Crypto website CoinKickoff recently released a report showing the failures of altcoin projects and the sustained success of bitcoin in an industry riddled with scams and frauds. Altcoin is an alternative digital currency to bitcoin that first appeared in 2011.
Data revealed that 91 percent of coins created following the 2014 cryptocurrency market crash are now completely abandoned. A large portion of coins that are now dead were created in 2017, with 704 now-dead coins being created that year. In 2018, a total of 751 coins died.
"Our research shows that 30 percent of the 751 coins that died in 2018 were fraudulent – the highest of any year in the last decade," the report stated. "The most notable [initial coin offering] ICO scams were the Vietnamese coins PinCoin and iFan. Local journalists exposed the firms for scamming as many as 32,000 investors to the tune of $660 million, which police in Ho Chi Minh City subsequently investigated."
The report also illustrated how many of the said projects came and went. The reasons for failure include being a scam or other related issues; being a joke or having no purpose; being an ICO or short-lived scheme; and simply running entirely out of volume.
Standing strong in the midst of all this is bitcoin. According to Hashrate Index, bitcoin has continued a steady climb of up to 270 exahashes per second (EH/s).
Bitcoin Magazine reported that more than a million addresses currently hold one bitcoin or greater, although it should be noted that bitcoiners may use multiple addresses. "Beyond that, over $14 trillion in annual transaction volume was carried over the bitcoin network the past year, a 13,900 percent increase from 2015's transaction volume," the magazine said. "And just as those metrics grew, the amount of bitcoin held on exchanges reached new lows, indicating that more bitcoiners than ever are holding their coins in a sovereign way."
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Examples of Altcoins that recently failed are Blocksize Wars, which faced existential attacks; Silk Road, which battled political challenges; and FTX, which suffered major exchange collapse.
Even Bitcoin got stuck in limbo for several weeks following the collapse of the FTX exchange. And because of the lack of a central authority or government to regulate it, many investors think it is risky to invest. According to the data provided by James Butterfill, the head of research at CoinShares, bitcoin's 30-day volatility has fallen to an all-time low of 18.7 percent – lower than the Nasdaq at 25.7 percent.
But despite a substantial decline, the cryptocurrency is still trading roughly $5 billion per day on trusted exchanges. Butterfill said this proves that it still remains "a highly liquid asset."
Financial analyst: Cryptocurrency has no intrinsic value
Meanwhile, well-known financial analyst and investor Peter Schiff predicted that Bitcoin, which peaked at nearly $69,000 in November 2021, will never cross the $100,000 threshold. He believes that cryptocurrency does not have any intrinsic value, as it has yet to prove itself as a safe store of value or currency.
Like other investors, Schiff is concerned that Bitcoin's lack of tangible utility makes its high market valuation difficult to justify and argues this renders it vulnerable to high volatility. (Related: World's largest bitcoin trust refuses to share proof of reserve audit.)
It should be noted that Schiff was right about the cryptocurrency bubble of 2021 when bitcoin rose to an all-time high and then crashed soon after.
Check out CryptoCult.news for more on the current situation of digital currencies.
Watch the video below that talks about how bitcoins are still not the "best" investment for Wall Street firms.
This video is from the Recharge Freedom channel on Brighteon.com.
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