The concept of cryptocurrency became famous in 2009. Bitcoin being the first crypto token dominated the global investment market. The primary purpose of Bitcoin was to allow peer-to-peer transactions. It means you can buy and sell tokens on a network at ease without depending on any third party. Bitcoin made use of blockchain technology and decentralized finance on it. Decentralized finance allowed users to undertake transactions without a third party. It also nullified the influence of regulatory authorities and central banks. Additionally, Bitcoin also made use of the blockchain philosophy. It means every user transaction is broken down into multiple units of blocks. These blocks contain useful information about each unique transaction. Here is the future scope of Bitcoin investment and ease in undertaking transactions attracted technological advances.
Growth of Altcoins
With Bitcoins roaring success, many developers created other crypto tokens. Altcoins are nothing but crypto tokens other than Bitcoin. Today, there are more than 14k+ crypto tokens in the global market. Put together these crypto tokens take a market share of more than $3 trillion. But an important point to note is that Bitcoins still make up more than 50% of this market cap.
Like Bitcoin, these alternate coins have also increased in terms of price and market volume. Bitcoin competitor Ethereum has grown more than 500%. Shiba Inu, another popular crypto-token, has grown by more than 380k%.
Understanding Altcoins and their utility
Altcoins are nothing but alternative investment tokens to Bitcoin. All these tokens use Bitcoin philosophy as their benchmark for operating. However, the purpose, features, and utility of these tokens may vary compared to Bitcoins.
Altcoins include various features and address certain disadvantages of Bitcoin. For example, Ethereum offers a scalable and flexible platform compared to Bitcoin. Also, the transactions are undertaken at a faster pace using Ethereum. Cardano also allows for peer-to-peer transactions. The platform also supports the development of various apps on the network.
Also, not every altcoin competes with Bitcoin. There are crypto tokens that aim to build a better platform using blockchain technology.
How is Bitcoin different from altcoins?
Despite altcoins market popularity, these tokens have not been able to disturb Bitcoin. It continues to retain its top position in the market. There are various reasons for this success factor and a few are enumerated below.
Better network and recognition
Yes, Bitcoin brought in the concept of blockchain philosophy. Being the first in the industry, Bitcoin continues to enjoy this supreme power. The token continues to dominate the crypto industry for its market volume, users, etc.
There is a diverse community network that builds up the blockchain network. The network is also accessible globally.
Reliable platform without a downtime
Yes, you heard it right. Since 2017, the Bitcoin platform has been operating without any hindrances. This up-time is something that is not compromised. Popular social media like Facebook or Google have not provided this up-time on their servers. Bitcoin has also survived many external hacking attacks with a 0% success rate. Also, Bitcoin has got more than a decade of experience in the crypto industry.
Does Altcoin affect the price of Bitcoins?
The simple answer to this question is No. Altcoins and Bitcoin use the same working model. However, these are independent tokens. Altcoins do not affect the prices of Bitcoin or result in inflation.
Bitcoin tokens are an innovative strategy for how digital currency can operate. The blockchain philosophy offers a working model to enable faster transactions. Both these innovations go hand in hand to provide Bitcoin a supreme power.
Bitcoin continues to hold its market position despite altcoins market performance. The market performance of Bitcoin has been depressing in the current year. But many market experts believe that the prices of Bitcoin will rise. As per reports, the price of Bitcoin may reach an all-time high of $100k. Hence, the current market condition is the best time to invest.
Ensure that you conduct a thorough market study of the Bitcoin market and altcoins. Diversify your funding to ensure that you do not lose all your savings. Also, do not make all your investments into cryptos. The evolving government regulations and lack of clarity need your attention. Ensure that you understand your local regulations about cryptos before investing.
