When it comes to convincing people they should take a closer look at Bitcoin and digital currency in general, there are a fair few counter-arguments to be made. One of the biggest challenges is explaining why and how Bitcoin is different from the thousands of alternative currencies in existence today. After all, if Bitcoin is so special, why are there over 7,000 altcoins all trying to achieve the same goal? Isn’t an altcoin the same as Bitcoin?
The Altcoin Game Is Creating Confusion
While there is nothing wrong with the concept of an altcoin these days, the total number of digital currencies available is mind boggling. In the 2011-2012 range, there was maybe one new coin every month – or even less frequent -, but things have accelerated a lot ever since. At the time of writing, there are over 7,000 different digital currencies available to users all over the world, and new ones are created every day.
This is causing a lot of confusion among people who are not versed in the history of digital currency. While most of them will have heard of Bitcoin by now, nearly every altcoin wants to achieve the same goal, albeit they might offer more or fewer features. But on the surface, people don’t see the value in Bitcoin if it can be reproduced under a different name quite easily.
Open source software, including Bitcoin and its code, can easily be copied by those who want to. But that does not put an altcoin on the same level as Bitcoin, although there are some exceptions which are doing far better than most. That being said, one might go as far as saying how an altcoin devalues the public image of Bitcoin, making it less appealing to novice users and investors.
Compared to the different number of fiat currencies in existence, the digital currency space is quite oversaturated. However, there is a good reason for that difference, as every country can issue one currency whereas the digital currency ecosystem belongs to everybody and does not limit people in their imagination.
Making a new version of Bitcoin sounds very easy on paper, but it is much harder to do than most people anticipate. Modifying the code takes some skill, although one can pick up the necessary knowledge rather quickly. The hard part comes in the form of promoting the coin and getting people to back it by putting a price tag on it. Bitcoin has gone through all of these struggles as well, and seven years later, the price is still volatile. Without a proper roadmap and team of developers, nearly every altcoin in existence will ultimately fail – exceptions aside.
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