Primary Country (Mandatory)

United States

Other Country (Optional)

Set News Language for United States

Primary Language (Mandatory)
English
Other Language[s] (Optional)
No other language available

Set News Language for World

Primary Language (Mandatory)
English
Other Language(s) (Optional)

Set News Source for United States

Primary Source (Mandatory)
CNN
Other Source[s] (Optional)

Set News Source for World

Primary Source (Mandatory)
AajTak
Other Source(s) (Optional)
  • Countries
    • India
    • United States
    • Qatar
    • Germany
    • China
    • Canada
    • World
  • Categories
    • National
    • International
    • Business
    • Entertainment
    • Sports
    • Special
    • All Categories
  • Available Languages for United States
    • English
  • All Languages
    • English
    • Hindi
    • Arabic
    • German
    • Chinese
    • French
  • Sources
    • India
      • AajTak
      • NDTV India
      • The Hindu
      • India Today
      • Zee News
      • NDTV
      • BBC
      • The Wire
      • News18
      • News 24
      • The Quint
      • ABP News
      • Zee News
      • News 24
    • United States
      • CNN
      • Fox News
      • Al Jazeera
      • CBSN
      • NY Post
      • Voice of America
      • The New York Times
      • HuffPost
      • ABC News
      • Newsy
    • Qatar
      • Al Jazeera
      • Al Arab
      • The Peninsula
      • Gulf Times
      • Al Sharq
      • Qatar Tribune
      • Al Raya
      • Lusail
    • Germany
      • DW
      • ZDF
      • ProSieben
      • RTL
      • n-tv
      • Die Welt
      • Süddeutsche Zeitung
      • Frankfurter Rundschau
    • China
      • China Daily
      • BBC
      • The New York Times
      • Voice of America
      • Beijing Daily
      • The Epoch Times
      • Ta Kung Pao
      • Xinmin Evening News
    • Canada
      • CBC
      • Radio-Canada
      • CTV
      • TVA Nouvelles
      • Le Journal de Montréal
      • Global News
      • BNN Bloomberg
      • Métro
MoreBack to News Headlines
With so many cryptocurrencies, why do any of them have value?

With so many cryptocurrencies, why do any of them have value?

CBC
Thursday, January 6, 2022 4:44 PM GMT

A financial report this week celebrated the launch of yet another cryptocurrency, this time a new LGBTQ-focused coin that aims to "fight against homophobia."

If it takes off, the maricoin, a name which, as Reuters reported, is derived from a Spanish language homophobic slur, may be the kind of niche token that will survive in a very competitive field. Its founders hope so.

With fortunes having been made by many who have introduced coins of their own, there is certainly plenty of competition. But for people turning their hard-earned money into crypto tokens, that raises a bothersome question.

Even if crypto tokens really do have a use and a real-world value — something that remains disputed — and if those tokens can be reproduced infinitely, which blockchain mathematicians say they can, why are so many being traded as if they were in short supply?

As cryptos proliferate, informed sceptics worry a nose-dive could destabilize conventional markets.

The supply of any one crypto, such as bitcoin, may be limited by the algorithm that generates the tokens. But if you need something that acts like a bitcoin, say experts I interviewed, there are plenty of choices.

According to CoinMarketCap, known as a credible source for crypto data, at last count there were 16,394 different crypto tokens trading on 451 different exchanges, valued at something over $2.2 trillion US.

For whatever reason, maricoin had not yet made the CoinMarketCap listing (although you can find it listed elsewhere) indicating that the 16,394 number, while large, may be an underestimate.

Many credible financial authorities say it remains uncertain whether cryptocurrencies will eventually have a real-world purpose that justifies buying a stake. Others are far more dismissive.

A recent report in the Financial Times called them "worse than a Madoff-style Ponzi scheme." Writing in the Globe and Mail's Report on Business, finance professor George Athanassakos's advice on Bitcoin was "Just say no."

Henry Kim is part of a team of about 20 at York University's Digital Currencies project working on crypto and blockchain — the complex math that makes each cryptocurrency unit unique. He says that, so far, the electronic tokens have not been as useful as hoped.

"Bitcoin's intended purpose, to be used as money, has limitations," said Kim, an associate professor.

As many people, including me, have pointed out in the past, the value of the tokens go up and down wildly, meaning few people are willing to make deals that will be settled in bitcoin. Also said Kim, with rare exceptions, central banks frown on its use as actual money.

Kim, who holds a crypto stake in his personal portfolio and as a teaching exercise has generated a non-fungible token (NFT) of his dog Smudge for sale for 0.01 of an ether, said that as yet the only proven value of crypto is as "electronic gold," for a crisis when other assets fall in value. And he says that only applies to the most widely traded examples, with bitcoin and ethereum at the top of the list.

Read full story on CBC
Share this story on:-
Run 3 Space | Play Space Running GamePlay Run 3, the ultimate space tunnel running game with 300+ challenging levels!Adv.
Traffic Jam 3D | Online Racing GameTraffic Jam 3D is a game where you’ll be driving through heavy traffic.Adv.
Duck Hunt | Play Old Classic GamePlay the classic 1984 light gun shooter game Duck Hunt on your browser.Adv.
More Related News
Parking Slot | Free Parking GamePlay Parking Slot, the best online 3D car driving and parking game.Adv.
Slope Ball Run - Play OnlineSlope Game takes you on an exciting journey of a ball on special paths.Adv.
Wealthsimple launches credit card, new line of credit to challenge big banks

Wealthsimple Inc. announced its first credit card and a line of credit Wednesday as it ramps up efforts to challenge the dominance of Canada's big banks.

Fewer Americans are visiting Canada. Ad campaigns assure them they're welcome here

Late last year, Dan Davis of Cleveland, Ohio, began planning a motorcycle trip with friends this summer that includes several days in Ontario. 

DHL Express workers on strike after company locks them out, adding to parcel sector turmoil

Unifor says DHL Express Canada locked out workers just after midnight Sunday as the two sides failed to reach a contract deal, injecting more labour turmoil into the country's parcel delivery market.

Customs brokers are cross-border trade gurus. With tariff whiplash, they're facing 'toxic uncertainty'

Dan Patrick De Los Santos's workday looks very different then it did a few months ago before the Trump administration tariffs upended trade — and his job description.  

Canada's unemployment rate ticks up to 7% in May, highest in 9 years outside of pandemic

Canada's unemployment rate rose to seven per cent in May, the highest it's been in nine years outside of the pandemic, Statistics Canada said on Friday.

Bank of Canada must get comfortable with the unknown as long as Trump is in charge

In two straight decisions, the Bank of Canada has said it was leaving its key overnight lending rate unchanged as it gains "more information on U.S. trade policy and its impacts."

These charts reveal a Canada-U.S. bond forged in steel and aluminum

It's a move that could reshape North American trade.

ETFs are outpacing mutual funds despite market volatility. Are rookie retail investors at risk?

Canadian investors are putting more of their money into exchange-traded funds (ETFs), according to recent data, even as the U.S.-led trade war rocks global stock markets, and some experts say rookie retail investors could be at higher risk. 

© 2008 - 2025 Webjosh  |  News Archive  |  Privacy Policy  |  Contact Us