Why Altcoins Matter: Beyond Bitcoin in the Crypto Space
Remember we said in our post "Shaping the Future in 2025" that we’d occasionally share some side projects? Well, today is the day we deliver on that promise for the very first time.
A friend recently asked me for advice on which cryptocurrencies they should invest in. That got me thinking: why not write about something a bit different for this post? So here we are, diving into the world of altcoins.
Why altcoins? Well, because Bitcoin has been hogging the spotlight for years. Let’s face it: if you’re here, you probably already know what Bitcoin is. But since my friend is already knee-deep in Bitcoin, I figured we could shake things up and talk about altcoins instead. For once, we’re stepping off the beaten path and not leading with Bitcoin. Hopefully, you’ll forgive us for this little detour—and while you’re at it, hit subscribe so you don’t miss our future post on Bitcoin!
First, a quick disclaimer: I’m not here to play the role of fortune teller. If you’re hoping for a magical list of coins guaranteed to make you rich, I promise you will be disappointed. Any coins I mention are purely for illustration and not investment advice. Got it? Great. Let’s move on.
But let’s not get ahead of ourselves. Skipping Bitcoin this time doesn’t mean we’re always going to leap ahead. Before we dive into the altcoin space, let’s talk about what crypto actually is—because, let’s face it, these digital coins are a lot more complex than they seem.
Crypto For Dummies
When you buy cryptocurrencies, you’re essentially becoming part of a network—and in crypto, these are blockchain networks. To explain "blockchain networks," let’s break it down into two parts.
First, let’s talk about networks. Think of a network as a dynamic ecosystem where different entities—whether devices, people, or organizations—are interconnected. They collaborate, share information, exchange resources, and provide services to one another. All of this happens based on a set of rules and agreements (the protocols) and with the help of a strong foundation (the infrastructure) that ensures everything runs smoothly.
Now, blockchain technology provides the protocols and infrastructure that keep these networks running. It may sound complicated, but let me simplify it with a little story about the village of Blockhaven.
A Day in the Life of Blockhaven
In the village (or system) of Blockhaven, everyone gathers daily in the town square to discuss transactions. This is a special place because every so often, everyone comes together to record all the village’s transactions in their own ledgers.
When John says he gave Peter 10 euros, the villagers check whether John indeed had enough money to carry out the transaction. Only when everyone agrees, do they write the transaction in their ledgers. This process highlights transparency: everyone can see what happens and verify the data’s accuracy.
Once the transaction is recorded, the villagers use a special seal to lock it into their ledgers. This seal ensures that no one can alter the transaction later without the entire village noticing. This demonstrates immutability: once something is recorded, it’s there to stay.
Now imagine someone loses their ledger. No problem! Since everyone has a copy of the same ledger, nothing is lost. Additionally, each ledger is protected by a unique lock that only the owner can open. This makes the system extremely secure, without a central authority overseeing the villagers. Even if someone tries to cheat, the rest of the village would immediately notice and correct it.
Congrats, you now understand the basics of cryptonetworks. Now you might be wondering: what role do cryptocurrencies play in these networks? Well, think of it this way—just as fiat money acts as a reward for participation in a capitalist economy like the USA, cryptocurrencies serve as rewards in blockchain systems like Bitcoin. They’re designed to incentivize and reward those who help secure and maintain the network.
But that’s not all. Cryptocurrencies can also function as a medium of exchange for transactions, much like USD or other fiat currencies. However, here’s where crypto is unique: owning cryptocurrency also means owning a stake in the network itself. As the network grows and sees more use, its overall value increases—and so does the value of the coins. It’s this dual purpose—both as a reward and a Store of Value in the network—that makes cryptocurrencies so fascinating.
Now that we’ve got the basics down, let’s get to the fun part: Altcoins. What are they, and why should you care? Let’s break it down.
Altcoins—short for alternative coins—are the not-Bitcoins of the crypto world. They exist to improve on Bitcoin’s shortcomings or explore brand-new possibilities. Broadly speaking, altcoins fall into two camps:
They want to be better than Bitcoin by upgrading the network’s infrastructure or protocols.
The crypto space is a playground for IT geniuses itching to innovate. Altcoins are often their pet projects, and some of them are downright brilliant.
In the next section, we’ll dive deeper into these categories and see what makes altcoins so intriguing.
Improving Bitcoin
The first wave of altcoins after Bitcoin came about for one simple reason: Bitcoin wasn’t perfect. Like most first-generation tech, it was a great start but left plenty of room for improvement. Remember the clunky mobile phones from the 90s? The ones that looked like bricks? Bitcoin was kind of like that.
