Bitcoin vs Alt Coins Returns: This article gives a comparison of the performance of Bitcoin vs the altcoins.
2017 was well off both for the bitcoin investors and those, as well as altcoins. The altcoin value growth turned to be effective than it could be expected. For those, who do not know what altcoins are. These are all cryptocurrencies except bitcoin. Sometimes, tokens are also added in this category.
In the era of finance, people want to invest in cryptocurrencies because it can make them a lot of money. Bitcoin has proven to be a very beneficial investment for many, but there are more other to investing trend than just Bitcoin. Many of altcoins like Ripple also exist and they may be a good option for a new investor.
In order to find the answer, we have come up with a comparative analysis of the returns that you would get if you invested in Bitcoin or alternative coins. Here are the brief points on what you expect from both cryptocurrency trends, and which option wins on every front.
Bitcoin is the most stable currency in current time because it’s the most strenuously traded and the most well-known. People feel easy and reliable in investing in Bitcoin, and that’s not something to be taken lightly.
If Bitcoin’s delusion, people will still trade them. The same cannot be said with other digital currencies that aren’t so global. With other cryptocurrencies, there’s no saying that a typical cryptocurrency exchange will continue to trade them if the crypto-boom doesn’t continue.
2. Real Life Instance Based on Statistics
Just for an example, the present value of Bitcoin is $2500 in June 2017, after a year the value of Bitcoin may increase up to $10000 (increase by 400%). And the value of Altcoin was just $10 in Jan 2017 and has reached epic $350 in July 2017 (increase by 3500%). In the case of Altcoin, the waiting time would be less and there are chances of higher profits. After reaching the heights at $350, altcoin as on Aug 2017 is $195 (falling by 50%), such falls won’t be seen with BTC.
If you are investing in Bitcoins then it will definitely give good returns but after some time. But other cryptocurrencies can find a better growth in a short duration.
- Future Utility
Mainly altcoins are technically different from Bitcoin and that is often the reason for why people invest in them. The reason is all altcoins have much of the same utility of Bitcoin plus something else, the altcoin can be more useful than Bitcoin.
We can say they’re right. If you have a many of the same technical properties, of course, an altcoin existing in a vacuum would do about as well as or maybe even better than Bitcoin. Even if the code is considerably different but the economics is similar, they mainly have the same effect in a vacuum.
Of course, we don’t want live in a vacuum and the Bitcoin existence affects the future utility. A feature that differentiates altcoins haven’t been proven to be that useful and thus haven’t been added to Bitcoin.
Both coins have a lot of risks affixed to them, or we can say the nature of cryptocurrency also being criminal currency. Currently, there are no government-backed, government-guaranteed cryptocurrencies out there.
Therefore, Bitcoin obviously attracts the most gambler as well as also the chiseler. That’s why Bitcoin as a riskier choice for most. The major hack earlier in 2014 proved that savvy Bitcoin investors lose it all because of theft; who’s to say that won’t happen again?
That being said, a lot of altcoins aren’t also better. The high fickleness can easily mean an overnight crash. It could be revolting, but since they are on a budget, to begin with, that also leaves them with a lot more ease of recovery.
- Investing in Bitcoin v/s Altcoin
Total Value of Your Bitcoins Today: $96,000 (Profits + Initial Capital)
Total Value of Your Top 10 Altcoins Today: $194,730*
You have $86,000 worth of bitcoin with Option 1, from an initial $10,000 of capital. With Option 2, you have around $194,730. It is assuming that you invested in the top 10 altcoins a year back without doing any extra efforts; just simply choosing the coins which are biggest in size according to market capitalization. In the top 10 list, only 2 altcoins had a lower rate of return than Bitcoin, which were Augur (3.6x) and Maidsafe (3.8x). But mainly all coins generated a more profit.
That’s why it is worth to know the comparison of Bitcoin vs Alt coins return while investing.
- Niche Usage
Many altcoins have tried to scratch out niches for usage. Dogecoin, for an instance, was built on tipping each other and transferring value. Ripple was mainly developed as a way for banks and large institutions to transfer value.
The main reason a niche coin makes sense is if it can do something that Bitcoin can’t do. What a Dogecoin quickly found out is that Bitcoin tipping is just as easy. We can argue that this will be a mistake again due to tax fees in Bitcoin and then Dogecoin has played a role to going forward, but Dogecoin tipping was never on-chain to begin it and neither the Bitcoin was tipping. Do you think tipping come back into fashion, this is a thing that the Bitcoin ecosystem can easily manage? Banks transferring value can do that with Bitcoin.
7. Past History
We have to come in charts. According to study, it’s clear altcoins became more beneficial than Bitcoin did in the past ten years.
Here’s the performance of different coins they charted for Bitcoin and the most important cryptocurrencies of the decade:
- Bitcoin: 860 percent increase
- Ethereum: 2,900 percent increase
- Ripple: 2,400 percent increase
- LiteCoin: 1,300 percent increase
- Monero: 1,400 percent increase
- Dash: 3,000 percent increase
- Waves: 1,083 percent increase
- Maidsafe: 380 percent increase
- NEM: 4,900 percent increase
According to past history, Bitcoin returns will not as high as the others but it matters that to start investing in cryptocurrency rather than of what you choose.
With a ludicrously big market cap of approx $250 billion on a given day, it’s difficult to see Bitcoin price doubling anytime soon. The law of large numbers indicates that it takes a serious amount of attempt and hype to make it happen, and it’s not sure Bitcoin will be able to continue its path.
Altcoins, on another side, have small prices and high maximum amounts of coins. And finally the result? A more potential for a large market cap, and high potential for profit.
We can say Investing in cryptocurrencies may be risky, as it also happens when investing in the stock market. this is not a “get rich quick” strategy. The industry needs patience, actually more than that of it, and then will you reap the success. This world is extremely volatile to bad as well as good news, and prices can drastically fluctuate or we can say at any time from one minute to the next. In the end, cryptocurrencies provide the best platform for investors who want to make their money increase.
So, this is the actual issue which one should you invest in? Obviously, we all know Bitcoin is king of the digital currency world and, that’s why it is a safer option for investment. But also altcoins have become extremely popular amongst day and not time if you can be chosen wisely, grow with up to 500% in a day. Altcoins are also riskier as any movements in their prices are directly linked to Bitcoin activities.
Bitcoin is obviously more expensive than altcoins, but altcoins growth is faster than the king of cryptocurrency. Therefore it is better to know the comparison in bitcoin vs altcoins returns.
Fortunately, there are so many tools on the Internet that help you to analyze the charts of altcoins and predict your next move. You can also communicate with different communities and forum over social networks to stay up to date It’s is just like playing chess.