The only reason alternative cryptocurrencies exist is because people have perceived multiple flaws in Bitcoin and they think they can do things better.
Therefore the implicit mission for all altcoins must be to make a product that is better than Bitcoin. Can this be done? From a technical standpoint it seems highly likely. From a usage and marketing standpoint, the answer is not quite as clear. Right now Bitcoin has a huge head start when it comes to the amount of people who support and use the virtual currency. Institutional investments have been made to ensure the growth continues. Dedicated teams are working on every aspect of Bitcoin adoption and BTC gets a lot of press coverage. Since they were first they will always have an innate advantage over other cryptos that try to achieve widespread acclaim. That’s not to say it can’t be done, but it will be a big challenge for any alternative to gain traction on a global scale. Right now altcoins seem to be mainly the realm of a small subset of cryptocoin adventurers and get rich quick scam artists. Yes, there is some innovation going on. Yes, there are dedicated teams building long-term projects with an eye toward success.
It’s conceivable that one or more of these projects will become a household name. It’s going to be an uphill battle and it will take serious belief on the part of many to see the dream through to its conclusion. The Battle For Payment Processing Is FiercePayment processing is a huge, global business. Any payment processing solution used by the masses will have to be fast and secure. Not only that, it must be placed into widespread usage to the point where people can use it to purchase what they want when they want. Alternative payment options can certainly grow rapidly online. One only needs to take a look at PayPal and their history to see that. A new payment system needs to be as open as possible, in order to encourage many participants to use it regularly. Bitcoin has certainly been catching on in that respect. Alternatives to Bitcoin will need to catch up and then exceed the reach that Bitcoin has already achieved. This is the area that seems out of reach for most altcoins at this current stage of the game. Most altcoins have relatively small numbers of supporters, small teams, and non-existent marketing campaigns. Even if they built technology that was 10 times better than BTC, they will still have to convince the public to use their currency. That’s the biggest challenge facing all altcoins. 2014 Has Been A Good Year For AltcoinsDespite all the scams and scandals 2014 has seen a lot of progress made on the altcoin front. Coin Devs are experimenting with all different sorts of concepts that may or not become commonly accepted. This effort towards innovation is the most important element that any altcoin team can offer. Experimentation is the only way to improve the underlying technology of altcoins. Sure, much of it will flop. But a few ‘gems‘ will be discovered that really could push the whole movement forward. At the current rate it seems likely that strong altcoins will emerge.
The environment is competitive and the feedback is instant and harsh. Out of this idea lab revolutionary thought is likely to emerge. Like any revolution, new altcoins with new ideas will face a lot of adversity, especially emanating from those already in power. The coin projects that ignore the criticism and keep on improving their currency are the ones that will pull away from the pack. Thanks for stopping by and reading! If you have any comments leave them below.