Cryptocurrencies might not be officially recognised as legal tender, however their heavy trading tells another story. Today, there are as much as 650 cryptocurrencies or more in circulation. If you are reading this article, then we suppose you understand that cryptocurrencies are a big deal. To get an in in depth understanding of virtual currencies you must keep reading this guide on the key differences between Bitcoin and Altcoin.
You may also read: Cons and Pros of Bitcoin
Invention of Bitcoin
Satoshi Nakamoto invented the Bitcoin in the year 2008 and published a white paper explaining it as a form of peer to peer electronic cash system. Before 2008, nobody knew anything about cryptocurrencies. Thus, digital currencies were incepted through Nakamoto’s vision of developing a decentralised digital cash system. While you may have understood about the birth of Bitcoin, it is also important to get an in-depth understanding of what Bitcoin is all about. Read all about it in our Glossary titled What is Bitcoin?
The Emergence of Altcoins
The adoption of Bitcoin by the niche crypto community led to the emergence of alternatives to the world’s first cryptocurrency. These alternative coins came to be known as altcoins and their invention came as a result of the issues faced by the community when transacting with or when using Bitcoin.
Some of the altcoins are as follows:
Soon after, the market would be flooded with numerous altcoins. While many of these faded out of circulation, yet many maintained their stronghold in the crypto markets. In essence, Altcoins are alternatives to Bitcoin that come with enhanced transactions speeds, improved hashing algorithms, etc.
Bitcoin Vs Altcoins
There aren’t a lot of differences when it comes to trading in altcoins as compared to trading in Bitcoin. One must note that the crypto markets are marked by a lot of volatility, hence investors should do a thorough research before making an investment in any of the coins. To know about which altcoins can earn you good profits, you may also read our guide titled Best Altcoins To Invest In 2018.
When it comes to digital currencies, even presently Bitcoin maintains the highest market share, even though altcoins like Ripples and Ether are close to giving the world’s first cryptocurrency a run for its money. The popularity of altcoins is owing to the fact that address the issues that come inherent in Bitcoin. Alternative currencies, thus, are much more scalable, have lower transactions times, much lower transaction fees, etc.
With the wish of the community, Bitcoin can also add utilities such as those found in altcoins, however the difference that arises is that most people would prefer a tried and tested model incorporated as a test drive in altcoins such as Ethereum.
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