It seems that, anywhere you look, crypto articles across the internet are flying the flag for Bitcoin – that is to say, crypto-friendly articles are flying its flag, other forms of media, not so much. But cryptocurrency isn’t all about Bitcoin. In fact, one of the reasons the market has grown into the beast it is today is the emergence of altcoins – a form of cryptocurrency that exists outside of Bitcoin’s blockchain.
A number of altcoins have been making steady gains over the years; the biggest one undoubtedly being Ethereum, which has seemingly set the course for a sustainable crypto future. But even some of the smaller altcoins have steadily been trickling their way up the ranks. The Flux Price, for instance, has recently experienced a much needed boost due to the relative softening of BTC’s value.
But speaking of Flux, the price at the moment remains below $1, with price predictions ranging between $2.91 to $5.50 by 2030. So what is so important about these coins and why are they essential to the development of cryptocurrency as a whole? Below is a look at altcoins, their benefits, their influence and why 2023 might be the year they really explode.
The Diversity Of Altcoins
Firstly, the reason altcoins have been consistently growing in popularity is due to the diversity that they provide over Bitcoin. For instance, there is not just one form of altcoin. In fact, there are a number of different forms, all of which benefit users in different ways. These include:
- Payment Tokens
These are utilised as a currency, just as the name suggests. Like Bitcoin, these are payment tokens that can be traded or held in the hope that their value goes up.
- Stablecoins
Stablecoins are designed to reduce the volatility of the crypto market – volatility that crypto investors know all too well. They are pegged to fiat currencies, meaning that they will always match the value of their asset, no matter what is going on in the market.
- Security Tokens
These are assets that have been assigned a value – such as real estate or stocks. Regulated by the Securities and Exchange Commission, they are designed as securities, meaning the assets themselves must be secured and held.
- Meme Coins
Memecoins – although originally invented as a joke – are essentially payment tokens, but have a far bigger influence online, with certain coins able to shoot up with a simple influencer shoutout.
- Utility Tokens
These are used to provide a service within a network. ETH, for instance, is a utility token. It’s designed to be used in the Ethereum blockchain to keep it functioning and stable.
- Governance Tokens
Governance tokens give owners the right to vote and control the course of a particular blockchain. Essentially, they form the same concept of utility tokens, but due to their specific purpose – to give owners a right to vote – they have been given an alternate name.
As well as these different tokens, altcoins are also created on their own blockchains, all of which have their advantages – including greater user control, lower transaction fees, blockchain games, and NFTs.
The Benefits Of Altcoins
Despite having a smaller investment market than Bitcoin, altcoins are essentially improved versions of the original concept. They were created to “plug” the shortcomings, making them far more usable for the average investor and influential when it comes to the lead up to Web3.
Many of these coins also have a good chance of surviving no matter how bad a crypto winter can get, simply because of the utilities that each provides. Even if a user is disinterested in building a portfolio, for instance, they might purchase ETH to monetise their in-world assets in The Sandbox – an Ethereum-based metaverse where users have free reign of a gaming ecosystem.
The Greater Implications
This is important when it comes to cryptocurrency, because the public perception – especially when it comes to government and government regulations – is not overwhelmingly positive at the moment. Despite recent debacles such as the SVB collapse, governments are still intent on keeping centralised systems in place, with a vision of incorporating cryptocurrency in some form, but not in the way it was originally envisioned back when the first whitepaper was created.
With altcoins, however, cryptocurrency can move far beyond just digital currency. They are part and parcel of a whole digital metaverse, where users and companies can spread their wings and achieve things they would not have been able to achieve before – the success of artists and NFTs is a direct example of this.
Altcoins In 2023
It is this utilisation of blockchain that might make the difference for cryptocurrency, and it is happening now. In 2023, more and more companies are looking to incorporate themselves in the metaverse in some form, utilising a number of altcoins and utilising their native blockchain to reach a whole new market.
Users, too, are not only trading on blockchain but immersing themselves in the possibilities, all due to the invention of altcoins and the opportunities that they bring. We might not see the full effects of altcoins in 2023, but it is going to be a year where altcoins gain even more traction and forge the path to Web3 and global cryptocurrency adoption.
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