Over 300 new coins reached $1mm market cap in 2017
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
After the massive Bitcoin price surge in November 2013, the popularity of launching new cryptocurrencies took off along with it.
In fact, if you go back at historical snapshots around that time, you’ll see that there were literally hundreds of new coins available to mine and buy. Here’s one from November 2014 – a time when there were only 32 coins that were worth more than $1 million in market cap, and 354 coins that were worth less than $50,000, usually trading for tiny fractions of a cent.
It seems like everyone and their dog were launching cryptocurrencies back then, even if they were a longshot to materialize into anything.
Then vs. Now
Fast forward to today, and things haven’t changed much – many people and companies are still launching new cryptocurrencies through a mechanism known as an ICO (Initial Coin Offering).
The only difference?
Today, there is real money at play, and in 12 months the number of cryptocurrencies worth >$1 million has soared by 468%. Meanwhile, the total value of all currencies together has skyrocketed by 1,466%.
Cryptocurrency is so hot, in fact, that raising money through ICOs has become more effective than traditional early-stage angel and VC funding.
For the long-time advocates of Bitcoin and other cryptocurrencies, it is now their moment in the sun.
And with this ICO activity and a wealth of opportunities emerging, a new breed of Bitcoin millionaire has been born. Like the wealthy tech founders that exit and give back to their local startup ecosystems, these new digital tycoons are using their newfound wealth to invest in upstart crypto projects that show potential – ultimately, further enhancing the ecosystem.
Out of the Woodwork
Of course, whenever there is a massive surge in prices and speculation, there are two other players that tend to come out of the woodwork.
One is of the scammer and shyster variety, and certainly crypto-fueled scams are a concern for everyone else in the broader ecosystem.
Perhaps even a bigger threat, however, are the regulators – and in recent weeks the SEC has voiced concerns about ICO “pump and dump” schemes, while Canadian authorities have clearly stated that “most ICOs need oversight”.
With the market exploding with hundreds of new cryptocurrencies and the total value reaching $177 billion, a new series of questions has emerged: what risk do ICO scams ultimately have on market? And, could misguided regulation disrupt the momentum of the crypto boom?
Or what happens when the electricity goes out ?Or the government declares this ” new currency ” illegal ?
BB,
the crypto fans are heralding the “new age”
of “private” and secure $.
I don’t think so, one must realize all computer
transactions flow through gov owned cables.
Another consideration: If a resource is not in your
possession? it is just a paper or an electronic
promise.
Don’t worry, the first graph clearly shows the strength of digital FRNs and other fiat currencies backing a solid growth in a proven product with a long track record of dependable use and stability.
It does NOT resemble a bubble.
If electricity goes out, everything comes to a screeching halt. Even if you have dollars to buy, businesses can’t operate to sell anything. We saw that in LA during the heatwave recently as entire neighborhoods were down due to a power outage.
Bitcoin plays into the cashless scheme. It recently got the blessing of the government declaring it is not as untraceable as originally imagined.
Paper currency was forced on people who insisted on gold. The bank has been pushing me to activate an app so that I can use my smart phone to pay at the point of sale. I don’t have a smart phone. Eventually, this may become a government rule; no banking without a smart phone.
You will use electronic credits to buy and sell. Sounds like crypto to me.
I will be launching a new cryptocurrency on Monday. The coins look like Tulip bulbs.
My sister had her young boys sell their gold coins and buy Litecoin.
Just another electronic fiat currency……..
Backed by nothing but a promise.
The government could crush the cryptocurrency fad with a snap of the fingers, just like they crushed online gambling – make it illegal for banks to convert traditional fiat into crypto. Obviously Goldman and others are making a killing on these currencies, otherwise they’d shut it down in a heartbeat. Ironically both libertarians and statists love crypto currencies – the libertarians adore the idea of a currency without a country, but the statists love the blockchain. The ability to globally track all transactions with the power of non-repudiation to the individual is a statist’s wet dream.
From what I understand, some cryptocurrencies are not trackable.
I would prefer the FREEDOM to choose the currency that I want to use, then be forced to use only the fake dollar.
I should be completely free to use cash, previous metals (copper, silver, gold, platinum), cryptocurrencies, or anything thing else as long as the other party agrees to the transaction.
I’ll be perfectly honest. I have no idea what cryptocurrency is. How you buy it. Or how you spend it. As a 76 year old idiot who uses a flip phone that makes and receives phone calls, can anyone explain this shit in easy to understand old people language?
Hey, Anonymous, you blockhead, he asked specific questions. Mr. Overexplaining Mansplainer.
If you actually watch the video, the entire point… as he states at the very beginning, is to provide a simple explanation for what a cryptocurrency (via blockchain) is. Which was the very first question. If you look at the comments, it is full of people saying “Thank you! This helps me understand.”
You on the other hand jump straight to telling a person how to throw money at something they don’t understand what they are buying. This is extremely irresponsible.
