Simply put Alt Coins is the combination of two different words “alternative” and “coins”. They refer to other cryptocurrencies in use aside from bitcoin. This means that any other cryptocurrency aside from the popularly known bitcoin is refer to as alt coin.
Examples of alt coins are Ethereum, Bitcoin Cash, Bitcoin Gold, Monero, Litecoin, Dash, Ripple etc. The alt coin Bitcoin Cash is the second most expensive cryptocurrency in the market but its selling price is far less compare to bitcoin.
Bitcoin Cash current price is about $455 while bitcoin price is $6,455. The question now is why are alt coins important, why can’t we just maintain using bitcoin and ditch alt coins. Well it seems there are some reasons why these coins should be around. Let’s see some reasons below.
WHY WE NEED ALT COINS
1. Competition: BTC is not the only cryptocurrency in the world yet it is so expensive, can you imagine if it had/has no competition. Yeah the price will be outrageous. So we need alt coins around to mount some subtle pressure on bitcoin and give users/investors options to invest in.
2. Wealth Creation: Bitcoin had/has already made some persons rich and these coins also provide opportunities for other people to make money from cryptocurrency investment. This is one reason why we need these coins around.
3. Multiple Use: During ICO and pre Token sale, each project have its white paper. They all have different reasons, goals and visions. So cryptocurrency provide multiple options for use. For example, some cryptocurrencies are best used for business transactions, others are aimed at simplifying online purchase etc.
4. Multiple Choice: Thanks to alt coins cryptocurrency users/investors now have options to select from which coin to invest or make use of. No one is restricted to to using just one cryptocurrency(bitcoin).
5. High Profitability: There is a possibility of making high profit when you swap the use of cryptocurrency. For example when the transaction fee for bitcoin became too high November last year, users swap to Ethereum as the transaction fee for ETH was low. This means that you can actually trade and make more profit not spending most of your cryptocurrency in paying for transaction fee.
In overall the use/importance of alt coins can not be over emphasized. The prices for most might be low but you can’t take away the fact that we need them around to keep the cryptocurrency market going. Bitcoin is no doubt the king but it is not alone in the cryptocurrency world as alt coins is always there to check mate its activities.