What for many is a novel investment system, for others it is a simple game. Yes, it is that cryptocurrencies give for many opinions. However, a few days ago the mathematical expert Micali, founder of Algorand pointed out that it will be the end of cryptocurrencies. But there is no need to be frightened, as this is only the end for most of the 15 000 options that exist today.

The popularity of cryptocurrencies

Cryptocurrencies consist of decentralized digital money, which allows you to make transactions at high speed to almost any part of the world through an electronic device. It all started in 2009, when an anonymous programmer created Bitcoin. This digital currency started as a game and later positioned itself as one of the most valuable cryptocurrencies in the world. In the wake of Bitcoin have emerged more than 15 thousand options of decentralized projects, using blockchain technology.

And what is blockchain? it is a technology that allows transactions to be decentralized, anonymous, fast and secure. It works like a giant ledger, where users confirm transactions and they are recorded irreversibly. This is how countless projects and blockchains of various kinds have emerged, associated with content, games, banks or ecological projects.

In fact, many large companies already own or are developing their own cryptocurrencies. This allows them to gain greater popularity, be at the forefront and can offer users the payment and service exchange facilities they require. Such is the case for example of PayPal, Facebook or Binance, the popular exchange house.

The end of cryptocurrencies in 2022

Following the above explained, Micali pointed out in a statement that it may be the end of cryptocurrencies, but only the less relevant ones. That is, according to their perception, the world does not need thousands of blockchains, but maximum about 10 or 20 to host applications and generate content. That is why less relevant and popular projects will tend to disappear in the coming years.

The trend will be towards a consolidation of existing projects and the disappearance of those that do not offer great differences. It should be noted that at present there are more than 15 thousand cryptocurrencies and more than 400 exchange houses that offer options for buying, selling and exchanging currencies.

Micali compares the current situation of cryptocurrencies with the beginning of the internet. If we remember, there were many companies of the type Google or Microsoft, but today you can count on your fingers. Regarding their own creation (SOMETHING), Micali points out that they are looking to be one of those blockchains that stays in the long run, without being based on another network, as happens with most other projects. In this way, you can collaborate with other networks and appeal to a good development as the years go by.

What you should take into account before the end of cryptocurrencies

Obviously, in the face of these statements, the question arises: How to know which cryptocurrencies to invest in and which ones will tend to disappear? Some characteristics have to be analyzed:

• The cryptocurrency to invest should have a different proposal, that is, not be based on another pre-existing blockchain (as happens with thousands of Ethereum-based projects), but have a certain originality.
• The cryptocurrency proposal should go a little further than being a mere exchange asset. For example, there are green projects that seek to facilitate investment without harming the environment through mining, or proposals related exclusively to the subject of gaming.
• If projects allow to have smart contracts and investment funds without intermediaries at 100%, then they will probably be one of the options that prevail.
• Cryptocurrencies belonging to large companies can be excellent options, since they are currencies that are backed by years of experience and because such companies want to offer a higher quality in their products and services through these digital assets.

Currencies that have become popular in the wake of mass hysteria may not work as the years go by. Therefore, you have to be careful with cryptocurrencies such as Dogecoin or Shiba Inu. Since they are not completely supported by what they offer, but by the statements of famous people or due to the tenderness they inspire, for example.