Bitcoin was the first cryptocurrency created, with the goal of offering a decentralized and secure financial system. Altcoins, such as Ethereum, Ripple and Litecoin, emerged with specific purposes that differ from Bitcoin.
1. Origin and Purpose
Bitcoin (BTC): Created for decentralized transactions and store of value.
Altcoins:
Ethereum: Platform for smart contracts and decentralized applications.
Ripple: Focused on fast and cheap international transfers.
Litecoin: Alternative for faster daily transactions.
2. Technology and Operation
Bitcoin uses traditional blockchain and energy-intensive mining.
Ethereum introduced smart contracts. Ripple uses consensus instead of mining. Litecoin has more efficient mining and faster blocks.
3. