We all know how Bitcoins have brought about a revolution in the present economics. The concept of currency is being evolved. But knowing about the ins and outs of Bitcoin is not enough. There is a variety of other digital currencies out there. These are known as ‘Altcoins’ or alternatives to Bitcoins. Some of the examples are Monero, Dash, Ethereum, Ripple and Zcash.
There is a distinction between Bitcoins and Altcoins. Some have different economic frameworks or different coin-distribution method. Some companies adopt different proof-of-work mining algorithms to resist specialized mining hardware. Some may not even rely on proof-of-work at all. Some Altcoins may offer a more flexible programming language to build applications while other may remain more focused on privacy. There are other very specific cases as well.
There are even some Altcoins that are not at all interesting. They have just changed some of the already existing features and offer features that sounds useful but are not in reality. So they may offer no benefit over Bitcoins at all. They may even have less hash power securing them. There is a less involvement of professional behind its development and improvement. This makes it less desirable. Some Altcoins promise to offer exceptional features but a closer inspection suggests that these promises are just promises nothing else.
This may make it riskier than Bitcoins. The exchange rates may be more susceptible to change that the value may not be maintained like Bitcoin. Most Altcoins have also been considered as clear scams which have an objective to enrich the inventors. This requires the buyers to be aware.
Why should you use Altcoins then?
As discussed above, Altcoins are not safe. But the similar can apply to Bitcoins as well. There are cases where they have turned out to be a scam as well. This gives us many reasons to use Altcoins as well.
There are always two sides of the story. Altcoins have its own pros and cons associated. Many are of the view that Bitcoins are not perfect. They are made to handle typical situations. In case where a novel situation occurs, Altcoin would be a preferable choice. Many of these are niche products.
Using Altcoins as payments is considered preferable by many people. We have even seen that the value of Altcoins fluctuate more heavily in a positive manner than Bitcoin. Many investors consider it as a valuable investment compared to Bitcoin. Nevertheless, this is just a matter of speculation.
These cryptocurrency alternatives are considered the future by its enthusiasts. The risks associated with payment processing are eliminated hereby. Others have more specific applications like purchase of specific product or online tipping. It can be used to run smart contracts eliminating the room for errors.
We don’t know the future of it but it has be anticipated that it may even overcome Bitcoins in many aspects. Nevertheless, there are two arguments on it. Some may be in favor of Bitcoin while other are proponents of Altcoins.