In 2009 Satoshi Nakamoto put a spark in the digital currency world and named Bitcoin. There are no physical appearances of Bitcoin, only electronic existence and storage for cloud. Cryptocurrencies including Bitcoins are generally secure payment mechanism and uses blockchain technology.
After the success of Bitcoins we have come across “Altcoins”. Altcoins, as very much clear with the name it is the alternate to Bitcoins. Influenced with bitcoins, Altcoins has stepped in the cryptocurrency world with the similar basic framework.
Similar or different ?
“Nothing in the world is perfect, almost perfect is the word”
With huge success and revenue, we cannot say that bitcoins are perfect and so there are various areas of opportunity.
Price and Popularity
In march 2010 price of 1 bitcoin was $0.03 and now it has reached to the moon. There have been various ups and downs, however Bitcoin has managed to grow anyhow. Every rise and fall in bitcoin affect the whole cryptocurrency world. There are hundreds of altcoins in the market now, but none of them is comparable to the price of bitcoins.
When it comes to the coins Bitcoins are the most popular ones in the digital and non‐digital world.
No wonder bitcoin is leading in popularity and price, but when it comes to, technical features, various Altcoins can address limitations of Bitcoins. Altcoins possess different hashing algorithm, block size and privacy protection.
As said, Altcoins have a similar basic framework like bitcoins most altcoins offer mining process and offers peer to peer technology to facilitate instant payments. Altcoins within themselves are widely different than each other in the areas like transaction speed, privacy, proof‐of‐stake, DNS resolution, etc. Some of the coins like ripple has enhanced protocols to make payment easy.
Though the crypto currencies seems to have strong back itself( not all but many), they are not backed by any bank or government and hence you invest in them at your own risk. It is a good investment advice, if you have a knowledge and art of playing with the coins.
As Altcoins price is very low they are basically “Pump and dump” coins and are a good option to make a profit for investors. If you are planning to invest in altcoins do check about their developers and the mechanism they follow. It is very much important to have your own research before putting your money at stake.