Competition in the cryptocurrency market: Why a good number of cryptocurrencies will vanish in the future and who will win this game

The society’s approach to money has been changing many times throughout the history. Gold replaced barter system, whereas fiat paper money replaced gold. After this, cryptocurrencies became a new stage of evolution.

Each step in the money history was accompanied by desperate competition in the form of different approaches to understanding the new round of its development.

Money was made from shells, stones, teeth of animals and feathers, until many thousands of years ago these goods were replaced by gold in the form of coins. The coins were later replaced by paper money that was issued under government guarantees, liabilities of private banks and even private individuals. Then banknotes secured by gold appeared.

Today, a new stage in money development is accompanied by an advent of thousands of different cryptocurrencies, which compete for the right to take their place in the world exchange and become a universal equivalent.

Will the world history repeat itself once again, and will the cryptocurrency covered by gold become a winner in this competition?

Even as someone nowadays wants to emphasize the importance of bitcoin as the leading cryptocurrency, he/she calls it a “digital gold”. But bitcoin has technologically lagged behind the new generation of cryptocurrencies. In addition, bitcoin value is characterized by its volatility, as its value is not tied to anything and is vulnerable to speculation.

A quite obvious solution to this became a coin backed by gold; KaratGold has issued a cryptocurrency secured by physical gold. Having a gold equivalent, the KaratGold Coin combines advantages of cryptocurrency and the reliability of metal proven by millennia of human history.

Being, in fact, a digital gold, the KaratGold Coin is at the same time a blockchain-based cryptocurrency aimed to be used as a generally accepted electronic payment. The new cryptocurrency physically backed by gold is also a high-tech product, originally created to provide commodity turnover globally.

The KaratGold Coin steers its strategy towards the global aim, thus continues developing its payment system in a quick manner. It is working on development of a global blockchain-based cryptocurrency system backed by gold. Yet today, the KaratGold Coin is a legitimate means of payment with its own KaratCoin Bank in the United States.

The KaratCoin Bank is nowadays involved in ICO process (https://karatcoinbank.io/), which will give access to the system backed by gold to a wide range of the project supporters.

The system created within the project and successfully functioning on the basis of the gold-backed cryptocurrency will evolve into a global payment system. To reach this aim, the KaratGold Coin has developed the certain mechanisms that will enable owners, retailers and governments around the world to use an innovative blockchain-based currency covered by gold.

Will the world history repeat itself? Will the Karat Gold Coin win the hundreds of unsecured cryptocurrencies?

The near future of cryptoeconomics will certainly be of much interest.