Why Bitcoin is Different than other Cryptocurrencies

How People Progress in Bitcoin

  1. Wow, Bitcoin is amazing! There’s a limit to how many will ever exist and significant control over my own money. How do I get some?
  2. Mining sounds really cool. That sounds like where the money is going to get made. How do I get miners and start making some Bitcoin?
  3. Mining looks really hard and difficult. I guess it’s better if I just buy it. Now where can I go buy some?
  4. Awesome, now I own some Bitcoin, but what are all these other coins? Are they going to take over sometime?
  5. I want to hedge against Bitcoin self destructing somehow. Maybe I should buy some of these altcoins.
  6. I can’t possibly look into every altcoin there is, there’s just too many of them. How do I choose?
  7. I know, I’ll just buy the most popular ones since they’re probably the most likely to have any chance at all of beating Bitcoin anyway.
  8. Hmm, but the popular ones look pretty expensive. Maybe I’ll buy some of these other ones that are just starting.

Why People Buy Altcoins

  1. Bitcoin may have some catastrophic failing that the altcoin is not subject to.
  2. An altcoin may have some future utility that is significantly better than Bitcoin allowing the altcoin to overtake Bitcoin.
  3. Even if Bitcoin continues to be the most valuable cryptocurrency, there may be room for altcoins to serve some other niche and hence may not be bad bets in their own right.

Bitcoin Catastrophe

Future Utility

Niche Usage

What Makes Bitcoin Different

An Example

Conclusion

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Bitcoin Educator, Developer and Entrepreneur. Book: https://amzn.to/2RSlnTb PGP Fingerprint: C1D7 97BE 7D10 5291 228C D70C FAA6 17E3 2679 E455

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Bitcoin Educator, Developer and Entrepreneur. Book: https://amzn.to/2RSlnTb PGP Fingerprint: C1D7 97BE 7D10 5291 228C D70C FAA6 17E3 2679 E455

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