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« on: January 29, 2019, 11:46:03 AM »
One of the risk if you invest in cryptocurrency is Longevity The ballooning number of altcoins represents a risk to an investor. It’s impossible to put an exact figure on it, but it’s thought there are between 1,600 and 2,000 in existence. And it’s incredibly difficult to know which of those coins have realistic, mainstream, long-term potential. Remember, there are still very few real-world examples of blockchain and cryptocurrency adoption. The price of the coins is predominantly being driven by speculation. However, despite the lack of real-world adoption, there is still a considerable amount of capital invested in altcoins. According to CoinMarketCap, 15 have a market cap of more than $1 billion and 57 have a market cap of more than $100 million.
Even if you’ve read the associated whitepaper and performed extensive due diligence, you still might find that the coin you backed doesn’t amount to anything and the value drops to zero. The more coins that are in existence and competing against each other, the greater the risk of this happening.