• Features
  • Updated: March 20, 2023

Altcoins Or Bitcoin: Helping Investors Navigate The Confusing Paths

Today's upsurge of numerous new cryptocurrency projects all too frequently makes choosing the best crypto asset a daunting experience.

While undoubtedly the leading player, Bitcoin, has been around for over ten years, other new cryptocurrencies, also known as alternative coins (or Altcoins) keep springing up.

However, Bitcoin has always been the reference point for all new crypto projects. 

Again, amongst the altcoins so far, Ethereum is considered the most successful and largest, second only to Bitcoin in terms of being the largest cryptocurrency in the world.

The total market share of Ethereum currently constitutes roughly 21% of the cryptocurrency market.

On the other hand, Bitcoin and all its variants account for up to 41% of the crypto market.

The trending of the prices of bitcoin and altcoins has always revealed similarities even though they both differ.

For instance, the high volatility of prices is a common feature in both cases.

Statistics are also replete with how, generally, altcoin prices tend to skyrocket whenever those of bitcoin shoot up.

In the same vein, altcoins had been continuously observed to depreciate with instances of Bitcoin’s price crashes.

An X-Ray of Bitcoin's Technical Features

A decentralized architecture that renders any intermediaries useless is the hallmark of Bitcoin.

For the security of the crypto network, a robust technology, known as blockchain technology, is heavily involved.

Blockchain technology makes it possible that bitcoin to operate as a public ledger, making all transaction details as apparent as possible from the first to the most recent.

Whenever there's a need to supply additional coins into the network, Bitcoin typically relies on mining.

This mining process often lets new Bitcoins into circulation through block rewards (known in some circles as airdrop).

Ideally, the choice of mining equipment used by miners is determined by the amount of energy usage involved as some particular equipment might end up consuming enormous amounts of energy.

Bitcoin block rewards diminish by 50% approximately every four years (Bitcoin halving).

Moreover, the cumulative number of minable BTC from the Bitcoin system is 21 million.

So, capping the total minable BTC at 21 million and Bitcoin halving makes Bitcoin a rare currency.

This discourages excessive supply and eventually prevents inflation.

Bitcoin Investments

Bitcoin has been in use for at least a decade.

It has experienced numerous turbulences and recovered successfully afterwards.

What is more, experts have enough data they use to predict Bitcoin’s price behaviours accurately.

Bitcoin’s many years have also earned its people’s trust and allowed it to spread to many locations.

If you follow financial and technology news regularly, you will admit that Bitcoin has become a future world hope.

Some countries have declared it a legal tender, while others are preparing to do the same.

Notably, the number of merchants accepting BTC payments has grown exponentially recently.

All these show a more appealing future for Bitcoin.

Briefly Analyzing Altcoins' Features 

Like Bitcoin, altcoin projects run on decentralized blockchain-based platforms.

That means altcoin networks are also secure with faster peer-to-peer signal transmissions during transactions.

Significantly, most altcoins also depend on mining to create and supply additional coins.

Altcoins like Ethereum don’t have a pre-determined maximum number of minable coins.

Additionally, they don’t experience halving as Bitcoin, thus making them less effective in deflating the financial markets.

Investing in Altcoins

You must recognise the rapid emergence and growth of various altcoins.

This group of cryptocurrencies comes with a diversity second to no other asset.

First, there are hundreds of coins in which one can invest.

Additionally, you can engage in building blockchain-based applications and still earn income.

Altcoins also have higher operational efficiencies than Bitcoin.

That means users enjoy faster and more affordable transactions.

Altcoins embrace environmental conservation because their mining requires relatively less energy than Bitcoin mining.

Unfortunately, most altcoins are experimental projects.

We still need time to learn more about their investment potential.

Moreover, experts need more data to predict altcoin price trends to facilitate sound investment decisions adequately.

Finally, some altcoins may only stay for a short time.

Unlike Bitcoin, most of them don’t have promising futures.

Resourceful Roadmap For Investors

Both Bitcoin and altcoins are acceptably significant investment assets.

While investors have embraced Bitcoin for several years now, most of the altcoins have only been around for a while as potential investors try to determine their potential.

Additionally, Bitcoin has spread to more places than altcoins.

Based on Bitcoin's high value, it is easy to recommend it as a more appealing investment option.

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Eben Duru
Eben Duru

 My name is Eben and I am from Lagos, Nigeria. I am currently a writer at AllNews Nigeria. I’m...

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