If you have good knowledge of cryptocurrencies, then you must be aware that there are several cryptocurrencies available at present. Bitcoin is now the top and most popular cryptocurrency. But during the time of its launch, it did not have the recognition that it has now.
It is very clear that it was the cryptocurrency to lay a foundation or seed for the success of other cryptocurrencies available at present. If you are interested in bitcoin trading, visit http://bitcoin-equaliser.com
In the past few years, there came many cryptocurrencies in the digital finance market. It is very easy for people to predict their own list and estimate which is the best. But there were some coins that went up to a great value and some coins never made it up to even a certain level. So, why are some cryptocurrencies different from others? Why do few cryptocurrencies fail and few succeed?
If you take a look at the last 10 years, more than 2000 coins have failed. That clearly helps us understand the competition in the present crypto market. If you take a look, most of the cryptocurrencies that failed are having low volumes. There are several factors that are responsible for a cryptocurrency to fail or succeed. So, let us have a look at a few factors here:
Utility
Some cryptocurrencies become very popular in just no time of their launch. They also fall at the same speed with which they became popular. It can be the fan base that made the coins popular. But when there is no actual use of the cryptocurrency, it will start to fall. If you are able to use cryptocurrency as a mode of payment for products or services, then the coin has high utility.
The Community
Not many people will agree but Community is another important factor that helps in deciding whether the cryptocurrency will fail or succeed. One of the best examples that you can consider for this point is Dogecoin.
When it was launched in the year 2013, it was a joke. But if you look at the same coin today, it is nowhere near a joke. This is all because of the fan base that this cryptocurrency has at present. It is at rank no 43 at present and that is a great achievement for a meme coin. So, the community is responsible for a coin to fail or succeed.
Security
Another parameter that can make or break a cryptocurrency is the security levels that they offer. There are many cryptocurrencies that have a promising start. But in just no time, they start falling. That is because of security reasons. Cryptocurrency has all its operations only online.
There are more chances of hacking, online fraud, and others. So, if the security offered by the cryptocurrency is not good, then it will not succeed. Many cryptocurrencies with good security have grown and are still growing.
Features
The features offered by the cryptocurrency are another factor that decides whether it is going to fail or succeed. With some cryptocurrencies, you will be able to complete transactions at a very high speed. Also, many people will be able to do transactions at the same time.
The scalability will also increase. Along with that, the transaction fee is also a fee for many cryptocurrencies. The set of cryptocurrencies that offer some extra features or are able to handle the issues that you are facing due to other cryptocurrencies will help in their success. Other coins which do not have anything unique to offer will fail in just no time.
These were some of the main reasons why cryptocurrencies fail or succeed. The cryptocurrency market has very high competition. So, there will be many cryptocurrencies that move ahead and some of them fail. Its community, security, and other features will altogether work towards the success of any cryptocurrency. It is a natural game for any crypto.
If you look at the positive side of cryptocurrencies, there are several small and new coins that are gaining a lot of popularity in just no time. Always understand that in a volatile market like cryptocurrency, failure and success can happen at any moment. It can be tough to figure out the exact reason for the success of any cryptocurrency or vice-versa.
