Bitcoin Vs Other Cryptocurrencies

Unlike Bitcoin, other cryptocurrencies do not share Bitcoin’s established brand name and instead compete with Bitcoin for the top spot in the crypto market. Bitcoin is currently (as of 2/18/16) at $430 per Bitcoin; however; there are over 800 different types of coins out on the market today.  There are many other types of currencies that have been introduced to the market because Bitcoin has become so popular, which brings up an interesting question: Why should anyone invest in another cryptocurrency when people could just invest in Bitcoin?

Brief Introduction to Cryptocurrencies

Many factors go into determining whether or not someone should invest in a cryptocurrency besides Bitcoin. While Bitcoin may be the biggest name on the market, there are many factors that contribute to Bitcoin’s success and why other cryptocurrencies may be just as viable of an investment.The bitcoin revolution is one of the most reliable and authentic guidelines that can provide you with all the necessary information about safe trading in bitcoin. In this article, we will see how you can change your lifestyle with bitcoin trading.

Cryptocurrencies use cryptography techniques to ensure secure transactions and to regulate the generation of new coins so no one person or group could become dominant within the market. Bitcoin is an open-sourced protocol which means any software developer can look at Bitcoin’s code and modify it if they see fit for their own purposes. Other cryptocurrencies work similarly by adjusting Bitcoin’s original code and making modifications to Bitcoin’s core infrastructure. This allows for other currencies like Bitcoin and Peercoin to utilise Bitcoin’s established infrastructure while still creating a cryptocurrency that works uniquely for their specific purpose.

There are three main types of cryptocurrencies:

-Currency- this type of cryptocurrency is exactly what Bitcoin was intended to be. It would use cryptography techniques to ensure secure transactions and to regulate the generation of new coins. This type of currency is set up so that one can mine or gain new coins by generating their own blocks through solving complicated cryptographic problems with the computers in their possession, which creates more coins for them in turn. Bitcoin’s code has essentially remained unchanged since its creation because it only needs small updates every once in a while, which makes Bitcoin fairly stable within the market even though some investors may disagree with Bitcoin’s changing value.

-Utility token- 

Unlike Bitcoin, utility tokens are only accessible when you purchase them from someone else. These types of cryptocurrencies are used when companies want to raise money for their projects since most investors are not interested in purchasing Bitcoin to fund a company’s idea. When a company is considering an initial coin offering, it will most likely use Ethereum’s infrastructure so that potential investors can purchase the coins with traditional currency.

-Asset token or Collectible token- 

These types of cryptocurrencies have been set up so that each individual token has its own unique value and purpose within the market.

In order to understand why Bitcoin was created in the first place, you must look at Bitcoin’s history and what Satoshi Nakamoto intended Bitcoin to be when he invented it back in 2008. Bitcoin was intended as a decentralised payment system where users could transact directly with one another instead of having to rely on banks or other institutions in order to transfer money. Bitcoin was also intended to be a cheaper alternative, especially when compared to the fees that are associated with transferring money through traditional institutions. Bitcoin’s high transparency is another factor that makes Bitcoin stand out from other currencies since Bitcoin transactions are completely transparent, which means anyone can look up Bitcoin’s history and see exactly where it has been used before.

The Bitcoin Bubble

There have been numerous articles written about the Bitcoin bubble popping, but does this mean Bitcoin is dead? The answer is no because Bitcoin will most likely go through many price fluctuations over time. Any currency traded on the market will fluctuate in value so there is no reason why Bitcoin should be any different even though Bitcoin has had a rough few months. The Bitcoin bubble popping cannot be seen as negative by any means because Bitcoin’s value is still around $4000 despite the past crashes, which means Bitcoin is already recovering to its normal price point.

The reason people are nervous about Bitcoin’s future is because of how quickly Bitcoin fluctuates in value; hearing stories about Bitcoin losing half its value overnight can be terrifying for anyone who holds large amounts of this cryptocurrency. However, it should also be noted that no one knows for sure whether or not Bitcoin will continue to grow at all since history has proven time and time again that anything can happen when you’re dealing with digital currencies like Bitcoin.

PKI-Security Engineer & security blogger at gbhackers.com. She is passionate about covering cybersecurity and Technology.

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