The sight of experienced visionaries and cheaters are always glued towards new ideas. Where the former can analyze it well and aims to enhance it in a new manner, the latter has a different approach to new ideas by worthless hope and blind parroting. If you are abreast of altcoin news today, then you can very well co-relate this analogy with alternate currencies or altcoins that are carved from Bitcoin. By doing technical analysis, you will find that these alternate coins share similarities with Bitcoin including the cryptographic protocol for transaction registration and blockchain to store the transactions. Freicoin, Litecoin, PPCoin, and Primecoin are the few big examples to mention. But today, we will be focussing on the disadvantages of altcoins.
There are interesting new ideas incorporated by the altcoins, but the disadvantage of altcoins proves when Bitcoin becomes ahead of them in comprising essential features. It does not imply technology but community and history. Simply saying, the use of crypto exchange might be more acceptable to the other one on the market. This defines the network effect. The difference between any two crypto exchanges depends upon either exchange which is accepted widely.
The effect seems to be unlimited. Anyone would hope for a single currency to outshine its rivals. There are other reasons which define the disadvantages of altcoins. Bitcoin had an early advantage of the opportunity to make a mark of itself by dragging the users’ interest. In comparison to altcoins, Bitcoin has a larger market, which makes it much worthy as a currency. If an altcoin aims to pull away from the latter crypto coin, then it needs to acquire an extra superficial technology to become an alternative to fiat currency, as Bitcoin has.
It has been noticed that Bitcoin is a centre of interest among the actual entrepreneurs as per its use, whereas, altcoins are surrounded by a bunch of inexperienced people who make airy hopes of cloning Satoshi’s creation. The reason why altcoins drag behind the Bitcoin is its existence, which brings no possible reason for additional value from the financial point of view. It is very tough to imagine the duplication of Bitcoin. And with the growing Bitcoin community, it attracts more entrepreneurs because of its worth. Whereas the altcoin community has no option but to cry for being noticed.
Altcoins cannot be blindly relied upon for stability, which is why there is less expected in terms of use. Moreover, they are used for money laundering. If you are keen on this, then you can rely on ZeroCoin. If ever it comes to define altcoins, then it all depends on the belief on the purpose of cryptocurrencies for money generating, instead of merely being a financial option. You need to be smart enough to ploy people to accept a new altcoin for investment. Then it becomes an opportunity to gain profit via mining, selling, or trading it.
Conclusion
Cryptocurrency today has become a popular phenomenon as an alternate source of money digitally. If you are abreast of the best altcoin news, then you will know that besides Bitcoin, there are altcoins that too are in the race for becoming the best alternate choice for fiat currencies, like Bitcoin. However, there are disadvantages of altcoins which pushes them behind the latter coin. Now it is a trust or liking which Bitcoin has gained amongst the users. Also, it is the first cryptocurrency, which people are more associated with. To outshone Bitcoin, altcoins need to equip with special technology traits. Only then they can come at par with Bitcoin.