Crypto for (D)apps
Take Bitcoin’s functionality. It’s decent for what it is—you can trade it, though not super efficiently (more on that later). Its big win is its reputation as a Store of Value. But let’s be honest, compared to the vast possibilities of the internet, Bitcoin’s capabilities are a bit... underwhelming. Enter Ethereum, a network that positions itself as a versatile platform. Unlike Bitcoin, Ethereum is capable of much more. You can build apps on it, such as games like CryptoKitties, where players can breed and trade unique digital cats —no judgment if that’s your thing. Another category of apps on the Ethereum network has even created an entirely new sector: DeFi, or decentralized finance. Think of all the services a bank offers—only without the bank. Whether this is a healthy evolution for finance is a topic for another day.
The digital currency
Another significant limitation of Bitcoin is its slow transaction processing. The Bitcoin network can handle a maximum of seven transactions per second. To put it mildly, that’s a problem if people want to use Bitcoin as an accessible payment method. Compare that to credit card companies, which can process over 60,000 transactions per second. Clearly, Bitcoin’s claim to be the "digital cash" of the future doesn’t hold up. Enter Solana, a network capable of theoretically processing 65,000 transactions per second. I say "theoretically" because Solana has had its share of growing pains, including occasional outages when overwhelmed by high transaction volumes. Still, the network has shown improvements and achieved a peak of over 10 billion transactions in December 2024. Not too shabby, right? But still far away from Visa, with estimates of 750 million transactions a day.
Honorable mentions
These are currently the two biggest altcoins that have successfully addressed Bitcoin’s shortcomings. That said, there are plenty of other promising projects in the works. Take SUI, for example, which has the potential to become a major player in the realm of fast and low-cost transactions. Its focus on efficiency makes it a strong contender in industries demanding high-speed, low-expense solutions like for example e-commerce.
Finally, let me give a final honorable mention to Avalanche. Avalanche allows users to build subnets, each of which can operate with its own protocols. Think of it like Microsoft: they have a gaming division, but they also have separate divisions for cloud computing and for Office tools like Excel, Word, and PowerPoint. Similarly, Avalanche enables different sectors to operate under one umbrella, each with its unique purpose, rules and structure. Pretty neat, right?
Crypto’s Creative Trailblazers
Let’s wrap this up by taking a closer look at some coins that didn’t set out to compete with Bitcoin but instead carved their own paths for entirely different purposes. Spoiler alert: these coins have some pretty interesting use cases.
First up, we’ve got the coins from crypto exchanges. Think of them as the frequent flyer miles of the crypto world. Coins like CRO (from Crypto.com), and BNB (from Binance) offer perks like discounted trading fees, staking rewards, and even access to exclusive features. It’s like a VIP pass, but for crypto enthusiasts.
And while we’re here, let’s not forget stablecoins like USDC, often used alongside these platforms to maintain value stability and smooth out the volatility rollercoaster of other cryptocurrencies. But that’s not all! USDC is also frequently used on betting platforms like Polymarket, where its stability makes it an ideal choice for managing wagers.
And finally, we’ve got coins that are all about connecting people. Take TON Coin, for example, which emerged from the depths of Telegram’s ecosystem. It’s all about creating a seamless experience for payments and interactions within social platforms. Imagine tipping your favorite meme creator with crypto—it’s like a "like" but with real value.
These coins show that not all crypto is trying to be Bitcoin 2.0. Some are just here to solve specific problems or make niche experiences better. And honestly, isn’t that what innovation is all about?
Closing Remarks
In a world where Bitcoin often takes center stage, it’s clear that altcoins are no mere supporting cast. They innovate, adapt, and redefine what’s possible in the crypto space. From the lightning-fast transactions of Solana to the all-purpose platform that is Ethereum, and niche coins like SUI and TON paving the way for specific use cases, each one brings its own flavor to the mix. This diversity is what makes the crypto ecosystem so exciting—it’s not about one-size-fits-all solutions but a collection of ideas tackling various challenges. And that’s the kind of future we love to keep an eye on.
We hope this article has sparked your curiosity about altcoins and given you a clearer picture of their role in the ever-evolving crypto landscape. But let’s be real—this isn’t the full story. Think of it as a starting point, a friendly intro rather than an all-encompassing guide. There’s always more to uncover, so go ahead, dig deeper, and explore. Because the best way to make sense of crypto? Dive in and see if it clicks for you.
See you Sunday!
