Consolidation- It's Happening!
The leading and progressive brains of the cryptocurrency space have identified this need beforehand.
Mergers and acquisitions within the cryptocurrency industry are making way for some consolidation, finally!
Coinbase, a leading crypto exchange, has bought cryptocurrency facilitating startups like Tagomi, Routefire, and Bison Trails.
Coinbase is listed on the US stock exchange and hence is a public company now. It is planning to acquire Dharma- a leading cryptocurrency wallet.
Lightyear, a crypto company working on the Stellar network, has acquired Chain.
Binance funded the Indian cryptocurrency exchange- WazirX. WazirX is India’s leading cryptocurrency exchange today. Similarly, Kraken bought the Australian exchange- Bit Trade.
Coindesk bought TradeBlock.
FTX, a cryptocurrency derivatives exchange, acquired Blockfolio- a leading crypto news platform and portfolio management application.
B-Harvest was acquired by Tendermint.
With Ethereum bringing in various hard forks to enhance its user experience and limit the transaction fees, a few tokens are planning to merge with Ethereum. The Ethereum 2.0 launch will see such mergers on a larger scale.
Digital Currency Group (DCG) owner, a Bitcoin billionaire, Barry Silbert, is keen on acquiring promising startups in the cryptocurrency space. To begin with, he bought Luno Wallet.
The year 2020 was packed with mergers and acquisitions in the cryptocurrency world. A better 2021 is expected to keep the cryptocurrency industry in safe hands going forward.
Why Two Cryptocurrencies?
Cryptocurrencies are being adopted worldwide for their decentralized nature of transactions. It is backed by the technology of Blockchain, which makes it different from the prevalent fiat currency.
The speculative trading in the cryptocurrencies causes its price to fluctuate; thus prompting the traders to own several cryptocurrencies.
But why would you like to have two different currencies, only for transacting with each other?
Does it not take away the essence of a decentralized and easy mode of transacting- the core feature of cryptocurrencies?
Nobody wants to have ten different currencies in their pocket and ask the shopkeeper which one they are comfortable with.
And waste time and bear transaction charges to convert one currency to another, just to adhere to the recipient’s terms.
This is not what Satoshi Nakamoto would have dreamt of! Hahaha.
For example, let's say you own 4 XRPs and want to buy a pair of pants costing 10 DOGE from an online store. In this case, you will first have to convert your XRP to ETH/BTC and then convert ETH/BTC to DOGE on a cryptocurrency exchange to buy the product.
In the process, you will end up paying transaction fees twice, making your pair of pants too expensive.
