We know what is bitcoin and what is cryptocurrency. Although bitcoin is a cryptocurrency itself. So what are the exact difference between bitcoin and cryptocurrency ? Let’s understand it point by point simply with a comparison table.
|1. Bitcoin is the first cryptocurrency that based on blockchain technology.||1. All the cryptocurrency other than Bitcoin known as Alt coin ( Alternate Coins ).|
|2. It was invented to make payment transactions but it’s highly volatile nature according to price and more transaction validation time makes it uneasy to do so.||2. Many other crypto currency has less transaction validation time and some stable coins overcome the issue of volatile price.|
|3. Bitcoin has the biggest market cap and so much popular.||3. All the other cryptocurrency together market cap is less than bitcoin’s market cap.|
|4. It promote anonymity. It has public leger but in which buyer and seller identity does not reveal.||4. Many of Alt Coin promote transparency which helps payment transaction trustworthy.|
|5. Many big companies like Tesla, Whole foods and PayPal started to accept payment in Bitcoin.||5. There are many different usage of Alt coins but it is not acceptable as payment yet.|
What is a Bitcoin
- From all the lengthy list of Cryptocurrency, Bitcoin is like a King ! It is the first cryptocurrency founded in the year 2009 using blockchain technology.
- Bitcoin was invented as a decentralized currency to make payment transactions. Though it’s highly volatile price and lazy validation time consuming process doesn’t make it easy.
- However it is very popular among the people for investing. It gave return on investment more than any asset class. No doubt it has the largest market cap in cryptocurrency. It’s limited supply makes it rare and popular.
- Satoshi Nakamoto has inspired to make this currency from it’s decentralized approach. Because of that it keep the information of buyer and seller secret. Which can be use for illegal activates or frauds. Although it has public leger available but it just shows random number which is difficult to understand.
- Apart from that, it has the first mover advantage that made it so popular. Bitcoin is the one currency today which can accepted as a payment from global giant companies like Tesla, Whole foods and PayPal. May of other is thinking on that too.
What is Cryptocurrency
- Cryptocurrency are made on the blockchain technology. All other cryptocurrency other than the Bitcoin is known as Alt Coin. This term came from Alternate Coin or options other than Bitcoin.
- As most of the cryptocurrency made for the purpose of using it as a payment. Some crypto currency has lesser validation time while payment transaction which overcome the disadvantage of bitcoin.
- High volatile price of bitcoin makes it difficult in payment transaction. So, there are some cryptocurrency with price association with fiat currency and make the price of currency more of stable. For example, Tether, True USD, USD Coin, Binance USD. They are all related to US Dollar.
- However Alt Coins have so many advantages, all the crypto coins together has less market cap than bitcoin.
- Cryptocurrency mining is same as bitcoin, some needs more calculation and large computer work and some need just mobile. Recently launched Pi network was compatible in mining Pi coins with using mobile.
- There are many cryptocurrency which gives payment transparency with the advantages of blockchain technology which is very useful in banking sector.
- Although there are many more usage of Alt coins. For example, Ether is using in buy NFTs. Doge coin was a meme currency which was initially use for a reward point in reddit. Some coins use in gaming industry as well.
You can buy it from various applications like Binance Coin, Coinbase, Nexo, Kucoin or Gemini.
For India, it is good to buy from WazirX , CoinSwitch or Coin DCX.
There is no any specific parameters that allows you to tract how it can gain or lose value. You need to research by your own that how much value it can provide in future. General price of these varies on demand and supply rule.
It require so much knowledge of programming and blockchain technology. Although you can find some tech companies who can do it for you.