What is an Altcoin? An Introduction to the Diverse World of Cryptocurrency
In the evolution of cryptocurrency, Bitcoin was the pioneer, but it is by no means the only player. Since the inception of Bitcoin in 2009, over 16,500 digital currencies have emerged. These non-Bitcoin digital assets are collectively known as "Altcoins," an abbreviation of "Alternative Coins."
The concept of Altcoins is straightforward: just as we need different types of vehicles to meet various needs, Altcoins are created to address Bitcoin's limitations or to offer additional functionalities. For example, the first Altcoin, Litecoin, was introduced in 2011 with the primary goal of speeding up transaction processing times.
In the current crypto ecosystem, Bitcoin accounts for about 50% of the market capitalization, while Altcoins share the remaining 50%, which clearly demonstrates the indispensable role of Altcoins in the digital economy.