The introduction of crypto in 2009 has proven to be a highly attractive investment over the last decade. Over the years, the coin has received value from close to less than a dollar to $64,000 in mid April 2021. After the release of Bitcoin, several other cryptocurrencies came into existence to take the benefits brought by BTC. These alternate coins were called Altcoins. In this article, we are going to do a comparison of Bitcoin vs Altcoins.
Any investor who has made their investment in Bitcoin since 2009 can assert that they have made extreme profits over the years. When considering the latest Bitcoin market bull run, it can be clearly stated that BTC is an excellent and reliable investment option. Because BTC created a mark on the financial market, it was easy for the alternate cryptos to enter and survive and hence today we see many altcoins. The list of altcoins includes Ethereum, Litecoin, Solana, etc thrive. But are these two (Bitcoin and Altcoin) the same? In this comparison of Bitcoin vs Altcoins, we will find this answer.
Bitcoin Vs Altcoins: An Overview
Even though both share the same responsibility, there is still the question of which is more attractive now going forward. Should you invest in BTC, or should you think of investing in altcoins? This guide will evaluate the investment prospects of both altcoins and Bitcoin to determine which is more lucrative. So in this Bitcoin vs Altcoins, let us start with knowing about each in detail.
When evaluating or comparing the prospects of investing in digital currencies, we are needed to evaluate their potential to make returns. So which between BTC and its alternative cryptos has better prospects?
At release in 2009, BTC had a minimum value below the cent line. However, since then, the coin started making tremendous increases in prices, doubling, tripling, and also quadrupling in value in just a short span of time. In fact, at some point, BTC created profits of more than 1000 percent during the first years of its existence.
The ability of BTC to make returns at that point was very high as the value of the coin was still scanty, while the space for the price rise was still extensive. What about now?
Presently, the value of a BTC is very high, with the all-time high standing at a little more than $64 thousand. Even though it is possible, it is still implausible that the value of Bitcoin would increase at huge rates as the ones witnessed in its earlier years of existence. Can you imagine the value of Bitcoin standing at $64k presently, rising by 1000%?
BTC can still earn profits, and it can still double, triple, or even quadruple in value; hence, it is a good asset. However, a rise in BTC values can be seen over months or years, not just in a short time. What about altcoins?
Now coming to the question of what are altcoins? Before we get into Bitcoin vs Altcoins, let us have a look at the fact that can altcoins generate a substantial amount of profit more than Bitcoin? Many alternate cryptos have been seen to create great returns in the last few years. Among them to name a few are Ethereum, Ripple, Maidsafe, Dash, Name, and many more. Some among them such as Dash and Ethereum have made great profits of more than 2900 percent with others hitting even 4900 percent such as NEM. As Ethereum is the next popular crypto Bitcoin, many ask is ethereum an altcoin. To answer them, yes, Ethereum is an altcoin.
The statistical evaluation of the top altcoins portrays that even though they are relatively lower in value, their returns are incredibly high. So why are these assets a better choice when it comes to investment?
Most of the values of altcoins are still very low, with some coins trading at below $5. Cardano for example is an excellent asset for investments. This crypto trades at $1.16. Hence, it is convenient for Cardano to raise the prices by 100 percent in comparison to Bitcoin. The investors of Cardano can consequently bring more returns in comparison to average BTC holders at this point.
It performed some analysis to see how well-doing BTC would be in comparison to investing in altcoins. For instance, if an investor puts $10k in BTC and $1k in each of the ten best performing altcoins, the altcoin investor will earn much more income in comparison to the Bitcoin investor. BTC would make an average of $96000, while the investment in altcoins would make a total return of $194k, inclusive of the initial capital. The best cryptocurrency to invest 2022 is Solana.
Bitcoin Vs Altcoins: Other Things To Consider
Now that you have got some ideas on Bitcoin vs Altcoins, let us see some more things to consider. However, there are other factors that investors consider before making investments in either BTC or altcoin. Among the issues include;
- Risks associated with investments – Both BTC and altcoins have high risks associated with investing in them. The regulatory space is unfriendly to both altcoins and BTC. However, because of its fame, BTC is at a bigger risk of manipulations and scams.
- Efficiency – When it is about efficiency, network scalability and transaction speed are among the things to be taken into account. However, it can clearly say that BTC is not effective, considering the price of mining, low-speed transactions, and many more.
- Reputation – Another thing to take into account is the reputation of the investment asset. BTC is a more reputable coin in comparison to any other investment coin in the crypto space today. Still today the best cryptocurrency to buy today is Bitcoin.
After this Bitcoin vs Altcoins and after evaluating the investment dimensions of crypto assets with the help of the Bitcoin vs altcoins chart, it is pretty evident that investing in altcoins is more attractive in comparison to Bitcoin presently. Bitcoin is truly the highest priced and most reputable crypto asset presently. However, any BTC investment might not assure huge returns when compared to altcoins.
This guide has considered statistical analysis of varied sources, portraying that investing in altcoins is a better investment choice in comparison to investing in BTC. This is because altcoins have a larger chance of increasing in value in comparison to Bitcoin and, as such, can formulate more income.