Investors Becoming Interested in Altcoins

Investors Becoming Interested in Altcoins

Did you know that with only 0.001 BTC you can buy about 239 Digibytes?

While cheaper alternative cryptocurrencies aren’t nearly as popular as Bitcoin, they are far more abundant on the market. Plus, since they are offered at much more affordable prices, they are attractive to investors who are hindered by the exorbitant price of Bitcoin.

1 Bitcoin VS. a Handful of Altcoins

One theory is that altcoins seem to show a steady dynamic growth when Bitcoin is in slower periods of growth. Conversely, when the value of Bitcoin climbs or falls, altcoins tend to plummet into the red.

These days, this theory doesn’t seem to hold water. Since, when the Bitcoin market goes into a panic, many altcoins see their prices soar towards the sky.

Now, it seems the altcoin market is starting to pick up again, especially those with lower unit values. This has been the case for the Verge (XVG) whose seen its value multiplied by about 27 since the beginning of December. This is also the case for the Tron and the redcoin that had an drastic increase into their value.

It is worth noting, that despite these impressive increases, the unit value of these altcoins does not exceed $0.10.

Why the Sudden Interest in Altcoin?

The investors who are interested in these lower-priced currencies seem to hold their own views about the market. Most of them seem to be interested in the lower unit price of altcoins, rather than its total value. As a result, they don’t realize that the supply for these coins is much higher than that of Bitcoin.

Many investors with smaller budgets, who do not want to wait to be able to afford an entire Bitcoin, might prefer to buy thousands of altcoins for less than $1 USD. These investors clearly would prefer hundreds of altcoins in their portfolios than small fractions of BTC.

The Return of the DogeCoin

Launched at the end of 2013, the DogeCoin saw its value climb increased by a factor of 4 since the beginning of December. The return of this coin is only one piece of evidence that proves the rise in popularity of cheaper altcoins.

The DogeCoin is a digital currency that was created by Billy Marker, a former IBM engineer.

While BTC is mostly used for larger transactions, the DogeCoin aims at being used for smaller transactions such as buying mobile applications.

How Many Bitcoin Per Saver?

It is rather difficult to get an exact figure to answer this question. According to information relayed by news.bitcoin.com, there are less than one million individuals who have at least one whole BTC. However, some wallets belong to trading platforms, which means some of the Bitcoins belong to several investors. On the other hand, there are also some investors who have spread their Bitcoin across several different portfolios.

One way to answer the question is to estimate 45 million people sharing the 16,7 million Bitcoins that are currently available. This amounts to 0.37 BTC on average held by each saver.

Shares 0
Share
  •  
  •  
  •  
  •  
  •  
  •  
  •  
Close