circulation.
Despite being a reduced amount compared to the Statista study, this is still a substantial number of currencies.
Bitcoin (BTC) Leads The Pack
According to TradingView, the total market capitalization of all digital currencies is nearly $930 billion at present. Bitcoin continues to dominate the market, comprising 40 percent of total market capitalization.
Similarly, Ethereum follows by 19.30%. These two cryptos control close to 60 percent of the market value.
The top five cryptocurrencies in circulation today—Bitcoin, Ethereum, Tether, USD Coin, and BNB—control a massive 75% of the overall market worth, according to Investing.com. The top 20 companies control an incredible 89% of the overall market cap.
Statista cites the openness of the cryptocurrency creation process as one of the reasons. A person can look up how to make his or her own coin and presto!
Thousands upon thousands of instructions will arise, covering topics ranging from how to build your own cryptocurrency for free to how to create your own with only a certain amount of money.
As Bitcoin Booms, So Are The Scams
The increase in the number of cryptocurrencies in circulation is concerning. Because, in certain circumstances, these currencies are pump and dump operations that defraud investors.
One example is last year’s Save The Kids fraud, which shook both the gaming and cryptocurrency communities.
In comparison to fiat currencies, bitcoin and its peers is still in its infancy. Both have some similarities that allow them to be used to pay for goods and services.
One significant distinction is that digital currencies are not regulated by any governing body, whereas fiat currency is overseen by the central bank.
This distinction is what bitcoin can learn from fiat currency. A few laws and restrictions will not harm the budding bitcoin market.
To secure the safety of investors, traders, and consumers, government regulation and supervision is required if cryptocurrencies are to become the future of financial markets.
Crypto total market cap at $938 billion on the daily chart | Source: TradingView.com Featured image from CoinCheckup, chart from TradingView.com