By Jade Ow
Every day, new altcoins are created. More and more people try to deploy their get-rich quick schemes through free services such as CoinCreator and Build-A-Coin, only to fail, leaving many forgotten altcoins, with negligible values littered on the streets.
It is very much simple to create an altcoin. All you have to do is copy the open source code of another coin, then rename everything, and perhaps make a few improvisations. This is the main reason why most of those altcoins are merely copies of the more prominent coins such as Bitcoin and Litecoin.
Bitcoin was the very first of its kind to appear, and at that time altcoins had not even appeared yet. Thus, most people at that time would have only heard about Bitcoin. When the first few altcoins did gain publicity a few years later, the crowds were probably too busy collecting Bitcoin from faucets, or integrating the new payment system into their businesses to even notice.
Another reason would be something of the chicken-and-egg model. Newcomers to the world of cryptocurrency note that Bitcoins are the most valuable ones, thus they do not bother to find out about the less prominent ones. However, it is also known that the more people mining the coin, the more the value of the coin. Judging from this, the altcoins out there will have a very hard time trying to shine.
Furthermore, not many people know of even the most famous one, Bitcoin. According to a study, less than a quarter of the population actually do use bitcoin, and even less will bother to mine it. Considering that altcoins are far less heard of than Bitcoin, it is unlikely that many people would even use it, thus the altcoin’s value would be greatly decreased as what cryptocurrency requires is more computers, and therefore more users to mine it and let it flourish.
Even if an altcoin does somehow manage to survive, it may not be able to overtake Bitcoin. Just look at Litecoin. Its price was climbing fairly high, and then it dropped again. It seems that all altcoins will never be able to break the barrier of Bitcoin’s $200-odd value.
However, again, there is no harm in trying. There is always a chance, no matter how slim, that your altcoin may become famous enough to convince the world to replace the king of cryptocurrency.
Article by Jade Ow
Published 9/10/2015 3:28 AM PST
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