Some Interesting Facts on Blockchain & Cryptocurrencies Not Known To Many
There are many crypto facts which people do not know. If you are interested in investing and trading in crypto currencies, you must know these facts as it will help you to take wise investment decision.
Following are some of the crypto facts which you should know.
Majority of Blockchains are actually highly Centralized
This is a significant issue with blockchains in the current scenario. 70% of all blockchains are usually centralized extremely. Their main objective is to scam investors, though giving false assurance about decentralization, customization freedom, security and other similar things. Anyway, reality is most of them lack authenticity and they care least when it comes to decentralization. Since the cost of decentralization is quite hefty many new players are not able to afford it. Very few new entrants like NEO, EOS, Ripples, Stellar, Dash and Tron are fully decentralized.
Are These Cryptocurrencies Decentralized?
It won’t be an exaggeration of facts to say most CTOs and CEOs who are operating multibillion dollar crypto currency firms do not have a little knowledge about the various aspects of decentralization. Though they claim to be so and investors also fall into the trap easily. In fact the blockchains happen to be decentralized and scalable will not remain blockchain any longer. Nano, IOTA and Holochain are only a few examples of it. Hence, it is quite anticipated that the idea of blockchain is going to be unviable and obsolete in the coming years.
Statistics say, in 2017 there were 902 crypto currencies ICO out of which 142 failed even prior they could raise any funds. Another 276 failed to operate properly after fundraising. Nearly 113 ICOs were categorized as partially successful currency. This means a staggering 59% of total ICOs that failed may have raised almost $104 million of investor money. Hence, it is clear that crypto currencies have a very high failure rate.
The Successful Players Are Very Low in Number
When we analyse the data in 2017, it is observed that only 50 out of around 900 ICOs in that year could make a return of 5 times or more. On the contrary 800 of the 1600 coins or token possibly ended up as dead coins. Hence 7 out of the top 10 coins could not continue in the long run and end up dying soon. Unfortunately these operators continue to mislead investors that their funds are being invested in a great coin.
Reason behind the Failure
One of the most important and obvious reasons for the failure of the blockchain market is perhaps the fact that the total market is controlled by big players and they control nearly 40% of total Bitcoins in circulation in the current market scenario. The total market capitalization of Bitcoin can be around $70 billion. They are likely to increase the market cap from $70 billion to further $100B and it can be even $1 trillion within a very short time as they wait market cycles to play it out and then start pumping out the funds and move the market cap up.
You may be interested
What Is The Best Free VPN?Dan McGaw - April 16, 2021
Virtual Private Network or VPN have occupied an important position in the lives of internet users. It has dozens of…
3 Key Considerations to Remember When Hiring a Market Research Company in SydneyDan McGaw - April 16, 2021
Sydney consistently ranks high in the Global and Asia Pacific hub for business. This capital city in New South Wales…
Automotive Innovation: Repowering 4WD Engine PerformanceDanish Meraj - April 16, 2021
The greatest modification that many four-wheel-drive lovers can make to a vehicle is improving engine performance. Nowadays, automotive technology is…