Some altcoins were created to mimic bitcoin's success, and some due to dissatisfaction with certain bitcoin's features.
But there is no doubt that bitcoin has evolved from being a ‘joke’ of the people online to changing the trajectory of financial systems.
Read article "How Altcoins Complement Bitcoins" on bitcoin.com.
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Do We Need Altcoins?
The short answer is 'Yes.' But 700 of them can really cause users to be spoilt for choice. And anyway, many of the altcoins won't be able to stay at the crypto-party for long since it's a tough competition. None the less, they do complement bitcoin.
With the global currency wars going on in the conventional currency market, the last thing our crypto-community needs is a 'crypto-war.' Cryptocurrencies, on the whole, are about bringing liberty back to people and remaking of the already broken financial systems.
Benefits of Having Altcoins
1. Increase Anonymity for Bitcoin
No doubt that we have ultra-anonymous altcoins like zcash, monero and what not. Most of these ultra-anonymous altcoins came about after Snowden Revelation users realize those bitcoin transactions are pseudonymous and not anonymous.
So, an easy way for users to anonymize their transactions... Go to exchanges (shapeshift is a good one) to sell your bitcoin for altcoins, and then convert it back to bitcoin, but to another wallet.
This layering of transactions between cryptocurrencies platforms and wallets make it real difficult for anyone to trace.
2. No Altcoins No Hedge
Technically speaking, "no altcoins no hedge" isn't correct because bitcoin can be hedge with fiat. But who hedges with fiat these days? It's the other way around.
Investors are too preoccupied with bitcoin arbitrage trading, and therefore overlooked the opportunities which lie from buying and selling altcoins with bitcoins for handsome rewards.
3. Financial Infrastructure
The inconvenient truth- majority of altcoins are exchanged into bitcoin before users are able to use them for goods and services, or cash out.
This is due to the under-development of altcoins' infrastructure. Hence, the conversion of altcoins to bitcoin has made bitcoin somewhat like the USD of the cryptocurrency market.
This isn't a bad thing at all. Just in case you squirm at the term 'USD' (dollar monopoly). The converting of altcoins to bitcoins will, in fact, boost bitcoin's demand- and yes, the value too. Dollar monopoly is harmful to economy because fiat money can be printed. Bitcoin can't be counterfeit or created in excess, therefore it is real demand.
End
Knowing that no one pleases everyone and there is a flip side to every coin, including Bitcoin. Whether you agree, agree to disagree, or the opposite, do not just take my words for it, be sure to look it up.
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