What are the altcoins? Other cryptocurrencies are named as altcoins for differentiation from bitcoin, or you can say alternative coins. Being the first inventory approach of the bitcoin blockchain technology has become a promotional face for the cryptocurrency industry. People are looking for more bitcoin than cryptocurrencies or altcoins. Google’s trends have all the data on it. People may not have understood the basics of blockchain or cryptocurrencies, but they still have heard of bitcoin.
Google’s search trends report from around the world:
Some conflicts still exist in the crypto market regarding the relationship between altcoins and bitcoins. Whatever it is, people have a bitcoin idea, but they don’t know the term Altcoin. Cryptocurrencies two altcoins subdivisions and bitcoin itself are a vast industry where bitcoin has dominated the altcoins since the beginning.
This is a story for beginners who are only aware of bitcoin and some related terms and want to trade with bitcoin. However, it is often seen that altcoins are popular with experienced traders. Apart from that, if new traders are guided in the right way, they also choose to buy altcoins. So, if you know and understand cryptocurrency, you could think of altcoins as well.
Investing in cryptocurrencies has become a smart investment option for traders. Since this technology has come to the world with golden ideas, the cryptocurrency launch is expanding this industry rapidly every day. So, what are you going to do right now? Is it confused between bitcoin and altcoins? Why are most investors leaning toward altcoins rather than bitcoin? Questions are truly disconcerting for a lot of people. That’s why they’ve been asking for several times. Have you ever had the correct answer? This blog will guide you through every corner of bitcoin and altcoin market adoption in a simple way. Let’s start the discussion on the first question.
Bitcoin dominance is more than 65% of people still driving toward altcoins–why?
Do you know the current market dominance of bitcoin? At the time of writing BTC is now ruling over 66.3% of the total market. There are more than 4800 cryptocurrencies present at the time of writing, which was almost three thousand months earlier. The maximum market in the crypto world still holds one single currency. Even though the bitcoin market is far larger than altcoins, some popular altcoins like Ethereum, XRP, bitcoin cash, etc. are performing digital assets rather than bitcoin.
Bitcoin may have popularity, but the price data of Bitcoin is far more unstable than the altcoins. Stability investment concerns make people think twice before investing in bitcoin. Experienced traders and investors prefer to trade with altcoins. The price is relatively low and the price stimulus is less effective than bitcoin. From a simple, even bitcoin price, it could be massively affected and people could face trading risk associates.
Now see how BTC dominance is declining compared to altcoins:
It is often observed that whenever BTC market possession went down, we could see the rise of the altcoins. The market soon shifts from BTC to altcoins, increasing the dominance of altcoins. So, it’s not the matter that dominates where and how. Things we need to focus on where we can make a profit from BTC or altcoins. Multiple top volume cryptocurrencies are more powerful than bitcoin. It’s not correlated with the fact that bitcoin dominates more of the market. Altcoins remains more promising than bitcoin in terms of price stability.
Bitcoin’s price is higher than the Altcoins allure to investors–why?
Bitcoin holds the highest value among the cryptocurrencies. The price was $7865 at the time of writing. It may be that bitcoin holds the maximum value yet the fluctuation causes a lot of bitcoin issues. Experienced traders always try to find a way out of any price fluctuation problems.
If you analyze the other cryptocurrencies price charts, you can find a flowing rhythm inside the pattern. Other shows more price stability and accuracy. Comparing with the other cryptocurrencies price chart enables the investor to have a translucent view. Meanwhile, I will show you a simple comparison between Bitcoin and Ethereum (one of the popular coins in altcoins).
Here’s the price of Bitcoin dropped from $8193.04 to $7961 and continues its downward flow. At the time of writing, it lost 232 dollars in one day. When the price is high, the amount of the loss will also be high. People don’t want to afford that huge loss for a day. While bitcoin will show different colours in just one day, it could show more drastic results at any time. A little bit of influence could cause bitcoin to drop or accelerate the price.
Now check the price chart of Ethereum:
Ethereum price also decreased along with BTC, but from $177 to $170 (at the time of writing. In this case, the price of only 7 dollars has dropped. Now if you’re smart in calculating then you can assume the loss amount between the Bitcoin traders and the Ethereum traders. So, maybe Bitcoin has the highest price yet altcoins are safe for investment because they have a lower effect on price fluctuations.
Bitcoin Bull run predicted in 2020 — where will altcoin stand?
The past bitcoin Bull Run was lavish for the cryptocurrency industries. Bitcoin Bull Run may have created a negative platform for altcoins for a couple of days, but that didn’t have much effect. Soon after the bull ran the altcoin market saw a huge profit. Now, the next bull run for Bitcoin is expected in the year 2020. The reason for this was bitcoin halving.
The date and time are already on the internet, which is going to happen in March 2020. This halving event will reduce the reward volume from 12.5BTC to 6.25BTC per mining operation. Halving makes bitcoin a scarce asset. Still, the price of Bitcoin is going low and not sure of anything in the future. Altcoins are acting stable in this scenario. There is no such thing like halving that could lead to turbulence in price and market caps.
If we compare altcoins and bitcoin from a technical point of view, bitcoin has multiple flaws in its system. Those flaws are dragging the illicit activities within the network. This is causing the loss of BTC. Consensus mechanism drives bitcoin division into bitcoin cash. So now you can understand that even though bitcoin captures the highest price, the highest market cap and even holds the maximum market still some bugs in the bitcoin ecosystem are thriving on the altcoins market.