The market for cryptocurrencies is exploding. Since its launch, bitcoin has skyrocketed in value. Ethereum is trading at an all-time high. And some commentators speculate that altcoins, or other cryptocurrencies, could be poised to challenge bitcoin’s market dominance in the near future. For example, dogecoin, a relatively obscure cryptocurrency until its relatively recent explosion in value, momentarily enjoyed a market cap that rivaled Twitter.
While a handful of cryptocurrencies have become household names, the world is awash in digital coins. There are over 4,000 cryptocurrencies that can be bought, sold or traded on various exchanges and platforms, all with varying degrees of risk. The rise of these other digital coins may create significant investment opportunities. But regulatory uncertainty about the status of cryptocurrencies leaves economic transactions based on cryptocurrencies subject to regulatory attack and private litigation.