What Is An Altcoin And Why Do They Exist?

By Steven Krohn · March 19, 2018

“Virtual Currencies may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.” – Ben Bernanke

Altcoin: Altcoin stands for ‘alternative coin’.  Altcoin is a standard name for any advanced cryptocurrency such as Bitcoin. The term remains as “a competitive preference to Bitcoin.”

It can describe cryptocurrency that isn’t Bitcoin.  This advent is not difficult to achieve as Bitcoin is a free, open-source stage platform.

One pioneer altcoin introduced to the digital currency market is known as Namecoin. It was created in April 2011 directly after the formation of Bitcoin. It was one of ten altcoins.

The goal of Namecoin’s creation was to decentralize domain registrations. Namecoin is still among prolific altcoins and is also utilized as a computerized money installment interest.

Many altcoins are fundamentally the same as Bitcoin:

  • They are created through a mining procedure.
  • They depend on a shared system thus they are decentralized.
  • They offer a less expensive and more effective method for trades and exchanges.

Altcoins are tokens on an open blockchain made for a particular reason. They can be layered on a current blockchain like Ether or Bitcoin. Altcoins also have properties that are intended to meet a particular need.

They are used to subsidize new companies in lieu of offers.  The coins are often used by philanthropies to keep property rights or data streams.

We are using an Altcoin called AI-COIN as a speculation vehicle that has two income streams. We exchange the cash from the Altcoin dispatch using artificial intelligence models. Then we take the benefits from exchanging those models and leverage them to fund new companies in the blockchain and AI enterprises.

What Is The Best Altcoin?

It is exceptionally hard to determine which altcoin is the best. There are more than 700 selective cryptographic forms of money. Not every one of them can be seen as something that is worthwhile.

A small number of coins are worth your consideration. To attempt to identify which altcoin is a blue blood investment, important elements exist that should be considered.

It’s important to determine if the organization gives to its clients. Also, is the organization helpful to the masses?  There should always be a group of developers behind the venture. Make it absolutely crucial that the group is gifted, committed, and creative.

Lastly, another key component is that the cash is settled and received. Still others look for obscurity. Significantly more look for the basics such as whether the coin is secure and safe from any sort of extortion or burglary.

Why Do People Keep Creating Altcoins?

One of the reasons is that Bitcoin certainly can have its share of “issues,” therefore individuals feel that they can improve upon it. For example, Bitcoin exchanges often have high fees. Additionally, it can also take a significant amount of time to process on the exchanges.

Thus some altcoins are designed to reduce expenses and increase the speed of processing. .

Yet another reason is not so much cynical but more money related. As Bitcoin has increased in value, individuals look at the cryptocurrency market and see dollar signs dancing in front of them.

Interestingly, people can make a coin and get in on the ground floor. When it can be simply mined, they can sell it after it drops in value and make a tremendous profit.

The Popular Altcoins Include:  

Ethereum: It is the most interesting use of blockchain technology. Ethereum does have its own currency, Ether. It uses blockchain technology to record and verify all transactions. Ether is the digital money created by the Ethereum platform, so this cryptographic money is frequently called Ethereum.

Ripple: Ripple is owned by a private company, sending digital IOUs and settling with traditional money.

Litecoin: Litecoin was initially a fork of Bitcoin. It uses an alternate confirmation calculation that is more reliant on memory, while Bitcoin is more dependent on processing power. The Litecoin system tries to complete a block four times faster than Bitcoin, Simply put, Litecoin is designed to speed up transaction confirmations.

Monero: Monero is intended to be “secure, private, and untraceable”.  Unlike Bitcoin, exchanges on the blockchain can’t be traced back to individual clients.

Ultimately, people need to consider their risk tolerance. Then they must be certain that purchasing altcoins is a fit for their specific situation.

Altcoins can be a valuable short term trading asset for investors who have the knowledge and patience. The coins can potentially be a legitimate long-term asset. However, be sure to do your due diligence before investing in an altcoin.

Consider performing an analysis of the digital currency environment before settling on a long-term decision to hold altcoins.

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Becky Tengwall

Thanks Steve! Your info is very timely. I’ve noticed that more and more companies are now accepting bitcoins and other forms of cryptocurrency, so I’ve found your articles very interesting!

Becky Tengwall

Thanks so much for our timely article, Steve. I’ve noticed that more and more companies are now accepting bitcoins and other forms of cryptocurrency. Just today I read that the admin for our non-profit also accepts these forms of payment.

cindy capo
cindy capo

Awesome Steven, Thanks for sharing..