Bitcoin and Its Alternative Cryptocurrency Offsprings: How to Find the Non-BTC Coin Gems?
Bitcoin came into existence almost a decade ago as an entity which aimed at disrupting the traditional centralized financial institutions.
Since the launch, a number of other cryptocurrencies have forayed into the crypto ecosystem, and the coin market cap listing suggests there are 1600 of them listed on the trade market. Altcoin is the name given to any cryptocurrency which is not Bitcoin and by the definition, even the formidable names like Ethereum and Bitcoin cash falls under the bracket of Altcoins.
Since the inception of the crypto trade market, thousands of altcoins have been listed and the majority of them have already perished and seen the doors of the crypto graveyard. So what really makes an altcoin survive the volatility of the trade market?
There are various factors which ensure the success of a form of currency and the biggest factors is acceptance and use. People might tell you many things like a real-world store of value backing the currency, be it gold or petroleum, but the truth is acceptance is the biggest factor in the success of any entity, be it digital or traditional ones.
As you know, Bitcoin is not backed by any physical entity like gold, and despite that, it has maintained its numero uno position in the crypto market over the past decade. This is only possible because people believe in the vision of Bitcoin and its technology.
The number of vendors accepting Bitcoin is only growing by the day and until the time people keep using Bitcoin, it would survive any trade market volatility and bearish trends.
Altcoins: How to Differentiate Between a True Asset and a Potential Scam
The phenomenal price rise of Bitcoin in 2017 brought a ton of attention to the crypto space and it also grabbed the attention of scammers who saw the opportunity to make some quick money.
After 2017, anything remotely related to crypto or blockchain rose the ladders of trade market charts as was the case observed in new altcoins being listed on the trade market. Take Tether, for example, one of the most popular stable coins, and despite being based on the decentralized protocol, Tether has lost almost $31 million to scams and hacks back in November 2017.
Security plays a very important role in differentiating between the true asset and a potential scam. If the services of a particular altcoin have been subjected to hacks, chances are they are not worth the investment.
The security factor does not just weigh in for the technology in use but also to the core team behind the network responsible for its functioning.
Acceptance level Also Plays a Pivotal Role
Satoshi Nakamoto, the creator of Bitcoin did not invent the digital asset in hopes of acing the trade markets, but as a tool for developing, nations troubled by the monopoly of the banks. Bitcoin might be facing heavy resistance in the trade market, but its acceptance level has made it the golden goose of the crypto world.
If you want to invest in a particular altcoin in the long run, look how widely the digital currency is being accepted on a global scale. Unless the entity finds use in the real world, its trade market value is just a mirage.
Not all altcoins are worthless, but the main issue is the short mindset of people looking at immediate monetary gains rather than betting on the bigger picture. There are many altcoins and forked chains of those altcoins which have strengthened its position in the market.
Be it Ethereum or Bitcoin cash, the true potential lies in investing in the technology and refining it over the years as per the current standards, only forming a coin won't take you any futher than a successful ICO.