the article was written By Mickael Mosse – Blockchain and Cryptocurrency Expert
Mickael Mosse points out that, All those different cryptocurrencies or virtual or alternative Bitcoin are recognized as altcoins, that is, that of the more than two thousand one hundred cryptocurrencies listed in the coinmarketcap, the only one that is not an altcoin is the king of capitalization and the flag of many libertarian ideals, the first and only Bitcoin.
The term is the construction or simplification of the words “Alternative” and “Currency”, by which they could be interpreted as “alternative currency”.
Altcoins are also looking for an alternative to Bitcoin's offering: perhaps finding faster blocks or issuing more than 21 million units will weaken Bitcoin, but none of this really represents a strong point or an improvement in the amount of domestic cryptocurrency. One of the biggest differences we find between Bitcoin and altcoins is the number of developers participating and looking to improve the blockchain over the years, and if anything has proven that Bitcoin is the strength of its community across the planet.
If we are honest, not all altcoins will have no future in the ecosystem and many of them only seek to capture the attention and money of investors, promising advances embedded in white papers that they could hardly satisfy. This does not mean that altcoins are bad or something like that as they are an important part of the emblematic cases of the ecosystem like the ethereal, Wallet, Dash, litecoin is an example of altcoins that managed to build a strong community and as a result, have an ecosystem very well positioned crypto asset. What are altcoins and what do they contribute
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| Mickael Mosse Crypto Advisor |
The contributions of altcoins
In the bitcoin whitepaper, we can read what is its motivation and reason for being “a purely electronic version of money would allow online payments to be sent directly from one entity to another, without going through a financial entity. says Mickael Mosse
Thus, each altcoin that followed btw Bitcoin has a promise and a goal to fulfill (some are just illusions and words on paper), others we seek to provide anonymity such as Monero, Horizen, others we seek to be the blockchain is the one where another altcoin comes to life as NEM, or simply becomes the financial sector support Ripple wonders about; altcoin is an important pilot in the ecosystem, while it does not provide real value to the ecosystem.
Why do people invest in altcoins?
As mentioned above, altcoin arises in order to do or fix something public or private, and due to the great impact that Bitcoin had as technology, many projects seek to be part of the solution that can lead to different reasons why people looking to invest in such altcoins:
Speculation or initial earnings in hopes of sudden growth that will lead to big profits
Investment thinking that the idea expressed in the whitepaper can be fulfilled and have or participate in a great idea.
Altcoins to the beat of Bitcoin
Something that has not yet been achieved and that may fail in the short and medium-term altcoin separates from the force with bitcoin by rising or falling in price and dragging the entire ecosystem in the same trend and if many consider that investing in Bitcoin is a little difficult due to the volatility of the altcoins not escaping from being even more volatile.
Proof of this is the following graph where you can see how the price of the ethereal a great alternative currency follows the trend of btw Bitcoin to pay the highest prices at the same time as that of Bitcoin, and the same can be observed in any currency market alternatives.
The word altcoin is an acronym that comes from the words "alternative" and "currency." This term is used to refer to the alternative digital currency Bitcoin, that is, cryptocurrencies other than bitcoin. The development of these altcoins was aided by the success of Bitcoin and its open-source architecture. These are built from branches or "forks" of the btw Bitcoin source code.
Each altcoin is deployed from its own chain blocks and its own P2P (Peer-to-peer network). Also, some altcoins use their own mining algorithm. The most popular are Prof of Work (or proof of work in Spanish) and Prof to Stake (proof of participation). So anyone who has a team that can mine (produce) altcoin, would be able to produce their own cryptocurrency.
These currencies are traded on the financial markets and their value depends on supply and demand. Today, Altcoins cannot be used to transact or purchase goods and/or services. If you want to make a transaction or buy any goods or services, you will have to convert to Bitcoin (if it is accepted on some occasions to make payments). In the event that btw Bitcoins are not accepted as a means of payment in any transaction, it can be exchanged for fiat currency (such as euros, dollars, or yen).
WHAT IS BITCOIN - MICKAEL MOSSE, Cryptocurrency and Blockchain Expert
Mickael Mosse Blockchain Advisor
What are altcoins and what do they contribute
Mickael Mosse points out that, Altcoins are used as an alternative source of financing for business projects related to technology and the development of new digital concepts. When a new project is born, what is known as an "ICO" or "initial money supply" takes place. Project promoters make a series of currencies available to the public that they can buy and therefore finance the projects.
The objective of an “ICO” is the same as that of a public offering for sale (IPO) in the stock market, except that, in this case, the securities that are delivered to the investor are altcoins.
Altcoins advantages
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| Mickael Mosse Bitcoin advisor |
Innovation: Every new altcoin is intended to include or provide technical details that Bitcoin did not initially incorporate. Therefore, they try to improve the functionality of this system.
Disadvantages of altcoins
Liquidity: The liquidity of most altcoins at the moment is small compared to Bitcoin.
Many projects fail Projects that finance altcoins are not always successful.
article from mickaelmosse.com
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