14

It depends a lot on the specific altcoin you're talking about. For the most part, there aren't a lot of major differences between Bitcoin and the alts. Sadly many of them exist only as the leftovers of pump-and-dump schemes intended to make their creators rich, though there are a few that are interesting in important ways. One of the primary benefits of a ...


9

I find this article convincing in its analysis of the dynamics between Bitcoin and competing networks: The Coming Demise of the Altcoins To summarize briefly, the author suggests: The utility provided by a currency system is related to the willingness of its users to save using that currency. Currencies have a strong network effect. Most altcoins don't ...


9

Quite concisely, bitcoin is to money what email was to letters . . . and the post office is in trouble.


6

There are huge differences between FIAT and Bitcoin. Fiat is created out of thin air "with fractional reserve banking" and other mechanisms, there is no stop on how many will be created. Another problem is that every country is FORCED to create more of it. Since otherwise the value of their money would increase to much, ending all export industry and ...


5

Bitcoin was the first, the most well known and thus has the most network effect. The network effect is extremely important and there are examples were better technologies lost to the competition because of the latter's network effect. In addition, being the oldest running crypto-currency and with the larger market cap means that it was consistently ...


5

Bitcoin is the currency of the future. In order to understand why this is true, there are two key pieces of information that a person must have: The first is an understanding of how money actually works: how it is created, how it enters the marketplace, and what exactly makes it valuable. The second is an understanding of the Bitcoin community and system. ...


4

The realistic, honest answer to this question is that Bitcoin is a "Digital Commodity". Bitcoin cannot currently be described as a digital currency since it cannot, practically, fulfill the basic functions of a currency. The wildly fluctuating USD/BTC exchange rate alone means there is price instability. How would YOU like to offer your labour for a few ...


4

Recently I stumbled across this question as I was supposed to explain what Bitcoin was to my 5-year-old nephew. As the question states that it needs to explain the concept of bitcoin to a non-technical person, I took it a step further and explained it to the kid, who knows nothing (literally). So here goes my 2 satoshis on what is the best explanation (...


3

For non-technical users, I found this video to be extremely clear and helpful in explaining the details of how Bitcoin works: How Bitcoin Works Under the Hood


3

Due to the network effect, the Bitcoin network has the most hashing power behind it, as well as the most investment in it. It had been vetted more than any other cryptocurrency, and the network is watched by more people than the others. It is also accepted by more merchants. This all adds credibility to the network's security, as well as the currency's ...


3

If you subscribe to the notion that names do not matter, then obviously only technical differences can make any altcoin potentially superior. Most altcoins do not meet this criteria, because they are barely more than a Bitcoin clone (possibly with some minor tunings of details such as the block confirmation time you already mentioned). Here are some of those ...


3

The space is so broad that your question can't really be answered easily. In general, altcoins are far more risky but offer more potential reward. In general, altcoin portfolios will require far more management to safely retain value. Also consider that from an investment perspective, bitcoin has more in common with ethereum and dash than ethereum and dash ...


2

This is probably going to be closed as a question of opinion, but here is an answer nonetheless: But if you can not change the total volume of the money, you can not get a stable currency... In other words: For any stable currency, there needs to be a way to adjust the volume of money. Your assumption is that a form of money that is manipulatable will be ...


2

The reason bitcoins is the best is this, how many places can you go to and trade coins on the market, like buying and selling like at Bitrex for example? If you go to these sites what do you have to use to pay for your coins you want to purchase, like ethereum, litecoin, dodge, ect. ect. etc.? You will have to use bitcoins as your currency to buy the other ...


2

Bitcoin is a global payment network on the internet. It is self-sustained and allows users to make payments between individuals like cash. Instead of a company being the referee, Bitcoin is governed neutrally by rules asserted through a network of computers running the same open-source software. Bitcoin is completely transparent, in that anyone can see ...


2

I think most people don't get the decentralized part. To explain, I have made a few questions and their answers: how are bitcoins created? how does it prevent double spending? how do we avoid central authorities? Bitcoin is a distributed ledger. Everyone knows how many bitcoins are around and which address sent how many to which address (sort of). A1. ...


2

Although a simple question, "What gives Bitcoin value?", the answer is not as simple as the question. What gives Bitcoin it’s value, can best be answer by the formula PB = (SW + TX) / BC The value of a Bitcoin is derived from the total value of the Bitcoin used for storage of wealth (SW) plus the total amount of the Bitcoin required for concurrently ...


2

Like fiat money, the valuation of BitCoin stems from its changing share per unit of world GDP transacting in it - the share of world economic activity expected to transact in BitCoin vs. the supply of BitCoin. Consider what gives fiat money value: is it the “faith in and credit of” the issuing government or its quantity relationship to real GDP? The CPI ...


2

I don't consider these to be competitors. Credit cards are a convenient way of doing payment processing on top of fiat currency. Bitcoin is a digital currency on itself. Sure, Bitcoin today can function as a very rudimentary way of doing payments (just like cash-via-mail can be), but it's not particularly good at it - all it provides is storing and ...


1

Why should I start using bitcoins? What is the benefit to me of using bitcoins? Why should I want to? Well, actually those are excellent questions, but it's hard to come up with one correct answer to it. Many people use Bitcoin for many different reasons. You can find some of the reasons below. Bitcoin is like cash Payments are almost instantaneous, ...


1

My list of advantages for Bitcoin over credit cards (and money transfers) are: instant free registration, no id checks (for merchants, their customers, "banks", or any type of user) increased anonymity and control over privacy no self-regulation1, no limits no authority exists to report to tax and other authorities greater security lower transaction fees ...


1

As a consumer, the choice of payment method comes down to a tradeoff between convenience and cost. When a merchant offers credit card payment or cash, oftentimes customers will choose credit card or debit card because it is convenient and costs no more than when paying with cash. The credit card issuer may even be offering a perk to provide incentive to ...


1

The value of bitcoin is created by demand and offer by the need of market. If you want deeper estimation let assume two hypothetical examples: Hypothesis 1: * All people in USA has equal savings and all savings are in BC. BC is used only in USA * Average Savings Amount for Americans is 3,800$. * USA population is 317,161,000 Because the number of ...


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