21:18What Bitcoin differs from other crypto currency
What Bitcoin differs from other crypto currency
In this article I will try to tell you how and why Bitcoin differs from all existing altkones.
How people develop their understanding of Bitcoin
Having been involved in Bitcoin for a long time, I noticed a pattern according to which people's minds about Bitcoin change, as they eventually sink deeper and deeper into its ecosystem, gaining more and more understanding of its essence. Usually their thoughts develop like this:
Wow, Bitcoin is terrific! There is a limit to issue bitcoins, and control over my own funds is almost entirely in my hands. How do I get a few bitcoyons?
Mining is really cool. It's like making your own money. How do I acquire a miner and start to stamp bikoyony?
Mining looks very difficult and difficult. I think it's better if I just buy bitkoyny. Where can I do this?
Great, now I have bitkoyny, but what kind of other coins are these? Will they ever take off?
I want to somehow hedge against Bitcoin's risks. Maybe I should buy some of these altkones.
I can not understand every altokune, there are too many of them. How do I choose?
I know, I'll just buy the most popular ones, since they probably will have a chance to beat Bitcoin.
Hmm, but the popular ones look pretty expensive. Perhaps I will buy some of these others that just appeared.
Many people stop at one of the listed stages, without moving further. For example, I know many people who never bought Bitcoin: they just lured all the bitkoy that they have. They will gladly spend thousands of dollars on equipment for mining, but they will never buy bitcoins on stock exchanges. There are others who have stopped the stage of getting . Others are hedged by almost every known altcoyin. The main thing that I want to say is that such an algorithm for maximizing the benefits of this innovation is quite predictable, but different people believe in different things.
Why people buy Alcohol
Basically, people buy altkones as an asset-hedge against Bitcoin. Here are some common reasons why people can hedge with the help of altkones:
Bitkoyn can comprehend some catastrophe, which does not affect the altokones.
Altokiny can have some usefulness in the future, which will be much higher than that of Bitcoin, which will allow the Altkoks to overtake Bitcoin.
Even if Bitcoin will still remain the most valuable crypto currency, there may well be a niche for the Altokemon, and, consequently, this may be a good bet.
Let's take a closer look at each of the reasons.
There are several potential scenarios in which Bitcoin can die catastrophically. The first will be a technical defect (for example, an error that would allow someone to steal coins). The second scenario is an economic defect (say, a code change, which for some reason instantly transfers 10 million coins to any entity or company). The third scenario is a consensual defect (for example, Bitcoin splits into two roughly equal forks).
A technical defect can be something of a vulnerability in the cryptography used by the Bitcoin protocol, or some security vulnerability in consensus code that could be used. Cryptographic vulnerability (for example, a clever attack on a particular elliptical curve used in Bitcoin) will naturally extend to many other coins, since many of them use the same cryptographic libraries. Vulnerability in security, of course, will also extend to many other coins, because they use the same program code.
Whatever it is, you need to ask yourself what will be the consequences if something like this happens? First, if the vulnerability is detected quickly enough, Bitcoyne is likely to be fixed and, possibly, will be forced to isolate the vulnerability. In fact, something like this has happened before, and it was the fork that was the community's response to such a threat.
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