What you need to know about altcoins
Interest in the cryptocurrency industry keeps growing since 2009 all around the world, but the attention is not only focused on bitcoin. As for April 2021, there are over 9,000 other coins on the stock exchanges. The recent growth in the capitalization of major cryptocurrencies is certainly attracting investors to multiply their gains through investments in bitcoin or the most promising altcoins. In the article, we will give you the answer what refers to the concept of altcoins.
As you know, the world’s first crypto-currency was Bitcoin, launched in 2009. The developers aimed to create an independent digital currency for online payments. By the time the first altcoin with similar functionality appeared, almost two years had passed. Later, the idea of decentralized currency was accepted by many companies, which facilitated the issuance of new coins, based on bitcoin’s open code. Altcoins are characterized as similar to BTC in the term of functionality algorithms and are called to deal with bitcoin vulnerabilities. According to CoinMarketCap, Ethereum, Cardano (ADA), Polkadot, Uniswap, Litecoin, Enjin are the most promising altcoins in the term of market capitalization.
Altcoins differ in their functions and the sphere of the appliance. Operating on their unique blockchain, these networks are not just copies of the first cryptocurrency. Technically, altcoins do not depend on bitcoin, but their value obeys the law of supply and demand. However, it mainly refers to famous blockchain projects. Startups that haven’t managed to fill a niche and hold the community’s attention, react harshly to fluctuations in the rate of Bitcoin. However, to varying degrees, Bitcoin’s volatility affects the entire cryptocurrency market.
There are some bitcoin aspects that altcoins can solve or improve. For instance, transaction confirmation speed with bitcoin can take up to an hour, since some altcoins provide near-instantaneous validation speed! On the other hand, there are plenty of projects that look further and don’t focus only just on the crypto industry and financial sector. They develop the cloud storage, function in the gaming industry, or let’s say, work on decentralized applications. They strive to make cryptocurrency payments even faster and more secure, introduce innovative technologies in all spheres of life, and integrate the global economy into cyberspace.
However, we can conclude that crypto-currencies (altcoins) of the second and third generation became much more sophisticated and technically advanced compared to their famous parents. It gives us hope that more and more altcoins will find their place in areas of human activities to facilitate our life.
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Valentina BEREZA, Team bit4you
