Bitcoins and Altcoins


Bitcoin first came about several years ago, and most of you know what it is, already. But have you heard of the infamous Dogecoin or Litecoin? Both inspired by Bitcoin, these two alternate cryptocurrencies, nicknamed “altcoins” are rocking the market with big waves.

Bitcoin:

The one and only original, digital cryptocurrency. The basis from which everything started. Developed in 2009 by a mysterious programmer named Satoshi Nakamoto, Bitcoin is the internet version of USD. Anonymous, almost unhackable, and definitely unguessable, Bitcoin wallets are arguably the most secure way of keeping money due to one thing: decentralization. The decentralized nature of Bitcoin means that it is controlled by no one. Traditional banks like the Bank of America or DBS Singapore are centralised; if the bank wants your money, they can take it. Bitcoin is commonly known as the banks’ worst fear because of the fact that no single person controls the economy. Bitcoin transactions are not stored on one central server – they’re stored in a network of thousands of “nodes” worldwide. These nodes are really just Bitcoin enthusiasts who downloaded the blockchain – the record of past transactions – and are hosting nodes.

Bitcoin has three advantages over other cryptocurrency altcoins.

1) Bitcoin was the first cryptocurrency. It has the most history and is the most reliable of all the coins. It has been shown to rebound to price falls and has increased in value over a million times from when it was first made in 2009.

2) Bitcoin is the most widely known. You can pay for more things, earn more of it, and in general use Bitcoin more than any other altcoin. Bitcoin is now being accepted at various physical stores or even cafes, but physical stores have yet to widely accept altcoins of any kind.

3) Bitcoin is worth way more than other altcoins. If you own one Bitcoin, you have around $500-$600 worth of money. If you own one Dogecoin, you have less than 0.01 cents. Bitcoin is much more highly prized than other cryptocurrencies.

Dogecoin:

Dogecoin – made by and for doge fans. Styled after the infamous way of speaking and writing, Dogecoin’s icon is a shibe dog with idiomatic phrases such as many money and much wow. Variants conceived by the community also include want 10/10 or so crypto.

Dogecoin is one of the least valuable altcoins around. A thousand dogecoins are barely worth 20¢. However, there is one main advantage to Dogecoin. It is the fact that the dogecoin network is not has fast and the mining difficulty not has high as Bitcoin. As an analogy, I mined Bitcoin with slush’s pool for two weeks and received just 0.00006 Bitcoins. I mined Dogecoin with GHASH.io for two days and received 0.0001 Bitcoins worth of Dogecoin. If you want some quick money mining without investing in expensive equipment, then Dogecoin is a pot of gold at the end of a rainbow, for you.

Litecoin:

Inspired by Bitcoin, Litecoin was the first to use the Scrypt algorithm, setting the way for the other altcoins to follow. Bitcoin uses the commonly known SHA256 algorithm to code it’s hashes, but Litecoin uses Scrypt. Dogecoin also happens to be a Scrypt-using coin, due to the fact that Scrypt coins are very easy to create and modify.

Litecoins are quite valuable compared to other altcoins. Currenty 20 litecoins make up about one Bitcoin’s worth of money. However, this also means that they are pretty popular and mining them is difficult. That being said, Litecoin has proven itself to be a stable cryptocurrency. In fact, while Bitcoin’s value has fluctuated, Litecoin’s value has been steady for the last few months.

Darkcoin:

Darkcoin was a Litecoin-based Scrypt coin that prided itself on its anonymity. However, also due to this fact, the developers have had a big problem launching the coin. Many people liked the level of anonymity Bitcoin provided – no names, nothing like that, but having a record of transactions. In Darkcoin, this record can be erased like it was never there. This means that scammers can scam VERY easily by simply making you send money and then hiding that transaction. No matter where you go, you will not be able to prove that the scammer took your money.

This was the ultimate downfall of Darkcoin. Currently, it is decently valuable, but trade is hard thing to do because you can never trust the other side.

Blackcoin:

Instead of copying Bitcoin or Litecoin, Blackcoin copied Darkcoin. Blackcoins cannot be mined and are gained by simply having a positive balance in your wallet. Over time, this balance grows. Blackcoin has the same anonymous-promoting features as Darkcoin and its only variation is the inability to mine it.

Conclusion

Which coin is best? Many people want to know. Well, it depends on what your goals are. Do you want quick money by mining at home with only your personal computer? I recommend you mine Dogecoin or Litecoin. In fact, both cryptocurrencies are now merge-mined. This means that you can mine both at the same time or switch between whichever is more profitable to mine! Many pools currently integrate this, with the best-known pool being GHASH.io.

Are you looking for a long-term investment? Then you should go with Bitcoin. Experts predict that Bitcoin’s value will exponentially increase in the next 10-20 years, so if you hold a Bitcoin now, you might be able to buy a house in the future.

Written by: Guest Author

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