The general public often thinks that there is a fierce war between cryptocurrencies and that only one will survive. However, the reality is quite different. Let’s get this over with.
Cryptocurrencies are seen by some as speculative toys. In their minds, the main question is which will make the biggest performance in terms of price. If you are interested in the world of cryptocurrencies, you know that the reality is quite different. Cryptocurrencies meet a specific need in one or more markets.
I will show you today that there are different needs that digital currencies can meet.An international reserve currency. This role is currently mainly fulfilled by Bitcoin. There is no need for a huge level of technology to fulfill this role. Today BTC has already fulfilled this role perfectly but its potential in terms of volume of participants and volume of exchange remains absolutely enormous.
Liquid currencies for sub-national and international transactions. Fast and allowing to carry out exchanges at very low costs whatever the amounts, the potential in terms of volume is enormous. We will talk about everyday currency allowing you to make instant purchases. In this area, it is important to note that the number of cryptocurrencies can be high. Examples of possible sub-categories include:
• Transparent liquid currencies.
• Semi-transparent liquid currencies.
• Liquid currencies with variable transparency.
• Anonymous liquid currencies.
• Cash back liquid currencies.
• Liquid currencies reserved for a specific ecosystem.
• …
The smart currencies. Smart currencies are currencies that have a blockchain that makes it possible to carry out sophisticated operations such as contracts (smart contract). This is for example the case of Ethereum. To avoid that such currency poses a global systemic problem in case of problem, it is necessary that the cryptocurrency world has several blockchains of the same type. This way in case of a bug, it will not generate major economic problems. A minimum of 10 blockchains of this kind would be ideal.
Tokens. They are not actually currencies because they can only be exchanged in certain ecosystems. This limitation makes it possible to set management and governance rules for an economic, financial or other theme. The potential of tokens is almost infinite. For the moment the token works particularly well as a governance token or as a participation token (part of a project). However, their usefulness can vary infinitely. Difficult to encrypt, for my part I embark on the very daring estimate of 2000 viable token by 2030.
And the others, yes I know there are still many other possibilities but you will understand, the objective is simply to break the mindset «but which cryptocurrency will survive?»
