Around the world Cryptocurrencies are all the buzz. That said, people have to give a whole lot of thought before choosing one to invest in. Some will hit it big, but a lot are destined to fall. It is quite a game of chance.
Blockchain research firm, IOHL head, Charles Hoskinson has recently sat down for an interview with CNBC. It was during this interview that he talked about the masses of investors purchasing alternative cryptocurrencies with a notion that they will be the next Bitcoin. These alternative coins have been deemed unstable and destined to fail by the former CEO and co-founder of Ethereum, a free software platform which helps in creating new cryptocurrencies. He believes that once these coins are exposed to be riddled issues, they will crash.
Hoskinson was quoted saying, “What’s going to occur is a lot of these ventures that don’t have strong fundamentals, don’t have good tech, or just unrealistic projects, they will eventually run into some major wall they can’t quite overcome,” he said. “They will fracture up and you will see a lot of them are certain to fail.”
He further stated the crash won’t come immediately as a lot of them have a lot of money to keep them above water. We’re talking about a $1 billion capital and burn rate $10 million. Even when they become an obvious failure they will continue holding on for quite some time.
Hoskinson made these statements after a hoard of little-known cryptocurrencies rose to levels no one would have ever predicted. In the end only the strong survive and the alternative coins will only stay in the game for so long. Jackson Palmer, the founder of Dogecoin who left the company in 2015 said it best in an interview with Coindesk. “I have a lot of faith in the dogecoin core development team to keep the software stable and secure, but I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it which hasn’t released a software update in over two years has a $1 billion market,”