When we talk about the crypto market, Bitcoin is the real king of the market, and the credit goes to the founder and community of bitcoin that appreciated it. Over a decade ago, the first and original cryptocurrency was developed, and today also it remains the most valuable cryptocurrency in the market. Bitcoin’s value is unexpected, and it goes up and down according to the interest of people and its talk in the town. The value of bitcoin surpassed $55,000 in March-2021 which was extremely shocking and unexpected. Bitcoin has attained so much prominence and attention because of its underlying technology. Blockchain is the technology on which bitcoin is based, and people trust blockchain and its working principles.
But bitcoin is not alone in the market, and many new crypto coins have been developed in the market that is dubbed “altcoins.” All altcoins use a similar decentralized concept as bitcoin, but each cryptocurrency has its own features and functionality. After Bitcoin, Ethereum is the second popular cryptocurrency that was developed with the idea of “decentralized applications” and “smart contracts.” With the idea of smart contracts, the code automatically executes the agreements that are made between two parties using specialized blockchain technology. The features of daps and smart contracts opened gates for developers to develop more uses and applications for digital currencies.
Prominently altcoins have been developed to overcome the negative factors and improve the processing speed of transactions, overall functionality, and scaling to meet the mounting demand with supply and services. Today, the market for altcoins is also expanding at a rapid pace, and some crypto analysts even expect that the lead of bitcoin will end in some time and if new cryptocurrencies continue to generate and overcome the flaws of bitcoin. But Bitcoins make the best cryptocurrency to trade and you can enhance your experience of bitcoin trading by visiting an app like this trading bot.
What is the main motive behind developing Bitcoin and Altcoins?
Satoshi Nakamoto developed Bitcoin to develop a decentralized digital currency and an alternative to fiat currencies that will eventually replace fiat currencies. Bitcoin allowed peer-to-peer transactions following the consensus mechanism to provide power to the bitcoin network to verify and validate transactions that are further added to the chain. A chain is comprised of a long string of bitcoin transactions stored in batches known as blocks. The verifying process or mining of bitcoins is expensive and resource-intensive.
Altcoins are produced using different innovative mechanisms that reduce both complexity and cost of bitcoin mining and increase the processing speed of transactions. Additionally, some altcoins use technologies that are built directly on the blockchain, known as smart contracts. Altcoins like Dash and Ripple offer the main advantages of speedy transactions and translatability. Both of these altcoins are specialized to provide fast transactions and focuses more on high security. In reality, bitcoin has flaws, and it can’t compete with new cryptocurrencies that are more focused.
Is it possible for bitcoin to learn new tricks or improve itself?
There were many rumors that bitcoin is failing, but instead of failing or fading, bitcoin is evolved to compete with the altcoins market by increasing its usability. The truth is that bitcoin has a huge user base that comes with the substantial interest of investors and developers and mainstream acceptance. Additionally, bitcoin is making its position strong in the market by adding new functions and tools with the passage of time.
Many projects in today’s time are focusing on building more crypto coins on the existing infrastructure of bitcoin by adding innovative features and eliminating all the flaws that will make this digital currency more usable. Even some tools allow bitcoin users to take their transactions off-blockchain and reduce the burden on bitcoin’s blockchain by allowing the processing of transactions to speed up at which marginal transactions can be verified. These things are helping the bitcoin network to become more competitive against new coins to be in the spotlight. Also, improving the flaws and issues with expanding the mainstream popularity and usability of bitcoin.
Although bitcoin has enough potential to do everything that new and younger coins can do, but bitcoins are used more as a store of wealth. Instead, it should be used to accomplish peer-to-peer transactions for which it was developed.