The main reason is there’s no reason for 99.9% of cryptocurrencies to succeed.
What’s the value add? Can Bitcoin, Ethereum, etc. do what these other cryptocurrencies do?
Why can’t they just copy the features and also fill whatever “need” the cryptocurrency is supposedly filling?
99.9% of cryptocurrenices will go to zero in 10 years if not 10 months because they add zero value.
How many digital stores of value do you need?
What are these other cryptocurrencies good for?
Who’s doing non-speculative transactions on it?
Why?
Does the cryptocurrency have a wide moat?
Why do you think that?
How secure and stable is the code?
How scalable?
How fast can transactions be done on it?
How trustworthy are these ICO promoters and creators?
Cryptocurrencies are in a classic bubble.
The bubble can continue much longer than it should because there’s no good way to buy long-dated puts or go short in a price efficient manner.
And low interest rates at continue as economic growth remains anemic, driving investors to take more risk and speculate.
If you have ideas on how to buy long-dated puts safely, let me know.
I would love to buy long-dated, deep out-of-the-money puts on all the cryptocurrencies at a fair price.
The SEC should approve all reasonable cryptocurrency ETFs and exchange listed options so we can trade them and bring rationality and price efficiency to the market.