Cryptoland: Bitcoin gets all the attention, but what about the thousands of other cryptocurrencies?
So far Bitcoin is having a decent 2021. The cryptocurrency hit a record high of more than $41,500 last week, continuing the upward trajectory it has been on since April of last year, when a single Bitcoin cost less than $5,000. That rise now means that the sum of all Bitcoin in existence is theoretically worth more than $600bn — although that number is usually up or down a few billion depending on when you refresh the web page.
Because Bitcoin dominates much of the media attention, it can be easy to forget just how many other cryptocurrencies there are. A quick look through the full list from coinmarketcap reveals no fewer than 120 cryptocurrencies with a "market cap" of more than $100m - each hoping that their unique take on the core blockchain technology will be enough to propel them out of obscurity.
In some cases you can't help but think someone is having a joke, or even peddling something a little more nefarious. Going further down the list there is a "dogecoin" a "YEP COIN" and even one called "PancakeSwap" (???).
This time it's... different?
Are some of the most dangerous words for any investor to believe wholeheartedly. Whether this latest Bitcoin rally proves more resilient than the previous highs is yet to be seen. Even in the last few days Bitcoin has shed ~15% of its value, reminding people that it is certainly not (yet) a reliable store of value.
The long-term upside case for Bitcoin also remains, at the very least, somewhat anarchic. If the end goal is to become the currency of use for the entire planet then something probably has to go disastrously wrong with the institutions behind our current system — government backed fiat currency. That's a bold bet to make.
