The purpose of altcoins ?

[User365]

Hey there,


can somone explain me the purpose of altcoins, please ?

From my point of view i cant understand why you should support something other than bitcoin.

According to https://www.coingecko.com bitcoin has a MktCap of ฿16,118,987. the 2.best one is ether with ฿1,031,757 (i could understand mining that, it has some value)
But already the third one LiteCoin has ฿208,064 which is only 1,2% of bitcoin.

So why would someone invest in altcoins ? Are there some big issues with bitcoin (or big advantages of any altcoin ?) or just a lot of people wanna invent their own crypotcurrencies ?

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[Pente]

I see 4 main reasons:

1) Some altcoins like Dash have built in privacy features

2) Transaction costs for Bitcoin keep going up, this is already becoming a problem with my dealings in 3rd world countries. Altcoins can have a much higher rate of transactions without fee pressure.

3) Some altcoins like Ethereum are turing complete which means you can actually run some types of programs on their blockchain. I would stay away unless you have some specific use case though.

4) Testing new ideas like Myriad's 5 different POWs.

[klarki]

Is it bad to explore something new?
Bitcoin has opened a lot of opportunities)

[Zaducis]

Is it bad to explore something new?
Bitcoin has opened a lot of opportunities)

In my opinion there are several reasons for this:
1) Now Bitcoin is worth about $ 1,000 and capability for multiple profit is much smaller with altcoins.
2) New technologies and possibility always attracted large numbers of people.
3) Problems with privacy in Bitcoin transactions.

[ttookk]

I'd say:

80% are trying to get a piece of the cryptocurrency cake; somehow create money out of nothing: Copy/paste some coins code, get people involved and try to make as much money as possible, before the whole thing goes tulips.

15% 10% are trying to be "the next bitcoin", classic digital money, believing, that faster blocktimes and more efficient PoW/PoS algorithms can beat network effect.

5% Actually have unique ideas how to utilize blockchain beyond value transfer, which makes them more of a kind of tokens than altcoins as in "alternative money".

EDIT: I forgot:

5% try to look like they have unique ideas but either have no idea on how to achieve their goals, or don't plan on developing anything, because they are scams.

[alyssa85]

Bitcoin has a lot of problems:

1. centralization of mining behind the great firewall of China
2. centralization of trading in China (which is an authoritarian state with capital controls)
3. small block size means it can't handle more than 250,000 transactions a day, whereas the VISA network manages to cope with billions
4. slow confirmation times - you sometimes wait 40 minutes or longer for your transaction to confirm
5. high fees, the fees are now bigger than banks or credit cards


Alts are an attempt to solve all these problems.One day one will, and will overtake bitcoin.

[The Sceptical Chymist]

Was there not just another topic about this?  Altcoins are for buying bitcoin.  And for gambling and trading, that's about it.  In the other thread I said you can't spend altcoins anywhere because no one accepts them.  There are very few places that take coins like doge, dash, and litecoin.  If a business accepts crypto at all, it's usually just bitcoin.  I don't see any real use for 99.99% of altcoins.

[kiklo]

BTC is a Failure and an evolutionary dead end from a Technical Standpoint.

The successors to BTC will be found in the Alt coin community, that are faster more energy efficient and higher transaction capacity.

The purpose of Alts is to battle each other to see who the next crypto champion becomes.


 

[Rockie1234]

BTC is a Failure and an evolutionary dead end from a Technical Standpoint.

The successors to BTC will be found in the Alt coin community, that are faster more energy efficient and higher transaction capacity.

The purpose of Alts is to battle each other to see who the next crypto champion becomes.


Okay, it has a technological disadvantage, but does this really matter? You tell me how long it will take for some alt coin to overtake bitcoins market cap of 10 billion.
People invest in Bitcoin because of the reputation, and probably because most ordinary people don't know about alt coins.


 

[asriloni]

With more cheaper coin and they can grab more profit with the same amount, totally the highest price of btc makes everyone are so difficult to trading it and especially about the middle until the lower trader and they're not having the sufficient amount to trade btc.

altcoin = ALTERNATIVE coin

[robelneo]

This is to strengthen and make the crypto currency more popular and with a lot of options,this technology is innovating as it progresses as you can see there are a lot of legit altcoins coming up with new innovation and features like Burst,etherium monero and some other good coins and this is not to compete with bitcoin but to support it's usage.

[kiklo]

Okay, it has a technological disadvantage, but does this really matter? You tell me how long it will take for some alt coin to overtake bitcoins market cap of 10 billion.
People invest in Bitcoin because of the reputation, and probably because most ordinary people don't know about alt coins.

Yes , it will really matter , because BTC price is too high already for the majority of the world.
Transaction Fees keep increasing. Price & speed wise LTC already beats it hands down.

If I have to use my crystal ball, another alt's market cap will be matching BTC within 3½ years after it's last big pump.
And not long after BTC will begin it decline to nothingness.

Reputation = Hype,  Hype fades as reality sets in

Most ordinary people don't know about crypto coins , BTC or otherwise.


 

[kidoseagle0312]

Hey there,


can somone explain me the purpose of altcoins, please ?

From my point of view i cant understand why you should support something other than bitcoin.

According to https://www.coingecko.com bitcoin has a MktCap of ฿16,118,987. the 2.best one is ether with ฿1,031,757 (i could understand mining that, it has some value)
But already the third one LiteCoin has ฿208,064 which is only 1,2% of bitcoin.

