If your only exposure to cryptocurrency is through Bitcoin then it might be quite the shock when you start to read & research up on the cryptoworld and find that there are hundreds of cryptocurrencies out there other than Bitcoin. Of course Bitcoin is the most popular cryptocurrency because it was the first. A pioneer exploring new digital landscapes. Bitcoin has the most recognition, but there are hundreds of coins out there and they all have different purposes. Keep reading as I break down why there is more then just Bitcoin out there and why that is actually a great thing for you as a beginner!
The Bitcoin Brand
While cryptocurrencies are still not a "mainstream" thing just yet, the Bitcoin brand name has been around for almost a decade now and it certainly has started to pick up global recognition. Bitcoin is the Versace, the Porsche, the [insert high-end brand name here] kind of brand now. It is for this reason, it may be that a beginner in cryptocurrency has only ever heard of Bitcoin and has no idea that there are thousands of other similar cryptocurrencies out there.
This is a pretty hard fact to swallow at first. I didn't understand why at first either. "Why can't there just be Bitcoin and everyone just use that?" It's a simple enough question and a natural one for beginners to ask. I felt the same way, but once I learned HOW Bitcoin works and why it does what it does then I realized the need for much much more then just our good friend Bitcoin.
Solving Problems With The Blockchain
The real reason there are so many coins & tokens is that while Bitcoin acts somewhat like a currency, not all cryptocurrencies actually work the same way. In fact, most are very different from each other and serve some purpose. Look at the other top coins like Ethereum (which I intro in this article), Ripple, Bitconnect, and Steem. They all make specific uses of blockchain technology. If you are still a bit sketchy on blockchain technology see my article here, but the gist of it is that all these platforms use the blockchain as the base of their application or software and the concept has allowed for a solid foundation for new developments. Each coin has a use in the version of blockchain used in the project and that is why we end up with a flood of coins and tokens as more and more software companies enter in the market with their projects.
Living In A Coin-ucopia
I almost like to think of each one of these coins or tokens as stocks of the project. They can be collected and traded. Some days they are up and others they are down... Now that I think about it, they are pretty much like Pogs. The only difference is that now we are older and playing for bigger stakes. Don't let the plethora of coins & tokens overwhelm you. Start with the big 3 (Bitcoin, Ethereum, Litecoin) learning all you can about them and then branch out to smaller coins that may support applications that you will use on a daily basis. Steemit.com is a great example of a cryptocurrency based project that I use almost every day. Research, watch, bet and slam away! It's the wild wild west out there for the time being and we happen to be living in a Coin-ucopia!
All Your Coins Are Belong To 'Stache
For more fun original cryptocurrency content, check out my blog:
https://www.CryptoStache.com
I don't know what heights does future holds for cryptocurrencies. But one thing I'm quite sure of is that the underlying blockchain will be a key to solving real world problems in multiple domains.
Exactly! The blockchain is the real star here, but it doesn't get the spotlight like Bitcoin does.
Of course people don't care what data structure (database) facebook is using. What they see is the application which is an User Interface. Similarly Bitcoin's application is being Money, most of the non technical people won't and doesn't have to understand it.
But initially financial companies specifically Goldman Sach never addressed Bitcoin but used to always address it as Blockchain technology. I think it depends as it suits personal need peoples use the phrase blockchain or bitcoin or sometimes are really get confused with each other.
Good point, yes many people will use Bitcoin but still have no idea how it really works. They just know its cool and their friends are using it. Regardless, I still like to push the tech aspect of Bitcoin and cryptocurrency, because knowing is half the battle TM! lol
Yeah, absolutely you are right. It's better to know something that you are investing your hard money into. Most people see the video of Bitcoin reaching 500K and just dream of becoming millionaire. But rather we should somehow promote and educate people with whatever limited knowledge we have to make this a better place.
I completely agree with you. Keep up the good work mate. Cheers!!!
Thanks! Hope you like my original crypto blog!
I do! I just read your post on ICOs, its totally helpful for the new people who are joining the community every passing day, and let's them know that there's a significant amount of risk associated to it. Keep going.
Also, in case you're interested in programming, I've recently started a Getting Started with Ethereum Smart contracts series, I'd love to get some feedback.
Yeah, following you my friend...
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STOPLove the girl with the mustache, I imagine your girl friend looking like that :)