Since the first cryptocurrency was introduced in the world, there’s been so much water under the bridge and not only one bitcoin alternative appeared after this significant event. Does it mean that bitcoin has its real competitors? Maybe is it all considered that none of them can exceed all bounds? On this issue there are many disputes, and our task is to identify among the thousands of titles the most promising cryptocurrency, which could be called a worthy alternative to BTC.
Table of content:
- All about altcoins: concept and features
- Ways of the creation of alternative cryptocurrency
- What is the most promising altcoin for today?
- Conclusion: deeds, not words
Alternative coins are all cryptocurrencies, which appeared after the “digital gold". It is not necessary for them to be the BTC direct followers. The variety of protocols, different levels of anonymity, additional functional distinguish them from each other. There are completely decentralized cryptocurrencies, but there are also those that are subject to the laws of an individual development team and even of ethnic groups, for example, Bitcoen, created in Israel. The governments of some countries are following very strict policy as for the cryptocurrencies and blockchain projects down to the long-term imprisonment for the use of these financial instruments, and in some countries bitcoin and its alternatives are not only welcomed, but ICO licenses are also issued.
As already noted, bitcoin is the world's first cryptocurrency. Its appearance in 2009 wasn’t a sensation, since most experts in the financial sphere did not take the innovation seriously. Independence from the state, decentralization, anonymity - is this possible? However, some enthusiasts adopted the idea and began to invent other cryptocoins with similar characteristics. This is how Namecoin appeared in 2011. After it, one after another the implementation of projects in the field of digital cash began. That's when the term ”bitcoin alternative” appeared. This phrase is too long; therefore it is more common in the crypto community to use the word "altcoin".
By 2018, the number of cryptocurrencies exceeded 1000 names. Most of the projects are experimental or those that did not meet the expectations of their creators. The latter, for the most part, aims to make a profit, but for the promotion of altcoins it is necessary to make a lot of efforts and spend money, in addition to the fact, that the project itself must be worthwhile and meet the needs of the modern market. There is also a dominance of tokens, which are similar to securities in ICO projects. Many of the tokens promise to become a full-fledged cryptocurrency in the future.
It is not technically difficult to create your own cryptocurrency. Possessing even small programming skills, you will cope with this task. To do it, you need to download the open code of any cryptocurrency from GitHub and using simple commands in Linux to fit the code to your standards, i.e. give a new name, the block formation time and the reward for it. But will your project have a future without advertising, promotion and information pump? Probably, it won’t, unless you offer something revolutionary and unusual and your bitcoin alternative will not stir up the financial world.
Many alternative cryptocurrencies are the forks of bitcoin. The fork is a direct follower of the original coin. So, Bitcoin Cash and Bitcoin Gold are BTC forks, which have already joined the team of independent cryptocurrency and demonstrate excellent results. Moreover, transactions with Bitcoin Cash are carried out much more quickly, which threatens even Bitcoin itself: on some exchanges BTH gives an advantage. The Ripple cryptocurrency has fundamental differences both in the architecture of its blockchain and in its working scheme. It is more a payment system than a simple coin. Also Monero does not look much like BTC and isn’t its fork.
In this chapter of the article we finally come to the main subject. Which bitcoin alternative is the most promising? There are heated debates on this issue. Someone sees the future in Stellar and Ripple. Others are sure that the funny Dogecoin will soon become a serious and powerful cryptocurrency. Monero with its advanced anonymity promises a lot of both in the immediate and remote perspective. Anyway, it's all about money, namely, concerning the level of capitalization. All in all, fiat money for a long time will be the best confirmation of the value of anything, including cryptocurrencies. How many USD are given for one virtual coin is a very important fact.
In this sense, Ethereum has no equal. Of course, its capitalization is not as big as that of bitcoin, but the stability, reliability and trust of users of ETH are much higher than those of other altcoins. There are also users who generally regard this platform as something completely different from BTC. Such experts have arguments that you can not argue with:
- Ethereum is not only a full-fledged cryptocurrency, but also a financial tool, as well as a programming language
- On ETH base you can create your own internal currency for tokens and with their help implement ICO projects
- Ethereum network is designed for middle-class equipment, so until now its mining could be performed on a regular PC
- The algorithm, which uses ETH, allows you to conclude smart contracts - commercial obligations without the participation of third parties
In conclusion, I would like to note that any bitcoin alternative has a value, as long as it is confirmed by fiat money, USD to a greater extent. Investors would not delay investing in one or another coin, which in the future will bring much income. For their part, developers must constantly work on the functionality of their product, including improving the security of transactions and the safety of funds. Simply put, users of cryptocurrency should see the result of using the financial instrument. Only advertising and “information bomb” don’t work. In this case, you can only talk about the bubble, which critics like to mention.