Why did a lot of cryptocurrencies appear?

The history of alternative monetary units is rich in examples of skyrocketing popularity. Some of them were replaced by an equally significant drop. Moreover, many cryptocurrencies simply could not withstand the competition of fiat money and sank into oblivion. It can be argued that the evolution of "money surrogates" (as they were dubbed by the representatives of the official authorities of Russia) is a kind of natural selection. Only certain varieties survive in this struggle without rules.

Who became the incentive for the diversity of cryptocurrencies

Bitcoin, the ancestor of the variety of cryptocurrencies that appeared later, managed not only to survive, but to "live" and develop. Born in 2009, this new digital currency has had an interesting fate full of unprecedented ups. There have been falls in her lifetime. But is it all that sad? After all, starting from the equivalence to the US dollar in a few cents, by 2013 the rate soared to $ 1000 (!). Then in 2015 there was a drop to $ 200. For several months, the cryptocurrency has stabilized, and today it is holding at an average level of $ 450. Isnt it an example that you want to repeat?

Bitcoin has shown the world an example of a modern currency. Its appearance sparked a wave of initiatives to introduce innovative technologies and create analogues. So gradually a lot of cryptocurrencies arose in the image and likeness of the original.

Many cryptocurrencies competing with each other

Starting this section with Litecoin, lets not forget that the number one cryptocurrency is Bitcoin, rightfully occupying the pedestal of the gold medalist. After all, it largely repeats the properties of gold, only virtual.

The second can be called Litecoin, created after "digital gold", conceived as the equivalent of silver. Based on the Bitcoin development technology, this cryptocurrency has taken its own niche and is holding a fairly stable rate. Unlike the first, which has a limit of only 21 million (so far only about 16 million), Litecoin has been issued 84 million. Due to the fact that the production of these crypto coins is limited, their rate against the US dollar is growing. Although it is significantly lower than Bitcoin and today is about $ 33. The "electronic silver" has a chance to survive and resist. He is in some way a follower of the pioneer Bitcoin.

A worthy third place is taken by Primecoin. Its creator, Sunny King, is an experienced programmer and cryptologist with many types of cryptocurrencies. Primecoin introduces an adjusted and somewhat simplified Bitcoin model. Among others, it is remarkable in that its production is based on solving useful problems in mathematics and cryptography. Primecoin miners have high rewards. With all the advantages of this currency, its rate is significantly lower than Bitcoin and averages $ 3.5.

Pircoin is recognized as its direct heir, which complements the entire variety of cryptocurrencies. Its distinctive feature is the absence of release limits. On the one hand, this promises miners an unlimited opportunity to receive rewards for the release of new crypto coins, on the other hand, the possibility of Pircoin inflation. The rate of this cryptocurrency is kept at about $ 6. Pircoin supporters are happy to have an evenly distributed income. Not only miners, but also all owners win.

The TOP cryptocurrencies also includes Namecoin, which has the same limit as Bitcoin - 21 million coins. Due to this, it is possible to maintain a relatively high average rate of $ 8. Although the difference with Bitcoin is incomparable. Among the many cryptocurrencies, Namecoin is resistant to hacking domains, as it has a reliable security system. This currency is similar to the first in that it does not have a control center and does without a central server.

Based on the technology of production of Bitcoin and Litecoin, the digital currency Feysercoin was created. She is mistaken for a follower of Litecoin, but due to the 4 times increase in the issue of crypto coins, her rate is low - at the level of 0.5 dollars. When the popularity of this digital currency declined, there were attempts to artificially create a scandal that attacks were allegedly made on the system. And after that, the security system was maximally strengthened, in contrast to the security systems of Bitcoin and Litecoin. However, these unreliable rumors remained at the level of gossip. And the Feysercoin rate has not risen even now. There are not many cryptocurrencies that can boast of a high rate, so it is not surprising that this is a problem.

Freycoin also belongs to the category of Bitcoin derivatives. It complements the variety of cryptocurrencies available. The limitation of their issue is 100 million crypto coins. The purpose of its creation is to find a solution to large accumulations of cryptocurrency. To activate the turnover, a tax of 5% was introduced if digital money is not in circulation. Freycoin rate at an average mark - $ 0.7. This currency fulfills a charitable mission, distributing donations to those in need in the amount of 80% of the profits received. And the rest is given to users, owners of the provided powerful computer equipment.

Is there a point in the diversity of cryptocurrencies

The popularity of Bitcoin has played a role in the emergence of many cryptocurrencies. Many creators of new species analyzed the first in order to correct, improve, eliminate shortcomings. Many of the newly created did not survive and left the arena of the cryptocurrency, not having time to prove themselves. Others try to compete with each other, find their users, which means they have a right to life. Among all the described cryptocurrencies, only Primecoin showed an example when, through the issuance of coins, one can benefit society. Some of the calculations can be applied to the development of genetics, bionics, pharmaceuticals, genetic engineering, space and nuclear industries.