Bitcoin has not just been a trendsetter, ushering in a wave of cryptocurrencies built on a decentralized peer-to-peer network, it's become the de facto standard for cryptocurrencies, inspiring an ever-growing legion of followers and spinoffs.
Bitcoin alternative
KEY TAKEAWAYS
- A cryptocurrency, broadly defined, is currency that takes the form of tokens or "coins" and exists on a distributed and decentralized ledger.
- Beyond that, the field of cryptocurrencies has expanded dramatically since Bitcoin was launched over a decade ago, and the next great digital token may be released tomorrow.
- Bitcoin continues to lead the pack of cryptocurrencies in terms of market capitalization, user base, and popularity.
- Other virtual currencies such as Ethereum are being used to create decentralized financial systems for those without access to traditional financial products.
- Some altcoins are being endorsed as they have newer features than Bitcoin, such as the ability to handle more transactions per second or use different consensus algorithms like proof-of-stake.
What Are Cryptocurrencies?
Before we take a closer look at some of these alternatives to Bitcoin, let's step back and briefly examine what we mean by terms like cryptocurrency and altcoin. A cryptocurrency, broadly defined, is virtual or digital money which takes the form of tokens or "coins." While some cryptocurrencies have ventured into the physical world with credit cards or other projects, the large majority remain entirely intangible.
