Altcoins are what you call the rivals of bitcoin. You can find about 4,000 alternative coins on the market. You can trade against altcoins on the fiat currencies, should you choose not to trade against bitcoin. Still, bitcoin fanatics have pondered why we need altcoins at all.
The following reasons answer the questions as to why we need altcoins after all, and how these coins can somehow help enhance bitcoin.
Testing Environment
No matter how coin enthusiasts think about it, altcoins can give an interesting testbed for the upgrades and features of bitcoin in the future. While bitcoin is using their own testnet, it is much better to test coins for their cryptocurrency first.
Providing Additional Features
There is definitely some continuous works happening for the advancement of bitcoin, but newer features will always be accepted in the crypto world. Sometimes, the creators of altcoins develop new ideas, which is eventually introduced in the source code of bitcoin.
However, not every attribute evident in altcoins is used and effective in improving such source code.
Competition
While some people think that bitcoin is doing great by itself, it is not always the situation. Competition is a good thing in cryptocurrency, as with every other financial investment. This will make bitcoin bring their A-game on.
In this regard, altcoins give some sort of competition, even though no alternative coins have actually been a big threat to bitcoin so far. Admittedly, bitcoin would not be the same without altcoins as its competition.
Generating a Varied Portfolio
Bitcoin receives the biggest attention from the community. However, diversifying the crypto portfolio can be done successfully through altcoins. Even though altcoins are dependent on bitcoin in order to build market traction, altcoins provide traders a lot of investment opportunities.
Extremely Hard to Close Cryptocurrency Down
Based on the massive numbers of cryptocurrencies available on the market, it is obvious that the authorities cannot wipe out altcoins even if they give it a try. This idea somewhat gives altcoins an advantage in the crypto industry.
The altcoins are flooding the crypto market, and not all of them do not give good results. Remember, it is best to catch a number of affordable coins before their value goes up. In the long run, you can make a decent profit out of them.
