Why is Bitcoin better than other cryptocurrency?

2

1

If there too many types of such kind of currency, will them be very cheap?

I have 4 BTC and since the current BTC price waves a lot, I am wondering this.

Thanks,

AGamePlayer

Posted 2014-02-13T08:08:09.360

Reputation: 281

Question was closed 2014-02-21T13:33:37.470

Answers

3

Only time will tell if Bitcoin is the better. For sure is the first introducing this concept and the biggest market cap at the moment.

Be sure to understand the "cheap" concept. Absolute value means nothing

Suppose at time t1 there are 2 coins and their prices are: A 1000$, B 1$

After some time this are the coin prices A 2000$, B 1.5$

At time t1 coin A was the cheapest!

Riccardo Casatta

Posted 2014-02-13T08:08:09.360

Reputation: 510

0

Ripple is the most functional since it has nearly instantaneous verification & confirmation, approximately 10 seconds.

Imagine if you had to wait the 60 minutes required for total confirmation to buy something in your daily life like a coke at a vending machine. I think you'd either pass, use a fiat, or use something like Ripple. I've never waited an hour for a Coke, so I could be biased.

In that regard, most cryptocurrencies are not currencies but assets.

Then again, you could always forgo 100% confirmation and hope for the best, but we've seen how that's working for the exchanges that do so.

It should be noted that there is an element of centralization to Ripple, but it seems there are plans to fully decentralize.

user5107

Posted 2014-02-13T08:08:09.360

Reputation:

It's kinda unfair to say Bitcoin is slow, no other cryptocurrency has solved the speed issue and will be just as slow at the size of Bitcoin. – John T – 2014-02-13T18:58:28.757

1@JacobTorba Ripple has. – None – 2014-02-13T19:12:33.437

1The speed of Ripple, if I understood its concept correctly, is due to it taking advantage of the "small world" networks we people tend to create. Thanks to that effect, the mini-networks we interact most with tend to be very small, so traversing them all is fast and allows for such speed. On the other hand, to trade a very rare crypto-currency, with someone you're connected by the 10th degree, and wants in exchange another very rare coin owned by a contact of a contact of a contact of yours... then it'd be "really" slow :) – Joe Pineda – 2014-02-13T19:54:19.867

@JoePineda Thank you for contributing Joe Pineda! I agree, but doesn't Ripple have its own base coin? I wouldn't use anything else because I'm not sold on colored coins. Thank you so very much in advance! – None – 2014-02-13T19:57:02.440

1Yes, Ripple has XRP, but they're not really meant to be a coin to pay for stuff with. They're used to pay transaction fees which don't go to "miners" - they're rather destroyed (hence, premined on purpose). They're obligatory and go up/down dynamically to dissuade spamming the network. Within the XRP net, you can ask for dollars and I can pay you in pesos, cattle, bitcoins, whatever... as long as there's a path of exchangers (which can be friends, relatives, banks, acquintances) connecting both of us, the network will auto-convert. In a sense, XRP is a colored-coin. – Joe Pineda – 2014-02-13T20:13:55.950

@JoePineda Thank you for that knowledge Joe Pineda! Is it impossible to use XRP directly for purchases? If someone wants to go through the extra colored hassle, so be it, but is it available as a true blue currency? Thank you again so very much in advance! – None – 2014-02-13T20:18:50.747

1You do can use them directly, but it'd be a waste of their power. Imagine you sold something to me. You accept only euros or dollars, I have pesos, cattle and BTC. My bank connects directly with yours (thru the XRP net), but they ask a high fee. But, then a friend of yours living in France accepts feathercoins in exchange of euros, and a friend of mine accepts my cattle or pesos for feathercoins, and they both take a very small fee. So the XRP net auto-selects that path, exchanging along the way, to help us get the best deal with what we have - and some XRPs get burned at the end. – Joe Pineda – 2014-02-13T20:27:57.863

@JoePineda Thank you so very much again! If there's no true limitation to adding nodes, that cost should drop. I think that's a decent avenue for converting flow denominations to XRP, but if there was an optimal cryptocurrency, I would only use it or depositories like today's modern banks by telling buyers to pay in XRP and only choosing XRP denominated sellers. – None – 2014-02-13T20:36:52.580

-1

Depends on your meaning of "better", which in turn depends on your intended use:

  • For micro-payments, given a single bitcoin's value, it's mostly useless. Any of the new, tiny crypto-currencies would be much better for that - actually Dogecoin seems to be specializing into this role given it's the minor crypto with the most trading volume.
  • As a store of value for your life savings Bitcoin is very useful as in the long run it tends to appreciate - even though in the short term you might get a hard blow should you need to take out some of your money when value's down a big notch, as is happening at the time I'm writing.
  • To pay for small stuff without too much risk for the vendor, Litecoin is the single most useful as it allows vendors to get a couple confirmations in a couple minutes, nullifying the risk due to transaction malleability and reducing the risk for double-spending. Furthermore, it already has services in place for vendors willing to accept it.
  • As a bragging item a 42coin might be better, given the value of a single coin (more than 100 bitcoins as of now - yes, you read that right). Be warned, though, after the mega-hype at its launch (reaching briefly +850BTC per 42coin) it's only gone down, down, down from there...

(post-edit expansion)

Why Bitcoin is not useful for micropayments, as-is? 1 satoshi = (aprox) USD $0.0000065 so theoretically you could send a micropayment in just satoshis. But then very few miners would include such a transaction without a fee, so you'd end up paying dozens or even hundreds of times the original amount in fees just to ensure it's included in a block.

Plus, the standard client asks for a minimum of 5000 satoshis to be sent, so that sets a hard limit of US 3.25 as a lower limit to be sent.

1 DOGE = USD $0.0013 and the transaction fees are usually between 1 cent and 10 cents. So I can send 0.1 US cents to someone and pay no more than 0.01 US cents in fees - and given it can use up to 8 decimals, just like bitcoin, I can actually send much lower micropayments. Plus, given the small amount of permanent inflation of Dogecoin, it's very probable its value will remain low vs. fiat.

As for usefulness for low-end sellers vs. that of Litecoin, in 6 minutes a merchant accepting Litecoin gets 6 confirmations, equivalent to a level of security of 2 confirmations in the Bitcoin network in a third the time with no extra effort from the merchant. For the good or the bad, it seems Litecoin will have its niche market in that.

Joe Pineda

Posted 2014-02-13T08:08:09.360

Reputation: 2 050

Point 1 and 3 are nonsense. – Jannes – 2014-02-14T14:42:05.183

@Jannes Thanks so much for the clear explanation of why such points are nonsense, and doubly for so clear arguments for your position. – Joe Pineda – 2014-02-14T16:29:10.510