When the crypto bubble originally happened, there were new crypto exchanges popping up daily. However, a recent article in Forbes points out that these numbers are now going in the opposite direction, and there are new exchanges shutting down almost daily. The boom of 2016 has since died out, and the exchanges that arose during this time have no reason left to be around.
Realistically, Bitcoin has already been done, and the Forbes article simply states that the world doesn’t need more replicas of this asset. Without the Ethereum-based tokens, there’s only about 30 listable tokens, which hardly supports the number of exchanges that are presently on the market.
Despite the many regulatory concerns and the pressure that various countries are placing on exchanges, it still doesn’t look like they aren’t going away anytime soon. There are still exchanges that will continue to be shut down, but the bigger platforms seem well equipped with the necessary support to keep the industry going for quite a while.
Altcoins are another concern in the cryptocurrency market. The limited appeal of these coins must have use cases to survive. Online games, for example, often have para-currencies, though it isn’t always easy to swap out these or money, which is good for the government. If the para-currency could be swapped out easily, private currency ends up circumventing different laws. The article states,
“Up to now, the use cases of money were powerful, a store of wealth, a unit of account, and a means of exchange, but apart from a few niche applications, like jewelry, decoration, and votive offerings, that’s all there is.”
“Crypto can be more.”
The necessity for Bitcoin to come into the financial world was due to the failure of the government, just like the entry of tokens from pubs in the 17th and 18th century, which assigned tokens a value of a certain amount of ale. The article suggests that this example is a good reason to support a lack of future for cryptocurrencies, considering that governments could simply create their own to remedy these circumstances.
However, perhaps the opposite is true, in that the decentralized nature of cryptocurrency and their exchanges allow users to be hedged from “disaster and privation” that could be imposed on the public.
Cryptocurrency exchanges have been dropping out of the industry since 2016, following the cryptocurrency boom. However, a recent article from Forbes suggests that these platforms could be around for quite a while.