Altcoins. “The future of Money is Digital… | by BT Hustlers | The Capital | Jun, 2022


“The future of Money is Digital Currency” — Bill Gates

An altcoin is the abbreviation of “Alternate Coin.” Altcoin refers to all cryptocurrencies except Bitcoin, so we can say that Altcoin is the “Alternative to Bitcoin.”

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According to CoinMarketCap, there are over 17,000 cryptocurrencies in circulation now, and the majority of altcoins are created and published by developers with a different vision of their respective cryptocurrencies.

The first altcoin was released only two years after Bitcoin launched. Bitcoin was released in 2009, and “Namecoin” was released in April 2011. Then, in October 2011, one more Altcoin was released: Litecoin.

The most popular altcoin is “Ether,” launched in July 2015.

However, Ether wasn’t forked (Forks are when major technical upgrades or changes need to be made on the network) from Bitcoin.

Altcoins are classified under various categories.

Mechanism Based

Mining-Based

There’re two types of altcoins based on Mining.

Proof-Of-Work Altcoins: These coins are generated by solving mathematical problems. Examples are Litecoin, Zcash, etc.

Pre-Mined Altcoins: Ripple and XPR are the best examples of this kind. These coins aren’t generated using an algorithm query.

Stable Coins

Stable coins are very stable in nature and aim to reduce value volatility. Each coin’s value is fixed to an external asset. Famous stable coins are Tether’s USDT, MakerDAO’s DAI, etc.

Security Tokens

Security tokens are tokenized assets that are issued to investors. Any asset can be tokenized, and this form attracts the investors to invest.

Utility Tokens

Utility tokens are used to buy any services. Ether is a Utility Token because it’s designed to be used in Ethereum Blockchain and to pay for transactions. Filecoin is also a Utility coin that is used to buy network storage.

Governance Tokens

Governance Tokens allow holders certain rights within a Blockchain.

Developers construct governance tokens to allow token holders to help define the future of a system. For example, governance token holders can influence project choices such as submitting and voting on new feature ideas and modifying the governance structure itself.

Altcoins are easier to use and decrypted than Bitcoin. As the concept of altcoins came after bitcoin’s success, these virtual coins are advanced in features. The systems and processes of Altcoin are unique. Thus there’s a lot of room for change.

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The main problem with Altcoin is that there is a significant risk to investing in it as many altcoins are scams or end up failing (an example is Luna which crashed 97% ). It’s also difficult to distinguish between altcoins and their use cases, so it’s pretty confusing for an investor to choose the right coin.

Ether (ETH)

Ether was launched in 2015 and is the native Ethereum Currency. Ether holds the second position after Bitcoin in the virtual currency world. A single ETH price is $2042.09, and the market cap is $246,792,686,848 as of May 2022.

Tether (USDT)

Tether was the first cryptocurrency that was marked as a Stablecoin. It was launched in 2014. A single USDT price is $0.9992, and the market cap is $ 74,141,152,444 as of May 2022.

Cardano (ADA)

Cardano was launched in 2017 and relied on PoS (Proof-of-Stake). Cardano’s main application is in Identity management. A single ADA price is $0.5291, And the market cap is $17,712,232,978 as of May 2022.

Solana (SOL)

Solana is both a cryptocurrency and a flexible platform for running Decentralized apps(DApps). It was launched in March 2020. A single Sol price is $51.02 and the market cap is $17,848,886,978 as of May 2022.

Dogecoin (DOGE)

Dogecoin is known as a joke cryptocurrency that was launched in 2013. However, Elon Musk has said he has a positive view of this currency. A single DogeCoin price is $0.08544, and the market cap is $11,335,560,540 as of May 2022.

Polkadot (DOT)

Polkadot was founded in May 2020 by the co-founder of Ethereum, Gavin Wood. This cryptocurrency operates on two blockchains. A single DOT price is $9.85, and the market cap is $9,746,731,693 as of May 2022.

More of these currencies will be released in the near future, which is terrific news for the cryptocurrency community. They’ll also assist in raising cryptocurrency awareness. So Altcoins have a bright future and will stay a permanent component of the cryptocurrency industry.

While the future of these smaller digital currencies is unknown, bitcoin has maintained its appeal among investors and traders, at least in recent years.

The fate of altcoins may be determined by the future of bitcoins.


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