Bitcoin vs altcoins War 2: Why Bitcoin wins

Bitcoin may not be quite as sturdy as we thought earlier, but it is still a very strong player. The digital currency has been growing without security failures for eight years now and has been time tested a lot more than its significantly younger alternatives.

Furthermore, Bitcoin is easier to access and has more merchants, exchanges, hardware, and software to support it. Bitcoin is significantly more liquid, with a much larger market cap than any altcoin. It possesses the biggest developer ecosystem and attracts the majority of business people who create startups around it and put a lot of physical efforts, dedication, intellect, and creativity in order to make it better and more useful.

Any startup based on Bitcoin already has a significantly larger prospective client base while younger altcoins and the new ideas around them have to work hard at attracting a sufficient user base. So, why create a new altcoin instead of utilizing BTC from the start? The barrier of entry would be much less and the user base much bigger. Any new Bitcoin service will benefit from the built-in network effect that new altcoins have yet to achieve. The principal benefits of Bitcoin here are network effect and proven security.

There are also worries concerning fraud and misuse which are proliferating other cryptocurrencies. Cryptocurrency exchanges and Initial Coin Offerings (ICOs) are still unregulated and potential investors are overloaded with news of new cryptocurrencies. Furthermore, many altcoins have an author and founder who works like the benevolent dictator for the altcoin and can manipulate it at will.

These factors can deter people from adopting new altcoins, whereas Bitcoin has obtained sufficient trust among people as an alternative to national currencies. Zimbabwe and Venezuela are excellent examples of this.

THE BOTTOM LINE

While they may be in direct competition now, altcoins may eventually find their own niche an work in accord with Bitcoin, with each performing its own specific role in the market. For instance, smaller transactions for Brick and Mortar stores could utilize Litecoin or Dogecoin, while Bitcoin could be used for larger or interstate payments. For untraceable transactions, we can have Monero, and Etherum would be the go-to currency for smart contracts.

Where do you stand on the Bitcoin vs altcoins debate?