For the past ten or so years, whispers of a novel digital currency named ‘Bitcoin’ have been circulating around the globe. Yet today, the hum of chatter about alternate cryptocurrencies, or ‘altcoins’, is becoming increasingly more prevalent. So, what exactly is an altcoin?
In this context, ‘alt’ represents ‘alternative’. It’s a vague descriptor and almost as inscrutable as music genres where ‘alternative’ is a term that just seems to elude definition. Let’s start with understanding Bitcoin to help elucidate the concept of altcoins.
Around 15 years ago, a somewhat shadowy figure by the name of Satoshi Nakamoto brought Bitcoin into the world. Soon after, cryptocurrency became a part of our everyday vernacular. We know very little about Nakamoto. Some conspiracy theories suggest that he may be an alias used by another individual or group.
As the Bitcoin revolution took off, we heard anecdotes of fortunate early adopters. Among them, a certain pizza joint that accepted Bitcoin upon its unveiling and made a handsome profit as a result.
The structure of Bitcoin depends on blockchain technology, which guarantees transparency and security. This makes Bitcoin a form of decentralized finance (DeFi), given that it quiets the need for a middleman to approve transactions. Some businesses are promoting their acceptance of cryptocurrency, indicating that Bitcoin adoption is being led by certain sectors more than others.
For example, the casino gaming industry enthusiastically utilizes cryptocurrencies like Bitcoin. The appeal is sensible. Casino gamers stand to experience tangible benefits from integrating cryptocurrency into their gaming activities.
DeFi transactions are generally faster, allowing individuals to deposit money into their online Bitcoin casino accounts without delay. A second benefit is the preservation of anonymity. In making payments, gamers are not required to provide extensive personal information like addresses.
Casino and gambling brands that employ the use of Bitcoin may offer lower transaction fees and greater transaction transparency. With every transaction recorded on a public blockchain ledger, it is apparent that Bitcoin is designed to divest some control from financial corporations while securely maintaining transparency.
But Bitcoin’s influence reaches far beyond the gambling world. Retailers globally now accept Bitcoin, with payments being made for even everyday items like cinema tickets and meals via digital wallets.
So, how do altcoins fit into this scenario? Simply put, any cryptocurrency that isn’t Bitcoin can be deemed an altcoin. Most have been designed to develop or provide an alternative to Bitcoin’s infrastructure, often using similar blockchain technology, thus progressively changing tech-related operations worldwide.
Altcoins are available in a multitude of forms, including meme coins, which are built around a popular viral meme. An example would be Dogecoin. Other popular altcoins include Ethereum, designed initially to accommodate smart contracts and self-executing contracts.
While Bitcoin holds the largest market share, altcoins collectively account for a rather significant proportion of the cryptocurrency market cap. Some of these altcoins offer unique attractions, such as being faster or offering heightened security.
The world of altcoins and Bitcoin continue to evolve, with altcoins being in earlier stages of development compared to Bitcoin. Despite this, they are traded widely, revealing trust and enthusiasm for the potential of this growing sector of finance.
Altcoin adoption does depend on coin-specific features and uses. For instance, Ethereum has seen considerable adoption owing to its smart contract functionality. This has propelled the growth of decentralized finance (DeFi) and non-fungible tokens (NFTs).
As it stands, Bitcoin persists as the more globally accepted option, given its track record in continually growing sectors like gambling. So, as the cryptocurrency conversation continues, it’s a safe bet that both Bitcoin and its ‘alt’ counterparts will play pivotal roles.
