Altcoins are the cryptocurrencies other than Bitcoin. It is launched after the success of Bitcoin and is the first decentralized and open-source cryptocurrency. After the release of the Bitcoin around 6,000 Altcoins have been launched.
Bitcoins vs Altcoins
Unlike Bitcoin’s, some Altcoins have different monetary policy rules that encourage the different uses of the currency. Do you know what’s Bitcoin and Altcoin? Let’s know them deeply and have a clear knowledge them at the end of this article. Which will make you more money in 2020? Bitcoin or Altcoin? Let’s see.
What is Bitcoin?
Bitcoin is often referred to as virtual currency or an online version of cash. Each Bitcoin is a computer file that is stored in a digital wallet. Every single transaction of Bitcoin is enabled and recorded by a transparent technology known as Blockchain. The Blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record financial transactions. This technology makes it possible to trace the history of Bitcoin transactions. The value of Bitcoin has gone up and down over the years since it was created in 2009.
What are Altcoins and how do they differ from Bitcoins?
Aside from the Bitcoin, there are hundreds of other cryptocurrencies. They are known as Altcoins. Altcoins differ from Bitcoin in a range of ways. They employ different proof-of-work mining algorithms and cryptocurrency distribution method. Yet some of them offer more privacy compared to Bitcoin. But most of the Altcoins offer no benefits over Bitcoins and they have less hash power securing them. That is, Altcoins are a little bit riskier than Bitcoins and their exchange rates are more volatile.
Which will make you more money in 2020?
Now let’s look at which investment strategy hits up in 2020, Bitcoin or Altcoin.
Bitcoin is the first and the most decentralized project that emerged in 2009. It has the largest network of individuals who can act as validators to perform transactions. And the process is certified by the mathematical verifications and is done to secure the network. Bitcoin has the most liquidity and is the most secure network that is very much important for traders. But Altcoins are more volatile and risky cryptocurrency. They are not as secure as the Bitcoin and have the chance of getting attacked when the hash rate is too low.
During the bull market of 2017, many investors and traders become a millionaire due to small Altcoins. This made the investors predict the fall of Bitcoins and up of Altcoins and invests more and more in Altcoins. But most of the Altcoins lost their value during the bear market.
The bear market left the industry by giving investors with worthless Altcoin tokens. Not only Altcoins, but Bitcoins has also lost its value. It experiences frequent fluctuations from its all-time low value of $0.06 to a high value of $19,891. This is because of the limited supply of coins. The main advantage of the Bitcoin over the Altcoins is that it doesn’t leave worthless tokens like Altcoins when a market down happens. The safe and secure transaction offered by the Bitcoin makes it’s market up like a phoenix.
Thus we can conclude that Bitcoin is far better than Altcoin to invest in 2020. It helps you to make more money even though it experiences ups and downs frequently. The main reason for this is the safety and security it offers for the transactions. You can become a millionaire within seconds when an up comes in the Altcoin market. But it occurs vice versa too. That is investing in Altcoins is riskier than investing in Bitcoins. When coming to the end of the article, we hope that you all understood that there is only one king in the crypto world forever, that is the Bitcoin.