CRYPTOPEDIA

Bitcoin versus Altcoins

It is hard to argue about a popularity of Bitcoin all around the world. Bitcoin is a gold of a new generation, which is attracting the attention of ordinary people, investors and businessmen from different countries in the world. The idea of Bitcoin is truly innovative: its decentralized character can change the undressing of the modern world. More than 1000 Altcoins were created after Bitcoin. Blockchain is attracting a huge number of industries and projects. Many of them make a decision to create their own alt coin and apply blockchain in their technology. But what is the essential difference between Bitcoin and other alt coins? What do the most popular people say about it? What is the future of Altcoins? There are still many questions that remain unanswered.

Learn more about the most popular cryptocurrencies here. 

Jimmy Song about Bitcoin

If you are a beginner in Bitcoin industry, the last few months have probably been crazy for you. You could see the rapid rises and disappointing price drops, and controlling your emotions was not always easy. Price movements are simultaneously fascinating and painful. Therefore it is easy to lose an understanding of what you are actually investing your money in. It seems that all coins are in a a constant movement, so what’s the difference? How to distinguish one coin from another? And, more importantly, how does the investor understand what will be the long-term value of a particular coin?

Real Innovations

To understand the true value of Bitcoin, it is useful to recall the history of this cryptocurrency. Some people believe that a new altcoin is something that will finally “improve” Bitcoin and solve its problems. In other scenarios after other more alt coins conquer the crypto-market, Bitcoin would finally be sent to the “dustbin of history:. Indeed, almost every new altcoin, every new ICO claim that they present some fundamental innovations. However, the greatest innovation has already happened.

Decentralized limited emission is a real innovation. Bitcoin was the first and is still the only coin, which represents this technology. All other innovations – faster confirmation of transactions, transition to proof-of-something, turing completeness, signature algorithms, and other methods of ordering transactions or even privacy – these are just minor variations of one huge innovation called Bitcoin.

It is important to remember that since 2011 various alternatives to Bitcoin have been offered, but none of them has even come close to replacing it in terms of price, user base or security. IxCoin was a bit of Bitcoin in 2011, which offered a higher reward for the block and the pre-win (large quantities of coins were sent to its creator). Also in 2011 was created Tenebrix – altcoin, which tried to increase the stability of the GPU and also had a big pre-goal. At the same time, Solidcoin was also created – another altcoin with faster block creation time and the same pre-fault. The only surviving altcoins, which appeared at the dawn of the era of cryptocurrency and did not have a pre-mission, were Namecoin and Litecoin.

Network effect

Since the Bitcoin network is the largest in the world, other coins actually try to catch up with it all the time. If you imagine Bitcoin in the form of a week of seven days, altcoins are only variations: Let’s make a week out of 4 days! Let the day last for 18 hours! Let’s call the days somehow different! Let’s change the duration of the week, depending on the desire of one person!

Needless to say, all these “innovations” are at best insignificant and are usually not accepted. This is because over time the network effect of bitcoin only grows, and people who use the network tend to optimize its standards and create new norms.

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blockchain, ICO, bitcoin, ethereum, mining

CRYPTOPEDIA


Bitcoin versus Altcoins

Published by blockchain, ICO, bitcoin, ethereum, mining