So why would someone invest in altcoins ? Are there some big issues with bitcoin (or big advantages of any altcoin ?) or just a lot of people wanna invent their own crypotcurrencies ?

I would like to express to anyone here in this thread about my opinion regarding about the purpose of altcoins. As we going to look at it literally, altcoins for me is created to buy bitcoin in all exchange platform, also altcoin was made to buy altcoins too aside from bitcoin. Because obviously, bitcoin has a high price value than altcoins, but altcoins can be a tools for us to buy bitcoin. Tha''s what I thought.

[Flyskyhigh]

Because people like freedom to choose different options. There is no single coin that will be all things to all people.

[Spoetnik]

Was there not just another topic about this?  Altcoins are for buying bitcoin.  And for gambling and trading, that's about it.  In the other thread I said you can't spend altcoins anywhere because no one accepts them.  There are very few places that take coins like doge, dash, and litecoin.  If a business accepts crypto at all, it's usually just bitcoin.  I don't see any real use for 99.99% of altcoins.

I was thinking the same thing too.
The noobs here really do re-post the same simple questions over & over.
And many don't read the Sticky topic "titles" either. (AKA: MOD Note on Speculation Topics)

I think the issue is whether or not Bitcoin can & will be changed later to address the issues brought up..
such as slower confirmation wait times and fee's.
I started using Doge coin occasionally to get coins from one exchange to another way back (years ago) for example.
The cost of moving *small amounts* of coins with Bitcoin is high.
I chose Doge because the crypto scene decided to give it liquidity. (support)
And yeah sometimes it back fired and i took a loss doing that LOL

I mean Bitcoin was / is Open Source code.
It got popular so... bring on the clones.
This always happens on the web.. predictable really.

99.99% of altcoins are used for trading on exchanges for profits.. traded against Bitcoin.
Because Bitcoin can be easily exchanged to FIAT (real paper money etc)

I have often said, this crypto shit is the easiest way in human history to make money.

PS:
@Flyskyhigh
People "Profiteers" like a lawless shady sketchy environment to do deals to get ROI'z.
Don't feed us all the freedom speech ..don't kid yourself this is not about ideology.

[judeafante]

Hey there,


can somone explain me the purpose of altcoins, please ?

From my point of view i cant understand why you should support something other than bitcoin.

According to https://www.coingecko.com bitcoin has a MktCap of ฿16,118,987. the 2.best one is ether with ฿1,031,757 (i could understand mining that, it has some value)
But already the third one LiteCoin has ฿208,064 which is only 1,2% of bitcoin.

So why would someone invest in altcoins ? Are there some big issues with bitcoin (or big advantages of any altcoin ?) or just a lot of people wanna invent their own crypotcurrencies ?

My answer is all of the above,people dreams to become another satoshi even though their coin is just another bitcoin clone,I'd like to add that there are huge money to be made from creating a new coin and adopting it and people knows this fact.

[michkima]

In my thought, it is primarily because there are a lot of people who wants to become a crypto millionaire like those who became instantly rich because of bitcoins. Another one is some people just create shit coins with the intent of only scamming people for their money, this now has become the new ponzi scheme we all know. Everybody should be careful with alt coins as they are a very dangerous thing.

[Btc_1856]

Actually there is no use of altcoin because no body will accepts altcoin in any country, the only use i found in altcoin is the person who cannot able to invest more into bitcoin can invest in altcoin and there is possibility that he can make more bitcoin by selling altcoin at higher price.

[MicroGuy]

can someone explain me the purpose of altcoins, please ?

This is like someone asking, "please explain the purpose of automobiles?" Consumers need choices, and competition brings about better products. Just imagine if every car traveling down your street was a Ford Escort.

The bitcoin protocol is just like the invention of the combustion engine. Bitcoin is the Ford, and altcoins are the various makes and models powered by this protocol.

Make no mistake. Fiat currencies have been obsoleted. All existing capital will be transferred into cryptocurrencies sooner or later. The banks of the future will manage the private keys of their customers.

[Spoetnik]

I'd say the car analogy is a little weak.
All cars sold in dealerships actually drive LOL
And if it don't you bring it back for a fucking refund  

The point of a currency is to be USED as a currency.
Saying FIAT can be substituted for an Altcoin is silly bullshit and we all know it.. you can't !

All you guys here defending them are left with one simple played old cliche'd retort.. ONE DAY !

..and clearly they will not all be used in a major way (which is the very definition of the word currency)

It's simple, if it is not used by a majority then it is NOT a currency.

Summary:
Many of us admit 99% of these are all bullshit.
And also 99% who insist their coin they are backing / shilling for is the legit one.

To me that is like seeing 5,000+ Religions listed on Wikipedia few years back..
And noticing they are all claiming to be the one true one with the one real god.

Optimism is rampant in Crypto that much i know.
But i wonder at what point do these die-hards give up ?
When do you pack it in and realize.. hey, know what ? My coin has failed.
When ? 1 year ? 2 ? 10 years ? When ?

..one day  

PS:
I bought in 2012 $423,000 worth of Tenebrix.
I put the wallet.dat on a USB drive and put it in a bank safe deposit box
..that is what i am leaving for my grandkids when i die.
In 2032 they should be worth 33 million dollars right ?