Quick Answer 🔍How many cryptocurrencies are there in the world in 2023?
There are over 23,000 cryptocurrencies known to exist.
The concept of anonymous cryptographic digital electronic currency has been around for many years, but the concept didn’t come to fruition until 2009 when Bitcoin was created as a decentralized cryptocurrency.
Compared to the number of cryptocurrencies there are now, this concept has gone beyond its conception.
The first attempts at creating cryptocurrencies occurred in the 1980s, which is known as the pre-Bitcoin era. From that notion, Digicash was launched.
It went bankrupt in 1998, but it was the first model of digital currency that was created by David Chaum, an American cryptographer and computer scientist.
Oddly, Digicash went bankrupt only ten years before Bitcoin was launched.
After Bitcoin was launched and became popular, other cryptocurrencies were created. In 2011, Litecoin and Namecoin were launched.
Today, there are many more cryptocurrencies on the world market. Naturally, some are popular and lucrative, while others are not.
While Bitcoin remains the gold standard, so to speak, in cryptocurrency with Ethereum coming up from behind as a profitable Bitcoin alternative.
Let’s answer the question, how many cryptocurrencies are there in the world, and other information about this digital currency you might want to know.
How Many Cryptocurrencies Are There in the World in 2023?
With a little cryptocurrency history behind us, we can now discuss the topic at hand and tell you that there are currently over 23,000 cryptocurrencies.
Not all of these are active as there are some considered “dead” by the market and are not available to trade.
The number of cryptocurrencies almost doubled between 2021 and 2022.
By the end of 2021, the crypto market was experiencing an additional 1,000 new cryptocurrencies per month.
You would usually associate this kind of growth with success and in a positive way, but it’s not.
It’s not a good thing that there are so many cryptocurrencies on the market because most of them have little to no purpose other than to create income for the people developing them.
This promotes the need for investors to be picky about how they invest their money and how they trade crypto.
Why Has It Grown So Fast?
While some people are leery of cryptocurrency, it’s becoming more and more popular and accepted as an alternative to paper money.
Others will tell you that digital assets like Bitcoin are the future of currency intended to replace the conventional centralized government-controlled coins.
The idea of a decentralized currency replacement for paper currency and coins is not only popular, but also has benefits that you may not know.
Since cryptocurrency can be exchanged via platforms like Coinbase, where it can also be used like money to make purchases, it goes beyond just the benefit of buying and selling.
Here Are Three Main Advantages of Cryptocurrency:
The central banks of governments are allowed to print money during economic crises, which devalues their nation’s currency and creates inflation.
In contrast, most crypto comes with a limited amount, so when all available units are circulated, there is no central authority to create new units.
Eliminates the Role of Financial Institutions
When you are transferring money from your bank it charges you fees as an intermediary. Virtually everything you do when banking creates a fee.
They make money off of your money by investing and then off you through extraneous fees.
In cryptocurrencies, the members are the intermediaries, with minimum compensation.
Anyone with a mobile phone can use cryptocurrencies to make payments without having a bank account where they would incur more fees.
The Funds are Literally Yours
People put their hard-earned money in the bank where it falls under the control of the bank and the government. This is how it works across the world.
When times get hard, governments have been known to confiscate money from bank accounts, or at least freeze their accounts. That means you really have no control over your money.
It’s different with cryptocurrency. You are the only one who can access your funds. It belongs solely to you, not an entity or the government.
Why Are Cryptocurrencies So Important?
Remember that cryptocurrency doesn’t require a bank to transfer funds or buy and sell. It’s a decentralized form of currency that is all yours.
The idea behind cryptocurrencies is to enhance traditional fiat currency. No financial institutions are required to deal in crypto.
It’s important when you need to transfer funds fast, at low costs, without a payment processor involved across the globe.
Yes. It’s global and accepted in most countries, but not all.
Another innovative use for cryptocurrency falls within the blockchain realm where developers are using it to solve real-world issues.
