The Purpose Of Altcoins And Their Existence

Posted By Priyansha Sinha | 20-Sep-2018

The purpose and significance of altcoins and its existence

Bitcoin was indubitably the first and the largest cryptocurrency to ever exist and was the only definition of a crypto coin back then. However, with a lot of speculations going around, Bitcoin faced drastic predicaments that led to its unstable market value. This gave rise to a different species of cryptocurrency development other than Bitcoin that went live with the name of “Altcoins” or in other words, the alternatives to Bitcoins.

 

The Definition Of Altcoins And Their Relation With Bitcoins

 

Other than falling under the category of being a successful cryptocurrency, bitcoins are technically many other things. It is essentially a software that users can run and an underlying blockchain that facilitates and keeps a track of people having whichever bitcoin.

 

While the core concept of blockchain was devised by the creator of bitcoin, it has no monopoly on the crypto technology. The businesses and enterprises can create their own blockchains and cryptocurrencies, and that’s specifically what cryptocurrencies are for.

 

Since altcoins are the alternative cryptocurrencies formulated after a big hit of bitcoins, they are currently projecting themselves as a much better substitute to bitcoins. For instance, some of the largest altcoins that you’d ever heard of include:

 

  • Litecoin
  • Monero
  • Bitcoin cash
  • Ether
  • Ripple

 

These are a very few examples. The truth is that anyone can create cryptocurrencies and overall, there are thousands of altcoins available in the market today.

 

Also Read The Obscured Requisite Of A Cryptocurrency Wallet Development

Why Are Altcoins Continuously Being Created?

 

Well, there can be two possible answers to that, and that totally depends on how you want to perceive them.

 

The technical reason is-- Bitcoin has inherent complications mainly because of its design and the businesses feel that they can greatly improve it. For an instance, the bitcoin transactions take a huge and notable amount of time to process and usually have high processing fees. Therefore, some altcoins are designed in such a way that they have a faster processing time and lower fees.

 

Some altcoins, such as Monero, have a more anonymous design, which clearly allure people to invest more in them. Also, people who admire the notion of cryptocurrency but are sceptical about bitcoins are more attracted to altcoins as a permanent solution.

 

The other reason is more monetary and less technical. As Bitcoin has greatly swelled up in values, more and more people look up to the cryptocurrency market with the dollar sign in their minds. If they are successful in making a brand new currency and get on an easier platform where they can be mined without any hassles, they can probably sell it after the values skyrocket and make a good amount of money.

 

A Final Note

 

Many investors are already presuming altcoins as the possible replacement and a better scope for being the next bitcoin of the current generation. Apart from this, they are also contemplating altcoins to have a big and dramatic impact on the market value that would lead to immeasurable growth. And with all that happening around so fast, the total money of the industries involved will significantly drive up the market value of these altcoins.

 

What do you think about the scope and the purpose of altcoins? Jot it down in the comment section below. Also, if you are interested in creating your own Altcoins, we are ready to help!

 

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