Topic: Real purpose of altcoins (Read 190 times)

That's true. I'm guessing that a majority of the coins were created in order to generate money for the developers and traders - not only for the purposes that it's supposed to serve. Some may be useful enough to last longer than others such as the success of ETH.

It's true that not all these coins will survive, some will lose it's value eventually and people won't use each one and the question is only when. This is the struggle of a trader because no one may ever know until how long is the life of a coin.

Yes ! i really believe in this suggestion of yours sir ! we must to take importance of what altcoins are we going to hold or trade.

You've made a good point.
The vast majority of the coins existing are worthless. They are made because of people's greed.
The coins code is open source, it is very easy for someone with little knowledge of programming to copy paste the code, change the name and some points write a white book and issue it as a new coin in the altcoin market.
That's why it is essential to make some research before buying and avoid following others suggestions.

Well the one thing i am sure of,there will be less altcoins in the future,most of the alts will be worthless and the ones with good product/services will only survive.

Real use case for any coin hasn't been proven yet which is ridiculous but there are some that look promising.

well you can choose not to use their coin and at the same time you can't trade/exchange in their company/business. company/business having their own altcoins can be could their trademark. it is that many altcoins appear today and we don't know some/most of the altcoins so you just have to choose what altcoins you like.

Great point of view,i too dont really think most of the alts will survive in the future,time will come that most of the alts wont have any value and only the alts that has product/services involved will survive because more and more people realizes that they dont need these crappy worthless alts in their lives.

I'd like to compare using current payment cards against cryptocurrencies with the following scenarios.

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Current payment cards go through the following:
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Store -> merchant card processor -> card network (Visa/MC/AX/...) -> issuing bank -> bank account
Timeframe:
   Approval/Reject notice to the cash register within 10 seconds.
   Account settlement happens overnight.

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Current Cryptocurrencies (especially altcoins)
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If both consumer and producer use the same cryptocurrency, the following will apply:
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Consumer selects a service/product and tries to check out,
Store (most likely online) -> wait for payment from Consumer
Consumer sends the coin amount to Store
Store may receive the fund within a few minutes, but waits for the minimal number of block confirmations (6-20?)
Store releases the service/product after receiving required minimal confirmations.

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If the consumer and producer don't use the same cryptocurrency, things get messy:
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Consumer selects a service/product and tries to check out,
Store (most likely online) -> wait for payment from Consumer
Consumer needs to convert her coins to Store's coin via one or more exchanges.
   If the Consumer does not have an account at the Store's coin exchange, the Consumer must open an account.
   Consumer sends her coins to Store's coin exchange from her new wallet/exchange
   Consumer purchases the necessary coin
      If the purchase of the Store coin is not allowed with Consumer coin a new transaction is needed.
Consumer sends the coin amount to the Store
Store may receive the fund within a few minutes, but waits for the minimal number of block confirmations (6-20?)
Store releases the service/product after receiving the required minimal confirmations.

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So, I don't know what the future holds.  I hope all these things can take place in the background and swiftly while I try to check out a product/service from a web site so it feels like I'm using just like any other current payment cards.

But who is going to pay for all the necessary development?  Maybe a new coin for that purpose?

Man got to pay his bill mate, people always find a way how to make money. So my point is diversity make market more colorfull, the more alt the more variation of coin you can trade, every coin have its own purpose also have advantages and disadvantages

I think you will only seek those coins that you are truly passionate about and therefore you will probably only have a handful of coins that use on a daily basis. It is no different than having credit card, debit card, gift card, vouchers, and every other form of money currently available. It will just be a different way to transport your money not to mention simpler because all will have applications. To me it seems like a no-brainer but I again would only have a handful not 50 or 100 of them on my phone.

First of all I do understand the purpose of some altcoins such as BitCoincash (BCH) is trying to address the transaction throughput and txn fees associated with BitCoin (BCT).  The maximum transaction throughput of BCT is 7 transactions per second and BCH's maximum transaction throughput is 7 * 8 = 56 txn per second.

https://bitcoin.stackexchange.com/questions/57452/what-is-the-maximum-number-of-transactions-per-seconds-on-bitcoin-cash

I also understand Ethereum is different because of its support for the smart contracts.

There are few others which I could understand their purpose, but for the vast majority of the altcoins, I don't understand. 

Many wrap their business objectives with ICO of the coin.  Which is great for raising fund to achieve their objectives.  Here is an example.  A new web site will support job free lancers.  They want to provide the IT infrastructure/support to enable that.  I think that is a great idea and many web sites already exist for that purpose.  But they are issuing new coin to support that business idea.  So the market consisting of consumers, who use the service and pay for the service using the new coins, and freelancers, who provide the service and gets paid with the new coins, need to obtain specific coins to use this service.

Now, let's take a step back and look at this.

We need various functions and services in our daily lives.  Do we really want to obtain different coins for different needs?

I personally am not going to go through with that.  I'll skip these service providers that are forcing me to get new coins and reach out someone who accepts existing coin(s) or fiat currency.

Will all these altcoins really survive the market?

My opinion is a definite NO.  The market only needs a few handful cryptocurrencies.  The rest will die out.  The question is not if, but how soon.

That is my opinion.  What is yours?