Better Understanding of the alternation od the Crypto World

The altcoins means any digital currency or cryptocurrency inspired by Bitcoin. The term literally means “alternative to Bitcoin”.Altcoins can offer Bitcoin-inspired operations with some variations, for example with new consensus rules, but they can also propose a completely different one by starting from scratch.

Variations of Bitcoin

That said, most altcoins use the same basic elements as bitcoin. This approach is relatively easy to implement insofar as the Bitcoin blockchain is an open source platform. It is therefore easy to “forker”.

Some altcoins have internal rules that encourage certain uses and treatments. Principles such as minimum spending, or positive or negative interest in stored “wedges”, can, for example, encourage or discourage hoarding. The rules and compensation for creating “money” and validating new blocks of a blockchain may also work differently than those of Bitcoin (mining). Other altcoins introduce limitations in mining to reduce the benefit of servers and specialized farms. The Alternative Cryptocurrencies can also store different metadata on previous “corner” transactions.

A multitude of Altcoins

  • While some altcoins are attempts whose sole purpose is to enrich their founders (via questionable ICOs) and offer little novelty, many alternative cryptocurrencies have found niches.
  • Since the creation of Bitcoin, more than 500 altcoins have been created.
  • Among the most popular (media) are Litecoin, Ethereum, Bitcoin Cash, Ripple or Monero, Dash and Zcash (the last three are for the total anonymity of transactions).
  • The list of “altcoins” is constantly evolving (since everyone can create one, via an ICO).
  • Speculative “investments”, not “currencies”
  • However, several financial authorities around the world warn that investments in altcoins (as in Bitcoin) are highly speculative and even dangerous for investors’ capital.
  • The names “alternative currency” and “coin” (coin) are also debated. Several economists specializing in monetary issues warn that it is not money but “assets” – moreover very volatile.
  • These authorities call investors to pay attention to companies that issue – without regulatory framework – altcoins.

For example, a project like EOS was publicly mocked on a popular American show ( the “Last Week Tonight with John Oliver” ) to warn the general public against the dangers of dubious Altcoins.

EOS has raised $ 1.5 billion in just nine months for a “currency” that relies on a product that does not yet exist, and while the Wall Street Journal describes the company as “a startup that does not plan to sell software. It had taken seven years for Facebook, and five for Uber to raise such sums while their services existed and they had reached a leading position in their respective markets.

Difference between alternative Altcoins and Blockchains

It is also necessary to confuse the Altcoin and the blockchain which motorizes it, even if they can have the same name.

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