How Can You Differentiate Bitcoin From Other Cryptocurrencies?
You will see that most of the assets that have come after the Bitcoin have claimed to have many features on the lines of their predecessor. Altcoin developers have argued that the Bitcoin is slow; to them, it is antique currency without features like smart contracts, anonymity, and cheap transactions. However, according to Bitcoin advocates and Blockstream mathematician Andrew Poelstra, there are solid reasons why the Bitcoin lacks certain features. Poelstra has stated that the Bitcoin community has a strong focus on stability and soundness. This often is prioritized over privacy. Poelstra further argues that the world will not really get an opportunity to promote decentralized currencies if a time comes when the Bitcoin collapses.
Why is Bitcoin different from others?
People are investing in altcoins to hedge against the Bitcoin. They feel that these cryptos will have more utility than Bitcoins, they may serve a specific niche, and that one day the Bitcoin may die. Are these assumptions correct? To start with, there are many ways in which the Bitcoin could disappear. There may be a technical bug, an economic flaw, or a consensus flaw. The technical flaw may be some kind of a loophole in its cryptography which can be exploited. The thing is if that vulnerability can be detected on time, one can be sure Bitcoin will resolve it and fork quickly to lessen exposure to such vulnerability. In case the mistake is caught later, the prices may decline. But the price fall will not be limited to the Bitcoin alone; all other altcoins and cryptos will also be shaken. An economic flaw, on the contrary, would lead to changes in economic rules for the Bitcoin; but for this, a strong consensus is needed.
Secondly, most altcoins seem to have difference with the Bitcoin and this is exactly why people want to invest in these. It is believed that other new cryptos will have the same utility as the Bitcoin and offer something extra. In case an altcoin turns out to have more utility than the Bitcoin, Bitcoin can also add that feature itself, provided it is useful. For instance, confidential transactions are being proposed for the Bitcoins. So, altcoins will not only have to compete against the Bitcoin but also against entrepreneurs who are keen to build on the Bitcoin. It is very unlikely that altcoins will offer advantages that Bitcoin already does not. Moreover, a bitcoin robot can help even the novices trade without any tension as the bot is capable of making the buying and selling decisions. These bots are driven by an algorithm that calibrates the market conditions accurately and fetches you winning trades. So, bitcoin is the most sought cryptocurrency.
Other cryptos can have specific niche for their usage. For example, Dogecoin was created for transferring value while Ripple was launched to help banks transfer value better. The only way a nice coin can make its presence felt is when it can offer something which Bitcoin cannot.
The main benefits of the Bitcoin are security and network effect. Bitcoin has been around for the past decade as a store of value. Moreover, its security has proved to be much superior compared to any of its younger counterparts. It is more accessible having more crypto exchanges and merchants supporting it. This makes Bitcoin far more liquid, with much higher trade volumes that any altcoin. Traders can use automated trading software like Crypto Superstar to make day-to-day trading easier. Various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, may be traded quickly and easily. The crypto superstar krypto-roboter makes the investment a little more interesting and user-friendly. Bitcoin also has the biggest developer ecosystem, supported by software and more implementations compared to any altcoin. While an altcoin can eventually take over Bitcoin, it has to show much utility first to grow itself enough to compete against the Bitcoin network.