Market value of virtual cryptocurrency

How many cryptocurrencies are there in the world

at present, there are more than 1350 encrypted virtual currencies in circulation in the world. So far, according to the total valuation given by the market price, there are 23 virtual currencies with a valuation of more than US $1 billion, 97 with a value of more than US $100 million, and 573 with a market value of more than US $1 million. All in all, the total market value of virtual currency has exceeded US $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 covert and anonymous. However, bitcoin is the first one to appear, so it is the most well-known and popular one

so the question is, does the world need more than 1350 cryptocurrencies

even the players of virtual currency will doubt this. No matter how strange the world is, there cannot be so many virtual currencies. In fact, there are so many new ICO virtual currencies emerging in recent years, which complement the "Crazy" performance of bitcoin in this year. Most of these 1300 kinds of virtual currencies can't be recognized by everyone. From the beginning of ICO, there will be many loopholes that no one will fill. When there is a major adjustment in the virtual currency market, many of them will disappear automatically, which means that no one will go to mine any more

this also leads to a problem. When some of the cryptocurrencies have problems, the entire instry chain and market of virtual currency may be involved like dominoes. Even the strongest bitcoin now will also be involved, because the cryptocurrency, in the final analysis, is supported by the "belief" of players

why is bitcoin worth more than other cryptocurrencies

at the time of writing this article, the total value of bitcoin is about US $270 billion, the total value of cash of bitcoin is about US $31.7 billion, and the market value of bitcoin gold is US $5.17 billion. Since bitcoin cash and bitcoin gold are separated from bitcoin, in a broad sense, they should be counted as a part of the total value of bitcoin (of course, you can't refute me technically, just for a rough explanation). Once we add up all the branches of bitcoin, we can calculate the market value of more than $310 billion. As a result, bitcoin accounts for about 60% of all cryptocurrencies in the market

as I have repeatedly said in recent days, bitcoin is not the most effective cryptocurrency, the most advanced, the most anonymous, or even the most stable cryptocurrency. So why is bitcoin so valuable compared with other virtual currencies

it's very simple, because bitcoin has a catalytic factor, that is, the Chicago Board of trade, as well as the commodity exchange, began to trade futures as a "commodity". Then, you will naturally think that since it has been recognized by the futures exchange, will it be further recognized by the US government in the next step. Other virtual currencies are still struggling

however, we have always stressed that since the day bitcoin was traded as a "commodity", its real monetary role, like gold, has been very weak in reality, but as one of the procts of gambling. This means that we all do bitcoin as a speculative activity, rather than a real use

judging from the current situation, bitcoin is no longer the only virtual currency that soars as soon as there is news of "official support". It is like iota, a virtual currency that focuses on the principle of the Internet of things. The news of cooperation with Microsoft came in the last two weeks, and it immediately rose to more than $300. 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 the virtual currency is recognized by some big company or organization, it will soar like bitcoin

At present, the total market value of global cryptocurrency has exceeded 850 billion US dollars, and the total market value of bitcoin has exceeded 600 billion US dollars, accounting for 70.9% of the total market value. What is value? I just divide value into three parts: scarcity, necessity and circulation. Rarity is the most precious. When the demand is greater than the supply, the market price will rise. And vice versa< for example, just like women will pursue limited quantity bags and boys will buy Rolex water devils, the market price is higher than the starting price, so it's not surprising that prices rise to grab goods in the world of cryptocurrency, scarcity corresponds to whether the number of issues is constant. For example, there is an upper limit on the number of BTCs, but eth does not. This is also an important reason why BTC has become cryptocurrency gold

in order to successfully raise funds, the project team must also carry out a series of activities around these three points. In order to increase liquidity, it is necessary to discuss listing matters with the exchange, and sometimes a lot of listing fees need to be paid. The total amount of money in circulation should not be too large, there should be a certain scarcity. Whether the project itself is good enough and the importance of the problem determine the necessity of token. Scarcity, necessity and circulation are the basic indicators to evaluate the value of token< before ICO, these three indicators were more important because there was not enough information for reference or the project was not implemented at all

Meitu's $40 million purchase of cryptocurrency can not raise the stock price, because the market value of virtual currency is very high and the holders are very dispersed. The purchase of $40 million can only temporarily affect the price of virtual currency, but has no effect on the whole trend, which can not stimulate the stock price of virtual currency