It’s been quite some time since the concept of cryptocurrency captured the imagination of people all over the world. The ingenuity, innovation and privacy surrounding the concept of cryptocurrency inspired millions across the world to jump into the realm of cryptocurrencies, particularly the Bitcoin, the first modern cryptocurrency introduced back in 2009. For a huge majority of people, Bitcoin has become synonymous to cryptocurrency or digital currency, and for all the right reasons, ranging from challenging the conventions and controversies involving traditional fiat currency system to introduction of blockchain concept, the underlying principle of cryptocurrency.
Currently at around $1255 USD for 1BTC, Bitcoin growth is no less than phenomenal, and that too, within a decade of its existence. Since Bitcoin is designed to be an open source technology, it was all but likely for other such digital currencies to appear overtime. So, hundreds of new cryptocurrencies have been introduced ever since, which are represented collectively with the term ‘Altcoin’. However, only a handful of them have been able to make some kind of mark in the industry.
Where some people consider these altcoins a threat to Bitcoin, others see them as the next step in evolution of digital currencies. So, let’s have a look at top 3 reasons that make Altcion beneficial rather than threatening for Bitcoin.
- The legacy continues
Not all people are happy about cryptocurrency, especially the governments, because it challenges their control and authority over masses’ financial state of affairs that they have been maintaining using conventional fiat money system. So, they are always looking for ways to rebuke Bitcoin (as well as altcoin), but with so many cryptocurrency options in existence, it becomes almost impossible for them to totally wipe out digital currency.
- Diversified investment opportunities in crypto portfolio
Not putting all eggs in one basket becomes even more pertinent when it comes to investing in cryptocurrency. While Bitcoin still rules the crypto world with its current market cap going over $18 billion, everyone trying to invest in it will only add to the competition, affecting the returns, as around 72% of all bitcoins ever to be produced are already in circulation. As cryptocurrency traders resort to Bitcoin alternative for investment, the probability of Bitcoin lasting longer in the market increases rather than decreasing.
- Competition is good
Though diehard Bitcoin followers might feel it is fine the way it is right now, but this might not essentially be true. Financial assets, including Bitcoin, need competition to bring out their best potential. While there’s no shortage of development work in Bitcoin, Altcoin developers often come up with new features, which serve Bitcoin well enough when introduced in its source code later. So, all this competition is actually benefiting Bitcoin instead of harming it.
Cryptocurrency, as a viable alternative to fiat currency system, is already a force to reckon with, but more people involved in it also helps in evolution of blockchain concept, introducing many new frontiers where it can grow to offer countless innovative solutions to problems we face right now.