Why Most Altcoins Are Designed To Fail

There are over 250 different cryptocurrencies available to use today. However, the sad reality is that 90% of these are going absolutely nowhere. 90% of these are going to fail, eventually cease to be used completely. 90% of these are set to fail before they are even launched. Why?

Well, before we can know that, we have to look at what it takes for a coin to be successful.

Bitcoin, Litecoin, and Dogecoin all have one thing in common: They are widely accepted. People know about these coins. Vendors accept these coins – they can be spent on actual things. This provides value. Additionally, with the excpetion of Dogecoin, Bitcoin and Litecoin were both completely unique at the time they were released.

Litecoin is open source, which is both a blessing and a curse. While it gives people the opportunity to build on and improve the coin, it also gives people the opportunity to create direct clones. In fact, the majority of altcoins on the market today are exactly that – direct clones of Litecoin with only the name and logo changed.

You have to ask yourself, what is the value of this? A new coin starting out with no new features offers absolutely no value to its users. Why use some random altcoin that provides nothing new over something like Litecoin that is already widely accepted? There really isn’t any valid reason.

If your coin offers nothing new, there is no reason to use it. Period. And as we know, it’s the community behind the coin that gives it value.

Bring something new to the table, and the cryptocurrency community will begin taking it seriously. Improve upon the already existing coins, and maybe people will begin using it. Maybe it will become a success.

What About Dogecoin?

The only exception to this rule thus far has been with Dogecoin. Tech-wise, Dogecoin didn’t bring anything new to the table. Like most other altcoins, it too is a clone of Litecoin. However, it did bring something new in – a new type of community. Dogecoin is silly, and that’s exactly what made so many people adopt it. The community behind the coin is fantastic, often very nice and welcoming to new cryptocurrency users. The idea¬†behind Dogecoin is what turned it into a success.

But could this happen again? It’s not very likely. Other altcoins such as Mooncoin have already attempted to do so, and failed drastically.

Today, the only way to compete is to improve upon Bitcoin or Litecoin. Unless a miracle happens, any more Litecoin clones are destined to fail.

What is your view on altcoins?

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Comments

  1. I disagree, a good coin even if it is similar to bitcoin/litecoin certainly can still succeed. There are plenty of coins with newer features but people are not really too interested in that. They want something that is well known and trusted. You want a good active developer who supports the coin, a good name for the coin and some way to promote and get people’s interest.

    The coin I have created (UltimateCoin) meets this criteria. I actively support the coin, I run successful promotions for the coin and there are loyal people who support the coin also.

    Avoid coins that claim to be anything other than monetary units, they are just trying to get an angle such as Water coin, various charity coins, gamer coin etc.

    • James McAllister says:

      While you do make some great points, I think it’s important that you look at the big picture. Think about what it means to be a currency. The main purpose of any currency is to provide a convenient medium of exchange. A currency can be spent on things.

      Right now, not even Litecoin has a lot of acceptance from vendors, and Bitcoin is only just beginning to come globally accepted. When new vendors and new people come into the cryptocurrency market, they’re not going to accept someothing like Fedoracoin or Suncoin, they’re going to accept what people already use, what will make THEM money. Right now, that’s only Bitcoin. Litecoin will be next for general day to day use. Unless an altcoin becomes more popular than Litecoin is when that time comes, there would be absolutely no reason to accept a coin that offers no advantage over what’s already popular.

      Altcoins do have their uses, but it’s a niche market. As far as wide acceptance and day to day spending, the only true contenders right now are Bitcoin and Litecoin.

      Thank you for stopping by and leaving a comment. I always love to hear other people’s input.

      - James McAllister

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