I(t’s no longer just a replacement for traditional money.
Blockchain technology alongside cryptocurrency (they are tied together) are constantly being evaluated and tested for further endeavors for improving life for people all over the world.
The applications may surprise in the coming years.
A Breakdown of Cryptocurrencies
This section will address the most influential cryptocurrencies.
- Bitcoin, BTC on the exchanges, is the very first digital currency and the largest in terms of the market cap.
- Ehthereum, ETH on the exchanges, is known as the first programmable blockchain for building decentralized apps, dApps.
- Tether, USDTon the exchanges, is a stablecoin with the most trading volume and follows the USD.
- Cardano, ADA on the exchanges, offers low energy usage, is more environmentally friendly, and is a research-based crypto.
- Binance Coin, BNB on the exchanges, was built by the Binance exchange and is therefore its native crypto on the Binance Smart Chain.
- XRP, XRP on the exchanges, is a native digital asset for Ripple. It’s experiencing some issues with the SEC that alleges it’s not registered.
- Polkadot, DOT on the exchanges, is designed to let various blockchains “talk” to and work with each other.
- Solana, SOL on the exchanges, is a high-performance, super-fast, and inexpensive blockchain.
- Dogecoin, DOGE on the exchanges, is the world’s first memecoin to gain worldwide popularity.
- Monero, XMR on the exchanges, is a donation-based crypto used for untraceable transactions.
Types of Cryptocurrencies
There are seven primary types of cryptocurrency assets available.
Here are the types of cryptocurrencies available nowadays.
- Payment-centric digital assets including bitcoin, ethereum, and litecoin.
- Privacy coins developed for anonymity for receivers and senders.
- Stablecoins with their value tied to USD like tether.
- Central bank digital currencies which are digital versions of fiat currency commonly popular in Sweden.
- Utility tokens that unlock access to specific services.
- Governance tokens that provide voting rights in the decision-making that impacts the future development of blockchains.
- Non-fungible tokens with tokens that have unique traits that differentiate them from others.
Currently, Bitcoin and Ethereum have proven to be the most robust of cryptocurrencies.
This industry has drawn a lot of attention in recent months from investors as well as individuals.
Bitcoin maintains its status as the world’s largest crypto asset and blockchain technology. It is built on strong ideals, while still being a practical and technological work in progress.
If you didn’t already know, Bitcoin and all cryptocurrencies are volatile with wild and frequent fluctuations.
For some people trading crypto is fun and exciting, while for others it’s a serious investment for the future.
Moving forward, analysts predict that the global market in cryptocurrency will more than triple by 2030, achieving a market value of around $5 billion.
There is a growing pool of investors and individuals that they feel comfortable with using crypto assets for online shopping.
Half of active cryptocurrency investors feel this way.
Investors in crypto also see the benefits and the drawback of digital assets.
- Peer-to-peer structure
- Privacy and anonymity
- Fewer fees
- No bank or government involvement
- Limited regulation
- Environmentally harmful due to wasting resources
- No recovery options if funds are lost or stolen
- Creates issues with funding criminal activities
Now you know that there are over 23,000 cryptocurrencies known to exist.
This information should tell you that the crypto market is volatile and risky, but it also tells you that digital assets like bitcoin and ethereum are the most stable of trading currencies.
The future of cryptocurrency is unclear, though there is some speculation about what may occur in the coming years.
First, it’s believed that digital assets will be altered by regulations.
It’s also believed that crypto will be influenced by brands as big corporations jump on the bandwagon.
More and more payment platforms like Venmo are likely to start allowing customers to dive into crypto trading in the future.
As peer-to-peer payment apps allow for crypto features, there will be more education offered about digital currencies for more users.
No matter what, the drawbacks alone show that there is room for improvement for making the cryptocurrency market safer for trading and making purchases.
What do you think the future of cryptocurrency holds?
We hope you have found this cryptocurrency information unique and interesting.