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What is Altcoins? Why Altcoins are Needed?

altcoin

In cryptocurrency trading, you heard the name Altcoins, so what is it? and how they differ from Bitcoin? if you have these question in your mind then you gonna find it here.

So Firstly What Is Altcoins?

Simply Altcoins are those cryptocurrencies launched after the Bitcoin, and also these are alternative cryptocurrencies to Bitcoin, these cryptocurrencies are launched after the success of Bitcoin. Generally, they project themselves as better substitutes to Bitcoin. The success of Bitcoin as the first peer-to-peer cryptocurrency is lead the way to others to create the even better the Bitcoin.

The word “Altcoin” refers to “Alternative Coin”. Thus they simply a category of cryptocurrency that is alternative to the digital currency Bitcoin.

Begining Of Altcoins

In 2009 the cryptocurrency era begins with Bitcoin, and initially, no one knows what is Bitcoin or Cryptocurrency, and after one year later Bitcoin becomes one of the popular cryptocurrency in dark web markets, and also WikiLeaks one of the popular news website which publishes the classified information of the countries, announce that they are accepting Bitcoin as a payment, after Bitcoin become more popular to the outside world.

Until 2011 Bitcoin is the only one cryptocurrency available but after 2011 April the first Altcoin came into existence named as Namecoin (NMC).

Namecoin is a cryptocurrency that is mined with Bitcoin software are as bonus It is based on the code of bitcoin and uses the same proof-of-work algorithm. Like Bitcoin.

After Namecoin the era of Altcoins begins, after Namecoin, these some of the cryptocurrencies came into existence Litecoin, Ripple, Ethereum, Monero, and the list goes on…

Why Altcoins Needed?

For this question well the answer is, Bitcoin is not a perfect cryptocurrency, usually, all coins will try to create a better or different version of Bitcoin, for example, Litecoin is an Altcoin that confirms transactions faster than Bitcoin, and Monero is Altcoin that focuses on the anonymity aspect,  making transactions virtually impossible to trace, each altcoin has its own unique the thing it does best.  all coins can also vary from Bitcoin in the way they are mined, for example, bitcoins mining algorithm is called an SHA-256, while Litecoin mining algorithm is called script, different mining algorithms require different types of hardware to mine. in order to give the best performance than Bitcoin Altcoins are created.

Until  today thousand of Altcoins are created but some of the altcoins are able to gain popularity as Bitcoin, one of the reasons behind this is a coin Market capital and also the unique concept behind coin ICO, in an initial stage of Altcoins Bitcoin is consumed 90% of the cryptocurrency market but now Altcoins have the most amount of market capitalization as compared to Bitcoin, But Bitcoin is still dominating crypto market.

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