When people start investing in Bitcoin, many wonder whether other cryptocurrencies, also known as altcoins, are worth considering. Competing narratives will try to pull you toward or away from Bitcoin.
There are many ways to compare Bitcoin with other cryptocurrencies, which makes this process confusing. Most comparisons focus on technology and use that as the main argument for why a given altcoin might be a better investment.
For example, Bitcoin can only handle around 10 transactions per second, while some altcoins claim they can handle hundreds of thousands. They might also argue that Bitcoin cannot run smart contracts, and other blockchains do it better.
In this article, we will explore why there is more to consider than raw tech specifications and why a technology-only lens can be misleading. Instead, we will compare Bitcoin and altcoins from a monetary perspective and explain why Bitcoin stands apart.
The Origins of Bitcoin
To understand Bitcoin's uniqueness and widespread adoption, it is first necessary to know its origin.
People often say Bitcoin is the first cryptocurrency, but that is not quite accurate. It is the first one that worked. Many earlier attempts to create digital money failed for different reasons.
This story begins with the cypherpunks, a community of digital idealists who believed that the internet could become the infrastructure of a freer world. To achieve this vision, they realized they needed a monetary system independent of governments and banks..
Throughout the 1990s and early 2000s, several attempts were made, but none succeeded in practice:
DigiCash / eCash (David Chaum, 1990s)
Bank-integrated electronic cash using blinded signatures. It never reached scale, and the company shut down after losing key banking partners.
e-gold (1996–2009)
Gold-backed digital balances run by a private operator. Centralization and legal exposure led to enforcement actions and shutdown.
b-money (Wei Dai, 1998; proposal)
A blueprint for anonymous, distributed electronic cash that influenced Bitcoin. It was never implemented as a live network.
It was not until 2009 that Satoshi Nakamoto introduced Bitcoin and made the design work in the real world.
Independent, decentralized internet money was finally born.
The Origins of Altcoins
Once Bitcoin was invented, thousands of alternatives emerged. Here is a simplified overview of key phases:
Early Experiments (2011–2014)
Altcoins mostly mirrored Bitcoin with small parameter changes.
Examples include Namecoin (decentralized naming), Litecoin (faster blocktime), Peercoin (early proof-of-stake), Dash, and Monero (privacy).
Proto-token layers on Bitcoin
Mastercoin/Omni (2013) and Counterparty (2014) allowed token issuance on top of Bitcoin, precursors to modern token platforms.
Platform Shift (2015–2017)
Ethereum introduced general-purpose smart contracts, enabling programmable tokens and on-chain applications.
ICO Phase (2016–2018)
The ERC-20 standard made token creation simple. Thousands of projects raised funds through initial coin offerings. Innovation accelerated, but scams and regulatory pushback were common.
Maturing Categories (2018–2021)
DeFi, automated market makers, and new layer-1 and layer-2 chains emerged. NFTs introduced collectible and identity-based assets. However, retail buyers lost most of their investment value in those NFTs and tokens.
Meme Coin Phase (2023–present)
It was driven by social virality and low-friction launches. Tokens such as PEPE, BONK, and WIF gained traction through cultural speculation rather than utility.
While entertaining, these tokens generally have no fundamental monetary value.
What’s Next?
Fifteen years later, narratives promising “the next Bitcoin” have come and gone. Through every cycle, Bitcoin has stayed focused on its mission and grown to become one of the most valuable assets by market capitalization, surpassing many of the world’s largest corporations.
But why did all these attempts to beat Bitcoin fail? Why did Bitcoin remain so strong?
Monetary Properties: Bitcoin vs other cryptocurrencies
Lindy Effect vs Trends
The longer a technology survives, the longer it is expected to survive. Bitcoin has operated for more than fifteen years with transparent rules, deep liquidity, and resilience against shocks. Its track record compounds trust. Most altcoins are newer, change rapidly, or disappear entirely.
Decentralization vs Centralization
Bitcoin is built for broad, permissionless participation. Anyone can run a node, the rules change rarely, and there is no controlling organization. Many altcoins rely on a small group of validators or a governing foundation. These networks can move quickly, but if you disagree with their changes, your node becomes incompatible (hardfork). That weakens neutrality.
Fixed 21 Million vs Unstable Monetary Rules
Bitcoin’s supply is capped at 21 million, with a public and predictable issuance schedule. No committee or company can change this. Many altcoins have modified their monetary policies over time. The issue is not the total number of coins, but that insiders have the power to change it. That makes weaker money.
Layered Scaling vs On-Chain Everything
Bitcoin recognized early that global scale should come from layers, not from putting every transaction on the base chain. For example, the Lightning Network accelerates payments without burdening the base layer. Many altcoins perform most of their activity directly on the blockchain, which increases hardware requirements and makes decentralization costly.
Proof of Work vs Proof of Stake
Bitcoin uses a proof-of-work system, which requires real-world energy consumption to propose an update to the blockchain’s transaction history. Attacking the network requires continuous expenditure, which anchors its resistance to censorship. Although proof of stake can be efficient, it ties control to wealth and social processes. In monetary networks, neutrality matters. This is particularly true over long periods of time.
Satoshi Nakamoto vs Insider Allocations
Bitcoin launched without a premine, venture allocation, or company. Coins were earned openly. Satoshi left the project, removing the founder's influence. Many altcoins launch with insider allocations, early unlock schedules, or incentive structures that benefit those early in the curve. At worst, investors become victims of rug pulls and exit scams.
What Does This Mean in Practice?
These monetary properties lead to greater trust in Bitcoin as an asset, and the market reflects that. Bitcoin consistently holds the largest market share and market capitalization of all cryptocurrencies.
Conclusion
Bitcoin is unique among cryptocurrencies for all the reasons above. It remains the first and only truly decentralized digital monetary network.
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