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Expectations of the cryptocurrency market crash and the evaporation of billions of dollars

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Cryptocurrency market workers expected an imminent collapse that would lead to the evaporation of billions of dollars and the complete disappearance of some currencies from the world, while some compared the expected collapse to what happened in the first appearance of the “dotcom” market.

A report published by the American network “CNBC” and viewed by “Al Arabiya.net”states that there are currently more than 19,000 cryptocurrencies and dozens of” Blockchain “platforms in the world, amid expectations that the market will see a crash. in this industry over the course of a few years, the next period leads to the disappearance of some currencies and the devaluation of others.

There are likely to be “dozens” of cryptocurrencies that will remain in future, Brad Garlinghouse, CEO of cross-border payments company Ripple, which means he expects a large number of currently existing cryptocurrencies to disappear.

“I think there is a question of whether or not we need 19,000 new currencies today,” Garlinghouse added. “In the fiat world, there are probably only 180 currencies.”

There are currently more than 19,000 cryptocurrencies, and dozens of blockchain platforms are the underlying technology on which many of these different cryptocurrencies are built.

The recent collapse of the so-called terraUSD algorithm and its token digital has shed light on the thousands of cryptocurrencies out there and whether they will all survive as it has sent shockwaves through the market.

“One of the implications of what we saw last week in the Earth case is that we are at a point in which there are too many blockchains and too many token. This creates confusion for users, “said Bertrand Perez, CEO of Web3.” This also carries some risks for users. “

Bertrand Pérez continued: “As in the beginning of the Internet, there were many Internet companies and many of them were scams, carried no value and were all canceled. We now have very useful and legitimate companies.”

More pessimism gripped the markets last week, said Scott Minerd, Guggenheim’s chief investment officer, adding that most cryptocurrencies were “undesirable” but that Bitcoin and Ethereum would survive, CNBC reported in its report.

Comments from the cryptocurrency industry come as the market continues to feel the pressure, with bitcoin plunging more than 50% from its high last November, with many other cryptocurrencies falling sharply from all-time highs.

Many different blockchain platforms are in vying for an industry leadership position, but Brett Harrison, CEO of cryptocurrency exchange (FTX US) said the hundreds that exist today will not survive and disappear in future.

“When you think of the blockchain … there probably won’t be hundreds of them in 10 years, I think there will be two clear winners for different types of applications, “said Harrison.” We’ll see the market solve it over time. “

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