Bitcoin and Altcoins share a few similarities but differences rank the chart. Bitcoin is the original Cryptocurrency meaning it was the first ever coin in the market. Altcoins were then built after the success of Bitcoins, making them stand behind the Bitcoins. Both the kinds are decentralized, eliminating the need for a third party to process the transactions. Bitcoin has comparatively higher volatility than Altcoins since it is dependent on feelings and projections. Both coins can be accepted as a source of payment, though not every merchant accepts Cryptocurrencies as a mode of payment.
Pooja T.
I am a fun loving person who is also keen to working consistently toward my goals.
Cryptocurrency has become a hot topic in the market. You can’t help but overhear people everywhere you go talk about Cryptocurrency and how good an investment option it is. But just by listening to others, you cannot decide which Cryptocurrency is good and which is bad.
Though a large number of the audience knows only Bitcoin as a Cryptocurrency which is very usual because it was the first ever Crypto launched. But there is an entire world of Cryptocurrencies other than Bitcoin. Though there are thousands of other coins in the market, Bitcoin is the one with the highest utility. All the other coins other than Bitcoins are referred to as Altcoins.
There is not much to understand between the two as they fall under the same name. But, there are a few points that make them the same and different at the same time based on their value, utility, and status. To make you clear about their nature or relationship with each other, this article is a brief explanation of the variance and cordiality of Bitcoin and Altcoin. Come, let’s move ahead!
Similarities
It is obvious that both Bitcoin and Altcoins share a few similarities since they both are a part of the buzzword Cryptocurrency. They both may not be one, but they share a few traits that make them part of the same family. Let’s go through a few points that denote the significance between the two types.
One of the most common factors between Bitcoin and Altcoins is volatility. Since Cryptocurrencies are not controlled by any single body, there are multiple factors that affect their price and value. It is very usual to see prices fall, whether it is Bitcoin or Altcoins. The time in between the fluctuation in prices may differ, but the variation is obligatory.
Just like we keep money in our wallet while going shopping, in the same way, to buy Cryptocurrency, you need a digital wallet. It’s not a fancy term for a special kind of wallet, but a compulsory must-have while buying or selling Crypto. This is yet another common factor between Bitcoin and Altcoin, meaning both kinds are decentralized, eliminating the need for a third party to process the transactions.
Both Bitcoin and Altcoins can be accepted as a source of payment. Though not every merchant accepts Cryptocurrencies as a mode of payment, there are numerous businesses that do. The only thing that needs to be ensured is that neither the seller nor the buyer is taking undue advantage of this.
Many merchants have started accepting Crypto as a source of exchange because that is what people are looking for. This has, in some manner, played a significant role in changing the prices of different coins.
Differences
As much as there are similarities, differences rank the chart. Bitcoin and Altcoin both fall under Cryptocurrencies but have significant changes. When compared on the basis of similarities, a few points could be observed. Let us now have a look at the differences they possess.
Bitcoin is the original Cryptocurrency meaning it was the first-ever coin in the market. Altcoins were then built after the success of Bitcoins, making them stand behind Bitcoins. Ethereum, the second largest Crypto, came up with the concept of smart contracts that made it possible for other coins to function smoothly. Some even use the term umbrella to describe Altcoins.
Bitcoins have comparatively higher volatility than Altcoins. But why is it so? This is a question many people may come up with. Since Bitcoin is the oldest and original Cryptocurrency, it is more volatile in nature as it is dependent on feelings and projections.
Nathan Reiff says:
“Bitcoin’s price fluctuates because it is influenced by supply and demand, investor and user sentiments, government regulations, and media hype.”
Another point of differentiation is the popularity of both types. Bitcoin is a popular Cryptocurrency because of many reasons. Altcoins, on the other hand, have increased in numbers, but their popularity is still quite less than that of Bitcoin. The main reason behind this can be Bitcoin being the primary Cryptocurrency.
Bitcoin can be used as a currency while trading for other Altcoins. In simple words, you can buy other Altcoins with the help of Bitcoin. But this is not the same with Altcoins. They don’t have the power to buy other coins and are used for trading as well. People often refer to this dissimilarity as the difference in trade.
Just like fashion and style change with each collection of clothes, in the same way, a few rules of areas of focus change with each new coin. If talk Bitcoin, it allows us to view the transactions in the ledger. Even though they are meaningless numbers, you can view them, though not in a particular sequence. It is not the same with newly launched coins, as they follow transparency in their dealings.
Conclusion
I hope this article has made clear that there exists Cryptocurrencies other than Bitcoin and also helped you understand the relationship between Bitcoin and all other coins. Though both kinds are similar and different in different ways, both are recommended investment options. There are a lot of people who are gaining knowledge in this subject and learning to trade in Crypto. This may be an old topic in the market, but its buzz has still not declined. In fact, it has all the more increased.
For your better understanding, I have explained in a jiffy the similarities and differences between the both. While I’m still searching for more similarities to fill in, you can wait for the next article. 😉
How are both kinds the same?
Bitcoin and Altcoins are volatile in nature.
A digital wallet is required to buy or sell both kinds of Cryptocurrency.
Both can be accepted as a source of payment.
Wait, searching.
Still searching….
While we are still searching for points that support the similarities, here is a short description stating the differences:
- Altcoins were curated after the success of Bitcoin.
- Bitcoin is more volatile than Altcoins.
- Bitcoins steal the limelight when in a show with Altcoins.
- Bitcoin lets you trade other coins whereas Altcoins do not have the same power.
- Bitcoins are more transparent than Altcoins.
Connect with me here!
Happy Reading 🙂
Related Stories
L O A D I N G
. . . comments & more!