Rule #2: 99 Percent Of All Cryptocurrencies Will Go To Zero In The Future

During the month of November 2019, Ripple CEO Brad Garlinghouse made the following statement during an appearance on Bloomberg:

“I have said publicly before that I think 99 percent of all crypto probably goes to zero, but there is that one percent that I think is focused on solving a real problem for real customers and is able to do that at scale.”

— Brad Garlinghouse

The way I see it, Brag Garlinghouse is absolutely right. Almost 5,000 cryptocurrencies are currently listed on the CoinMarketCap reference site.

This rather phenomenal figure is due to the fact that it is very easy for anyone to create their own cryptocurrency, launch it and try to convince a few users to invest money in their adventure.

The other side of the coin regarding the ease of creating a cryptocurrency is that many of them launch themselves as copies of other cryptocurrencies.

This is technically true because many of these cryptocurrencies are only forks of Bitcoin or other Altcoins.

This is even more true from a use case perspective behind these new cryptocurrencies. For the most part, they bring nothing more than the cryptocurrencies from which they come.

For their founders, we have the impression that it is simply an opportunity to earn as much money as possible in a minimum of time.

Thus, many cryptocurrencies do not solve any real-world problems or do not do any better than the already leading cryptocurrencies in the field in which they want to establish themselves.