Why Bitcoin Reigns Supreme over Altcoins
- Bitcoin currently accounts for 95% of the value, and volume of cryptocurrencies traded in the market.
Bitcoin currently accounts for 95% of the value, and volume of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term traded in the market. Bitcoin has managed to reign supreme over altcoins because it was the first cryptocurrency to exist, and initially attracted all of the mass media attention and adopters.
With digital currencies, network effect plays an important role: since Bitcoin has the highest adoption rate among other cryptocurrencies, it creates a virtuous cycle of investment and interest. More miners will invest in mining Bitcoin over other altcoins. With more miners in the network, Bitcoin is arguably more secure as an accurate public ledger, increasing the confidence in Bitcoin even further.
Moreover, Venture Capital investments are targeted on improving Bitcoin technology as opposed to the other clone cryptocurrencies. With increasing financial and intellectual capital, a better product can accelerate from the rest.
Some notable projects in this space which I would keep an eye on are Maidsafe, Ethereum, NXT, Ripple and Counterparty. These are tangential to Bitcoin either adding much more functionality, or improving on the protocol, or building on top of the Bitcoin Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term.
Bitcoin currently accounts for 95% of the value, and volume of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term traded in the market. Bitcoin has managed to reign supreme over altcoins because it was the first cryptocurrency to exist, and initially attracted all of the mass media attention and adopters.
With digital currencies, network effect plays an important role: since Bitcoin has the highest adoption rate among other cryptocurrencies, it creates a virtuous cycle of investment and interest. More miners will invest in mining Bitcoin over other altcoins. With more miners in the network, Bitcoin is arguably more secure as an accurate public ledger, increasing the confidence in Bitcoin even further.
Moreover, Venture Capital investments are targeted on improving Bitcoin technology as opposed to the other clone cryptocurrencies. With increasing financial and intellectual capital, a better product can accelerate from the rest.
Some notable projects in this space which I would keep an eye on are Maidsafe, Ethereum, NXT, Ripple and Counterparty. These are tangential to Bitcoin either adding much more functionality, or improving on the protocol, or building on top of the Bitcoin Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term.