Bitcoin vs altcoins: what we should expect
With so many promising projects out there, you must be thinking: “should I invest in Bitcoin or in some altcoins?”. This can be a tough question to answer, to put it lightly.
The crypto market is still dominated by Bitcoin — by a long shot. But there are alternatives to it and some of them are proposing even faster and cheaper transactions. Also, there are a lot of altcoins that can be a real promise for the next decade.
A deep discussion about that matter is required to understand how this battle is being conducted by its users.
Bitcoin has raised 11% in value in the past 24 hours, but some altcoins showed a stronger uptrend. What does that mean, exactly?
According to CoinMarketCap, Bitcoin has 42% dominance over the market. That means that BTC alone possesses almost half of the overall volume, which usually leads to less volatility compared to altcoins.
In short, it’s easier for altcoins to show best (or worst) percentages since they don’t have that much adoption.
However, other interesting points need to be enlightened.
More than just cryptocurrencies
Altcoins can be much more than money: Ethereum (ETH), for instance, is primarily a smart contract environment where developers can build automated, complex, and trustless solutions.
There are projects such as Decentraland (MANA) and The Sandbox (SAND), which are focused on creating metaverses: they build a cryptocurrency and a whole new digital world at the same time. Alas, Bitcoin is only able to be used as money — nothing more.
Since Bitcoin is somewhat “stuck in the past” compared to newly assets, some altcoins are facing growth in the last years.
Binance Coin (BNB), in a sense, works like Ethereum, but with far fewer fees; Cardano (ADA) shows promise to the blockchain ecosystem; Polkadot (DOT) is calling much attention because of its “cross-chain” feature.
And these are just a few examples — there are LOTS of cool projects out there that show promise in the long-term.
Bitcoin is the mother of all cryptocurrencies: it’s demonstrably safe and reliable by enduring the test of time. On the other hand, some altcoins could deliver much more than just a digital asset for their users and developers.
Investing in Bitcoin is far less risky than putting your money into other projects; however, some of them could prove to be as disruptive and lucrative in the long-term as the main crypto.
It’s up to you to decide whether you wish to invest in Bitcoin or newly projects. Usually, the best call is to diversify your portfolio, since it could increase your financial security and improve your changes of getting more cash — a lot.