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Knowing the meaning of alt-coins: recognizing a shitcoin

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Written by   114
7 months ago

Money is equated to value.

Value gives an object its own significance. It is the mere reason why we acquire and support a tangible material: the need — its own purpose.

For today's The Cryptocurrency Wiz article, let us talk about the meaning of alt-coins specifically the booming numbers of sh*tcoins in the market.

What is a shitcoin?

A sh*tcoin is a cryptocurrency that has little to no value.

The amount of a cryptocurrency whenever we trade or exchange it has something to deal with its value. As a form of money, cryptocurrencies had their accumulated worth mainly because of the significance given by their users and adopters. Every token with a user means there is an allotted market for them. However, with the booming economy of these 'virtual tokens,' the value was depreciated over time.

Basically, a shitcoin is a virtual coin that has failed on its inception. There are a variety of reasons why but most commonly, the failure shitcoins had experienced are caused by flop investments and definitely a bad project, to begin with.

How to spot a shitcoin?

As a value of exchange, cryptocurrencies had been essential to people. With the booming numbers of crypto-adopters and so different alt-coins were also created. However, we should also take note that there is a complex system these coins undergo before their actual inception — to gain economic interest at the very least.

Bear in mind these three factors to consider: development, value, and purpose.

Development

A cryptocurrency coin was made by an entity, group of programmers, or institutions for certain purposes. These people behind the project are called developers. They are the ones liable and responsible for the inception, workflow, and creating the "purpose" of a coin.

If you want to know the meaning, basically everything about a coin, you should read about it via its whitepaper. This whitepaper is an informational document that promotes or highlights the features or solutions of a product or service an organization has to offer. You can think of it as the pamphlet or the handbook that specifies the overall projection of the cryptocurrency token.

There are developers, institutions, and investors that help to oversee a coin's growth. These people are responsible for the ecosystem of the coin. They are the core people who actually had to or have been into adherence on a cryptocurrency coin's project.

Usually, developers are programmers that formulate the schemata of rules and the technology associated with the token. As I have mentioned in my previous article, an alternative coin can be a modification or a new set of technology made to innovate. Likewise, we can associate how developers of ERC-20 based cryptocurrency tokens made use of the Ethereum blockchain, and sometimes, how some programmers are dedicated to devising new Blockchain programs on the coins that they are proposing such as the Bitcoin blockchain and the developing Pi blockchain.

Purpose

Everything has a purpose: to make or change things.

A cryptocurrency coin has its own purpose. Mainly, they have different protocols made available to appeal to everyone, particularly to its target audience. The development and purpose are correlated. Thus, it is integral to give a cryptocurrency the value it's supposed to have.

Whenever you wanted to support a coin, always check out the purpose: What are its benefits? How it can help me? What is the product/s or service/s associated with the token?

The questions should be answerable, if any of the following or nothing can be answered at all then definitely it's a shitcoin!

Value

Every form of currency had its value generated by its users. Just like how a fiat was backed up by a central government and the economy of a country — a cryptocurrency determines its worth based on how much people want it. More users mean more demand.

Based on the project, the future of development, and the primary purpose of a cryptocurrency, it can help in making and stabilizing a cryptocurrency coin's worth.

It is also worth noting that the value of a coin can be affected by several factors such as the market economy, people's interest, and adopters' benefits on using the cryptocurrency coin.

to conclude:

Without the three, there is no guarantee that people will take an interest in a certain cryptocurrency coin project. As the value exists on demand, the interest of the public is the most important thing to put in mind.

You should always ask questions and these must be answerable. Either by yes or no, it can help you to know the coin well. You can check their white paper, it is worth the try. Most especially, do your own research (DYOR) for it is a fundamental aspect to safeguard your investment to further losses later on.

With the 5,098 altcoins and counting that are existing in the vast world of cryptocurrencies, be vigilant and know what you are up to.

This is the cryptocurrency wiz by @francescawrites, I hope that you'll learn more about cryptocurrencies. Let's all hodl and hustle!

For the next The Cryptocurrency Wiz article, let us discuss further these shitcoins especially with the booming numbers of these invaluable tokens in the market. We will check out the examples of some projects that will likely and had likely to be a part of the unruly world of shitcoins.

Hi! I am @francescawrites and thank you for reading this write-up, tailored just for you! I cover up articles about topics that interest you and me, under the sun — name it all!

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Written by   114
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Comments

Another insightful content.

One question though, what's the difference between crypto con and token? I hope for your response. Thank you!

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