There are two camps in the crypto community. One group believe that there should only be Bitcoin and everything else would branch off of Bitcoin in the form of side chains. Then, there is another group that believes we should embrace not only Bitcoin, but many of the up and coming altcoins. Today we’ll see why Altcoins are just as important as Bitcoins
In any competitive market, there is always competition and the best usually rises to the top. We see this in every type of business. It would be bizarre to not have competition in crypto currency. Many Bitcoin elitists believe that there should only be one cryptocurrency. However, having other altcoins as an option would both spur on innovation. It would also ensure that it truly is the best option out there. Otherwise, we may end up with a Bitcoin that doesn’t fit everyone’s unique needs around the world. Having only one currency in the world would also give Bitcoins too much power. Suppose the core developers made changes that the people didn’t agree with, switching to another coin would be more difficult. Having choice is freedom.
Bitcoin currently has a 3 billion market cap. For this reason, Bitcoin developers hesitate about making changes to the network. This is for good reason, with so many clients.
Altcoins can make changes and innovate much more easily though. This is because they have fewer users, and a lower market cap. There are constantly new altcoins being created. Some are just copies, but we sometimes see an altcoin implement a completely unique idea. These new ideas and innovations can then be be adopted by more established coins such as Bitcoin and Litecoin.
If you want to have a lower risk, diversify. That’s is an old maxim, and it holds true. You wouldn’t want to keep your entire net worth in one bank account. The same can be said for crypto currencies. May Bitcoin investors, also have holds in Litecoin. You can also take risks by investing in more dynamic altcoins, for higher profit.
In older networks, there is a huge difference between new users and older ones. Those who have been around a long time are essentially richer. As Crypto Currencies grow, this gap will only increase. Altcoins will ensure that there is always a balance. There are other altcoins such as Dogecoin and Peercoin that are inflationary with an indefinite creation of coins. This can actually help currencies with limits because there are so many hoarders of Bitcoin, who reduce circulation
Altcoins are a necessity in the world today. Either we adopt them, and help them innovate, or we lose an alternative. As we all know, monopoly is never a good thing. This is why Altcoins are just as essential as Bitcoins.