We all know that bitcoin is the best cryptocurrency available in the market. Bitcoin highly dominates the cryptocurrency market, but one cannot ignore the fact that there are other alternatives, too, like altcoin. So, it becomes important to know the reasons why bitcoin is a better investment than other cryptocurrencies.
An altcoin is known as the variation of Bitcoin. The developer introduced altcoin to improve the functionality of cryptocurrencies and include new features. However, their value depends on speculation and demand and supply graphs.
Bitcoin is the first virtual currency that came out in 2008 or 2009. The token was invented by a group of people or pseudonymous person Satoshi Nakamoto. It is a decentralized digital currency based on a peer-to-peer computer network. Sign up on this platform, to not know more about bitcoin. The key feature that impressed everyone was that it does not involve any intermediary. In other words, no bank, financial institution, or government can control, own, or monitor this cryptocurrency.
The concept of Bitcoin has become so popular these days that there are rumors going around that Bitcoin may even replace the money.
The word Altcoin is a combination of “alt” and “coin” i.e. alternative of bitcoin. It is used for other cryptocurrencies that also use the technology of blockchain for securing transactions.
The purpose of making the token was to appeal to different ranges of users by slightly modifying the functionality of Bitcoin. It involves less energy consumption and is available with various features. Currently, there are 7000+ altcoins in the market as of Nov 2021.
Altcoin developed from the success of bitcoin but contained a slight change in its rules. Like Ethereum, the second-positioned cryptocurrency as per market cap came up with the concept of smart contracts. These smart contracts become applicable only when the basic conditions are fulfilled. The agreement between two partners is carried out using blockchain technology.
After the emergence of altcoin, the transaction, and scaling process to meet the requirement increased. Moreover, as altcoin continues expanding its usage, many people wonder if it will end the original cryptocurrency, bitcoin. But Bitcoin still stands in the first position in the crypto market.
The top advantage of Bitcoin is its proven security and safe network. Not to mention bitcoin has proved to be the best cryptocurrency investment. In other words, it’s known that most tokens cut out some differences based on smaller use cases like a prediction. Also, cases like adding a decentralized name server or being anonymous.
An altcoin can take over bitcoin in the future, given they show a lot better utility in the present scenario. However, one also has to keep in mind that bitcoin is still evolving in unexpected ways. If you plan to trade bitcoins or any other altcoin, be informed first. Don’t just act based on somebody else’s success story. First, know for yourself how the whole thing works.