Curious about Altcoins?

You might have known the ins and outs of Bitcoin. But there are hundreds of other digital currencies, including Bitcoin. These are called “altcoins.” For example, ether, ripple, zcash, monero and dash are only a few. Altcoins can vary in a variety of ways from Bitcoin. Some have a different economic model or coin distribution system, such altcoins, that all citizens of a country have got. Others use different mining proof-of-work algorithms, possibly to withstand specialist mining equipment β€” or they may not even rely on work evidence. A number of altcoins provide a more versatile programming language to add applications, while others provide more privacy than Bitcoin. There are also altcoins which serve specific cases of non-monetary use like registry of the domain name or data storage indicators.

There are many altcoins, however, which are not really popular. The overwhelming majority of altcoins simply change certain parameters that are not significant, or give a sound useful, but are not. When, for instance, an altcoin includes a larger number of coins, it just means that every single coin has less value. If an altcoin finds blocks faster, it only means that more confirmations for a comparable level of security are needed for a transaction.

Many altcoins therefore offer little benefit over Bitcoin. Therefore, they have less hash capacity, less developers and are less efficient because of smaller network effects. And while many Altcoins provide useful features, many of these promises are just that: promises upon closer inspection.

While some altcoins can and do useful tasks (e.g. operating in a testnet capacity or providing more anonymity than bitcoin) and have a future, many more are driven solely by speculation or worse.

About the author

Jeremiah Gan is a Filipino Entrepreneur and currently the Business Development Officer of Bitshares Labs, Inc., a blockchain and web technologies company providing solutions to various businesses in the Philippines.

Comments

  1. Seems like it would be terribly difficult for a new coin to gain in popularity and value. Then adoption of that coin for everyday transactions..Many have come on the seen only to fall to the wayside…

  2. Investing significanty in altcoins is not something I am comfortable with. Other than stablecoins, everything else is up and down and making a profit is very difficult. Honestly, I have backed away from him. I would rather keep most of my funds in stable coins and BTC. I have quite a bit in Compuceeds and Cryptoceeds. Hopefully the value will go up in these. The same is true of the Compumatrix BTC. Hopefully it will maintain value once we go public with it.

  3. The altcoin market has been through tough times. Bitcoin is a directory with entries for more than 5,000 businesses and retailers. Nearly all of them accept bitcoin but the large majority don’t accept other digital currencies. I think altcoins will continue to struggle for their survival.

  4. I have no problems using the internet. If I really got into it, I know I can learn something new everyday. Compared to this article: Curious about Altcoins, the internet is like going back to high school and the World of Cryptocurrency is like taking advanced degrees in a University Doctorate program. The basis of my curiosity is knowing what the function of each coin is for.

  5. First came Bitcoin , but being open source it made way to altcoin, or alternative coin. Cryptocurrency alternative to Bitcoin Altcoins may differ from Bitcoin in such as mining mechanisms, coin-distribution methods or the ability to create decentralized applications.

  6. I have invested on a couple of Altcoins and actually they have been doing really good, one have already triple its value since I bought it. When it comes to investing, I like to follow the rule: don’t leave your eggs in only one basket”.

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