His first question was what it is. Until he understands that, buying it through a web-browser made to obscure what he’d actually be buying is dangerous and inconsiderate.
Spare me the judgmental talk; I don’t think I was being irresponsible, if the subject was abortion, maybe, but did you not understand that I said he could invest, I even put it in apostrophes meaning the amount was his decision, maybe even a dollar.
Now I will sound like razzle who said that if his negative comment brought about an improvement in the thread, then it was all good.
Your reply is a good addition to your video. Thanks!
You go to coinbase.com, open an account; you’ll need an email address, a cell phone and a password you will remember.
Pay with a debit, checking account or creditcard for any crypto currency you buy. They have a limited selection but they heave the major cryptos: Bitcoin, Ethereum..
You can buy portions of a coin if you can’t ‘invest’ the ~$4900 for BTC.
Thereafter, if you want to donate to TBP, you make a payment from your electronic wallet to TBP’s wallet account as found above.
I feel as if I just explained how to open a checking account but there’s a first time for everybody.
Neither impressed, nor blinded by the techno-babble surrounding this scam. Look at Bitcoin closely – how it originates, what ‘value’ there is in the ‘coin’ to put it in ‘circulation’ – Heck – even the idgit wikipedia entry on bitcoin (read the Creation section first) – point out quite clearly- BITCOIN IS 100% FRAUD – and has been since day one. Creating ‘something’ from ‘nothing’ – all proceeds going to the miners (read ‘top of the pyramid’). If you can show me, in sound economic terms how bitcoin is NOT a fraud – feel free. And no, just because a so-called ‘market’ exists for it doesn’t mean it is not a fraud. How does bitcoin differ in any way whatsoever from OTC stocks that are pure fraud (not all are, but an extremely high percentage are just legalized cert printing shops, issued on purely fraudulent basis.) ?? Don’t bother trying to razzle dazzle with ‘oh – you don’t understand block-chain tech… and other bs’ – the TECHNOLOGY has nothing to do with the fraud (other than a huge smoke and mirrors obfuscation) – SHOW ME HOW THIS IS NOT FRAUD AND SHOULD NOT BE PROSECUTED AS SUCH.
It is fraud by very nature – selling something that has no value, and pretending that it does. At least tulip bulbs could produce pretty flowers. Ditto on ALL cryto’s – the newest technology for printing otc sham certs.
Trots, your utter skepticism is no proof that it can’t work.
You sound just like the folks who told the Wright brothers that they were on the wrong track and should stick to bicycles.
Shit, if you’d been around, you might have discouraged the folks who dreamed of American independence.
You should change your name to Cassandra.
EL Cyber-net-co – Skepticism ???? ROFLMAO
Not a ‘skeptic’ at all. A skeptic is one who is unconvinced, one who has doubts.
Bitcoin is absolutely a fraud. Not a bit of skepticism, not any doubt of that at all. Not even an iota.
You use ad hominen and ridicule to answer the charges.
That pretty well says it all. The Wright Brothers flew their plane in answer to any ‘skeptics’.
You however, have chosen to disregard the charge and offer …. nothing.
I’ll take folks like ole Orville and Wilbur any day of the week – real people, real ideas, nothing fraudulent at all, put their money where others only blew smoke – and accomplished greatness. I myself have ‘been there’ done that – in other areas. Have you, mr cyber-co ?
The only thing bitcoin is accomplishing is defrauding thousands out of their hard earned income.
You can go ahead and keep purchasing their counterfeit three dollar bills – just quit trying to make a profit out of churning counterfeit currency. The miners and the churners – yeah, they’ll make money – by stealing it from all the lower levels of the pyramid. Criminals all.
Nuff-ced
Money is a method of a conveying value, nothing more. Money is a technology and technology always moves forward. A decentralized, distributed, immutable, and permissionless ledger entry system is simply the next stage in money technology, and is very much needed as gold and fiat are not capable of serving a globally connected world. For the first time in history, I can trade value with anyone else in the world without needing the permission of any central authority or institution. Cryptocurrencies are the most empowering technology to come along in the history of mankind.
Those of you claiming that it’s not backed by anything don’t understand why something needs to backed. The only purpose to back a currency to a tangible item is to create artificial scarcity and prevent or slow inflation. Cryptocurrencies have scarcity built into their code so there is no need to back them by something tangible. They are backed by Proof of Work though, as it takes significant amounts of energy, time, and effort to run and validate a blockchain.
Lastly, even though gold has some industrial use, it originally gained is value because it was shiny. Gold, just like fiat, just like crypto, is just a container of value; bitcoin is just a different container of value. Think of it like a hand written letter vs an email. They both convey a message, they just use a different method to convey that message.
Cryptocurrencies are the future, it’s inevitable. Don’t be the guy in the horse and buggy laughing at the first cars going down the road.