At present, there are more than 1350 kinds of encrypted virtual currency in circulation around the world. Up to now, according to the total valuation given by the market price, there are 23 kinds of virtual currency with a valuation of more than $65.438 billion, 97 kinds with a value of more than $65.438 billion, and 573 kinds with a market value of more than $65.438 billion. In short, the total market value of virtual currency has exceeded $5 trillion, of which Bitcoin, the earliest invention, accounts for more than half. Players generally admit that Bitcoin is not the most effective cryptocurrency, nor is it the most hidden and anonymous, but it first appeared after eating "soup", so it is the most famous and popular.
Then the question is, does the world need cryptocurrency above 1350?
Even the players of virtual currency will be deeply suspicious of this. No matter how strange the world is, it is impossible to have so many virtual currencies. In fact, there have been so many new ICO virtual currencies in recent years, which are complementary to the "crazy" performance of Bitcoin in this year. This 1300 virtual currency, most of which are not recognized by everyone. Starting from ICO, there will be many loopholes that no one fills. When there is a major adjustment in the virtual currency market, many will disappear automatically, which means that no one will dig again.
This also leads to a problem. When some cryptocurrencies have problems, the whole industrial chain and market of virtual currency may be implicated like dominoes, even the strongest bitcoin will be implicated, because at present, cryptocurrencies are supported by the word "belief" of players.
Why is Bitcoin more valuable than other cryptocurrencies?
At the time of writing, the total value of bitcoin is about $270 billion, while the total value of bitcoin cash payment is about $310.70 billion, and the total market value of bitcoin gold is $510.70 billion. Since bitcoin cash and bitcoin gold are separated from bitcoin, in a broad sense, they should be counted as part of the total value of bitcoin (of course, you can't refute me technically, this is just a general explanation). Once we add up all the branches of Bitcoin, we can calculate the market value of about $3 1000 billion. Therefore, the total value of Bitcoin accounts for about 60% of all encrypted virtual currencies on the market.
As I have repeatedly said these days, Bitcoin is not the most effective cryptocurrency, the most advanced cryptocurrency, the most anonymous cryptocurrency, or even the most stable cryptocurrency. So, why is Bitcoin so valuable compared to other virtual currencies?
It is very simple, because Bitcoin has a catalytic factor, that is, the Chicago Board of Trade and the Commodity Exchange, and it began to trade futures as "commodities". Then everyone will naturally think, since it has been recognized by the futures exchange, will it be further recognized by the US government? Other virtual currencies are still struggling.
However, we have always stressed that from the day when Bitcoin was traded as a "commodity", just like gold, its real monetary attribute function has been very weak in reality, but as one of the gambling products. This means that everyone is doing bitcoin as speculation, not really using it.
Judging from the current situation, the virtual currency that soared as soon as there was news of "official support" has surpassed Bitcoin. For example, IOTA, a virtual currency that focuses on the principle of the Internet of Things, heard the news of cooperation with Microsoft last week and immediately soared to more than 300 dollars. Later, Microsoft came out and said that there was no such thing, and Iota immediately fell back. It can be seen that in the future, as long as there is news that virtual currency is recognized by a large company or institution, it will skyrocket like bitcoin.