Is there anyone that knows why there are lots of altcoins?
Will they all achieve to go higher?
Will they all achieve to go higher?
Nah lots won't come of the ground...
Topic: Why so many altcoins? (Read 619 times)
Nah lots won't come of the ground...
Is there anyone that knows why there are lots of altcoins?
Will they all achieve to go higher?
Will they all achieve to go higher?
Nah lots won't come of the ground...
Even though I mine altcoins, I really think the proliferation of alt-coins is bad for Bitcoin and the eco-system in general. Any value stored in altcoins is essentially an inflation on digital currencies as a whole, as the price of the dominant digital currency (BTC right now) is dictated by the supply and demand, so alt-coins are effectively a way to increase supply beyond the original mechanism BTC introduced. Of course, this all hinges on people believing they are valuable - much like any currency.
In the end, I think it's best if we have one dominant currency which has a reasonable distribution across the user base. Right now, due to the nature of the mining/difficulty process, all of the digital currencies tend to have skewed distributions where a very small number of users hold most of the coins. (This is the primary reason we see alt-coins created every day - launching a coin puts you in a profitable position). This trend will likely increase with the life of a currency, just as it has with USD (which is majority held by a small number of people), unless some form of redistribution system is added, such as a progressive tax (coin rot?). But that presents a major issue, since no one would move from BTC to something else if such a system was added. So, unless there is a compelling reason not to - I suspect we will see the continued launch of alt-coins, and if those alt-coins become somewhat successful (as LTC has), they will act as an inflationary mechanic on the dominant coin.
In the end, I think it's best if we have one dominant currency which has a reasonable distribution across the user base. Right now, due to the nature of the mining/difficulty process, all of the digital currencies tend to have skewed distributions where a very small number of users hold most of the coins. (This is the primary reason we see alt-coins created every day - launching a coin puts you in a profitable position). This trend will likely increase with the life of a currency, just as it has with USD (which is majority held by a small number of people), unless some form of redistribution system is added, such as a progressive tax (coin rot?). But that presents a major issue, since no one would move from BTC to something else if such a system was added. So, unless there is a compelling reason not to - I suspect we will see the continued launch of alt-coins, and if those alt-coins become somewhat successful (as LTC has), they will act as an inflationary mechanic on the dominant coin.
Everyone wants their coin, which they premined, to get successful and for them to become rich. They are usually either copies of Bitcoin or Litecoin with tweaked settings.
Every alt coin developer like to be bitcoin and get rich but they don't survive in long run which is already known unless they come up with something innovative that bitcoin don't support
Is there anyone that knows why there are lots of altcoins?
Will they all achieve to go higher?
Will they all achieve to go higher?
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