In 2009, Bitcoin was the first cryptocurrency being introduced. Bitcoin investors who bought in June of 2011 at $11 per bitcoin (BTC). For example, experienced a whopping annualized return of almost 100% as of June 2020. Here we will talk bitcoin versus alt coins based on the balance.
On the other hand, investors who bought at the end of 2017. Especially at $19,283 per BTC had lost 49% of their original investment as of June 2020.
Alt coin is competitor for Bitcoin
As Bitcoin spread, alt coins arose as competitive options. Litecoin was introduced in 2011, touting faster transaction times and enhanced technology. Etherium is the second-largest cryptocurrency behind Bitcoin.5 It has gained popularity because it has a suite of financial products for banking and e-commerce.
Based on the balance, cryptocurrency is still a market of “lions and mice.” Bitcoin’s nearest competitor has a market share of about 13% versus Bitcoin’s nearly 60%.
As for traditional investments, most have value that is measured by an underlying asset, like a company or property, a loan obligation, or an index like the S&P 500. But cryptocurrency does not.
Cryptocurrency prices are typically more volatile than other, more traditional investments like stocks, bonds, and real estate.
Instead, as with any traditional currency, cryptocurrency’s value is based on how widely it is accepted. According to a survey by specialist business insurer and risk management firm HSB, 36% of U.S. Small and medium businesses accept cryptocurrency. An additional 59% of those companies purchased digital currency for their own use, as well.
Cryptocurrency is attractive to some investors for portfolio diversification because the prices are not correlated to the prices of other assets they may hold, such as stocks, bonds, or real estate.
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