Bitcoin vs. Altcoins

By johnwege | johnwege | 20 May 2024


The never-ending question in the cryptocurrency market is whether you should buy Bitcoin or altcoins. This question has been hotly debated for years with no end in sight. Depending on if you make the correct decision, fortunes can be made or lost. The only problem is that there is no easy answer. Supporters on both sides are unwavering in their conviction and won’t budge an inch.

However, today we will be attempting to dig into the biggest question in crypto, and try to come out with an answer. 

(Also for the purposes of this article, there are only two cryptocurrencies that I don’t consider altcoins; Bitcoin and Ethereum.)

The Case For Bitcoin

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Simply put, when it comes to cryptocurrency, Bitcoin reigns supreme. It was the original cryptocurrency, and responsible for this entire market existing. Since it has been around the longest, this also means that it has been tested the most. Each time it has faced FUD or attacks, it has come back stronger. If there is one thing you can say about Bitcoin, it’s that it is very resilient. 

Because it has been around the longest and is still on top in terms of market cap with no signs of slowing down. It is perhaps the only safe bet to still ten years from now and beyond. People sometimes forget just how risky the cryptocurrency market is. Being comparable to betting your financial future on a lottery ticket. Something that has a decent chance of going to zero in the future. Buying altcoins amplifies that risk substantially. While Bitocin on the other hand is considered ultra-conservative in this market. Yet an ultra-conservative cryptocurrency is still risky.

Beyond the core principles of Bitcoin that make it great such as the max supply being 21 million, halvings every 4 years, being the most decentralized and secure blockchain and the list goes. However, in my opinion, the most important thing is how Bitcoin was created.

The truth is that Bitcoin is the only cryptocurrency to obtain real value naturally. Its price was zero for multiple years before it began to accrue value naturally. It wasn’t sold or traded for anything of value during its launch. It was a free-for-all to begin mining and obtaining Bitcoin. Finally, its creator Satoshi never touched his Bitcoin earned from mining, and walked away from Bitcoin. This is crucial for its demand in the future and ability to survive. It is often compared to being digital gold. This is the only crypto ever to be compared to gold.

The Case For Altcoins

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When it comes to altcoins, no one would claim that it is a better buy than Bitcoin in the sense of risk value, and being a safe bet. However, people who buy altcoins usually have one thing in common; they feel that they missed their chance with Bitcoin and Ethereum. They feel that altcoins are their one chance to get ahead.

In a sense, they aren’t wrong. There is no denying that there is much more risk when buying altcoins, clearly evident by how several dropped by 95%-99% in value during the most recent bear cycle. But, they also have much more potential to appreciate in value.

During the last cycle, from Bitcoin’s bottom up to its all-time high, the price went up by nearly 20x. With altcoins, there were several that did 100x, or even 500x. If you are able to time the market well, fortunes can be made.

Another key benefit that many altcoins have over Bitcoin is the ability to earn a passive income through staking. By staking some of the higher profile altcoins such as Solana, Polkadot, Cosmos, Polygon, and others, you can often early 5%-15%+ passive income. These high-interest rates allow you to accumulate and build your portfolio at a much faster pace than you might be able to with Bitcoin.

Finally, with altcoins, there are never-ending opportunities. Technology and development are moving at lightning-quick speeds in this market, and that means that there are always new projects to be researching and investing in. All it takes to make a fortune in this market is to get lucky by investing in one altcoin that takes off in value.

The Final Verdict

As for me, I prefer to stick to buying Bitcoin.

The cryptocurrency market is already risky enough, so I try to minimize my risk by investing in blue-chip cryptocurrencies. While the quick gains of altcoins can be very tempting after they crash many of them never recover. The harsh truth is that after an altcoin's first cycle, nearly all of them never make a new all-time high when compared to Bitcoin. Meaning that they eventually trend to zero.

You would just be better off buying Bitcoin. At the end of the day, the name of the game in the cryptocurrency market is to accumulate as much Bitcoin as you possibly can. All the rest is just noise and a distraction. Accumulate wisely.

How about you? Which do you prefer, Bitcoin or altcoins?

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