In the past, monetary transactions were a lot more straightforward. You would get your paycheck and immediately deposit it into your savings account. At that point, you would use checks to pay for things until the next payday came around. Cash was rarely used in day-to-day transactions back then due to its perishable nature. Over time, by using checks or direct debit/credit arrangements, you could spend money before any preexisting balance on your bank accounts was insufficient to cover the transaction. This allowed businesses to entice their customers with a “no overdraft” guarantee while booking their income in full before they saw it.Though it is still a relatively new phenomenon, cryptocurrencies have already entered the mainstream consciousness, as more companies and organizations begin to adopt it. But with the great power cryptocurrency gives its users also come risks that should never be ignored.

The existence of pure cryptocurrencies is still rather new, as Bitcoin just celebrated its ten-year anniversary this past January. Yet the volatile action around cryptocurrencies that we have seen over the last few years has many people wondering what will happen if they fail. The purpose of this post is to examine that question, to see whether or not cryptocurrencies can fail in their current incarnation.

The topic of cryptocurrencies has gained an enormous amount of popularity in just a short period of time. Given that there are over a thousand cryptocurrencies and the fact that they can be purchased at online exchanges, many people have become more interested in purchasing them than stocks. But even though these virtual currencies seem to be soaring high, they could easily fail if they continue to lose key members of their team or fail to get enough governmental approval. In addition, cryptocurrencies are extremely volatile and can be affected by a variety of factors and forces. One thing for certain, is that no one really knows exactly what will happen with these virtual currencies, or whether or not this is just another bubble waiting to burst.

Can cryptocurrencies fail?

From the very beginning, many experts have been wary – some even dismissive – of cryptocurrencies. Now that bitcoin has recently become mainstream, and other currencies are increasingly entering into the general awareness, we may wonder if they are here to stay or if they are doomed from the start.
Indeed, they can. Crypto coins vary greatly in quality. Unscrupulous cryptocurrency promoters’ prey on new investors who are desperate to rake in profits; hence, the promoters do not hesitate to spread fear and misinformation. They want people to buy as much cryptocurrencies as possible, but they don’t want them to actually use it.

Another angle resides in the hands of the next generation. Blockchain technology helps make the dream of decentralization a step closer. The connection between industries is what cryptocurrencies enable. The lines between digital and physical assets are crossed. Instead of a centralized financial system, the idea of decentralization comes into play. There is this global thinking that brings virtual currency together with the real-world economy. It’s fascinating how it will have an impact on the national and global economies. This can be mostly seen in Africa or Asian countries where new ideas with blockchain technology meet their potentials for social and economic growths. There has been an example given by DNotes which was an experiment to make use of cryptocurrency for a small country as Zimbabwe.

The market for cryptocurrencies was small and niche at first, but took the world by storm in 2017. The cryptocurrency market has grown from less than $20 billion to over $770 billion in just two years. A massive expansion by anyone’s standards. With this kind of growth, you would think cryptocurrencies were a sure bet. But can cryptocurrencies fail?

Let’s take a look at some of the evidence:

Since 2013, there have been more than 200 different cryptocurrencies and some of these are currently trading at a huge valuation. For instance, the Pundi X exchange is currently worth $575 million. But as with all new sectors that gain exposure to a large portion of the population, there will be some failures in this sector similar to the way many dot com ventures failed in 2000 or how many mining stocks failed in 2013 due to undercutting or not being able to keep up with the growing demand for Bitcoin.

If you’ve been in the crypto space for some time now, you know that there are a lot of scams. Scams are everywhere these days. In fact, several investors have lost a significant amount of money from cryptocurrency scams. Because of this, we should be careful on who we invest with. Aside from scammers, it’s also possible for a cryptocurrency to fail. There are times when good projects fail or get abandoned by their creators. Given all of this, it’s no surprise that so many cryptocurrencies have failed. Since Bitcoin’s inception in 2009, approximately 2,000 coins have perished. Nine coins have died this year, according to Coinopsy, a website that records dead currencies. It is stated that coins fail or are abandoned for a variety of reasons, including:

• Scams and frauds
• Inability to develop business plans
• Traction loss
• Personal issues confronted the engineers

Let us have a look at a few unsuccessful coins.

GetGems (GEMZ)

GetGems was a social messaging software that let users transfer and receive Bitcoin. Users may earn additional GEMZ by asking their friends to join. It was founded in 2015 by Daniel Peled and raised around $1 million through crowdfunding and direct investment, however it was unable to deliver.

According to CoinMarketCap statistics, its price peaked at $0.0579 in May 2017 before the currency ceased trading entirely. Although it is still in existence as a platform that compensates users for seeing web advertisements, most of its founding goals have been abandoned.

OneCoin (ONE)

OneCoin, which debuted in 2014, was one of the first crypto scams. Ruja Ignatova, the self-styled “CryptoQueen,” staged lavish events all over the world, including one at the Wembley Arena in the United Kingdom. She referred to OneCoin as a “Bitcoin Killer” there.

Millions of investors were later duped in what turned out to be a $4 billion Ponzi scam that utilized money from new participants to pay returns to old investors. Ignatova vanished in 2017, just as the net was closing in and authorities had issued an arrest order for her.


This coin was one among the most well publicized in 2014. The company behind the crypto had grand aspirations to make electronic currency available to people all around the world. They also deployed nano-satellites that were meant to serve as the supporting infrastructure for their fantastic coin.
Despite the fact that the team appeared to have all of the required components for a successful crypto, nothing came of it. After a time, the bitcoin news just stopped coming in.

BitConnection (BCC)

BitConnect, which was launched in 2016, is another now-famous fake currency. The currency reached an all-time high in December 2017 and was one of the top performing currencies on CoinMarketCap that year. However, it was worthless just a few months later.
Its aggressive marketing offered daily returns of 0.5 percent to 1 percent, as well as additional incentives. However, it was a pyramid scheme, similar to OneCoin. The enormous returns it provided were backed by fresh investors, and when the platform failed, many lost everything.

Ethereum’s DAO

The Autonomous Decentralized Organization Because people have such high hopes for cryptocurrency, its collapse is likely to be the most historic. The DAO was established in 2016 and had an instant impact on the market. Many people had hoped for such a project, and its completion symbolized the fulfillment of hopes. In reality, the cryptocurrency has attracted millions of dollars in investments, totaling $168 million. However, it did not take long for the project to fail. The loss of $50 million as a result of an attacker’s successful intrusion into the system heralded the beginning of the end for the cryptocurrency.

With thousands of crypto coins flooding the crypto market, it is important to understand which ones are still out there and which ones are dead. A lot of new investors in the market have a difficult time using their due diligence to choose which coins to put their money in. This makes it vital that you as an investor, do your own research to ensure that you understand the fundamentals of each coin you are interested in investing.

In conclusion with regards to the question of Cryptocurrency failing, it is no doubt that computer algorithms have the potential to exacerbate ingrained racial and other prejudices in credit scoring and financial choices rather than reduce them. The pervasiveness of digital payments may also obliterate any lingering traces of privacy in our daily lives.

While Bitcoin’s volatile pricing attract attention, the revolution in money and banking that it has sparked will eventually influence all of us, for better or worse.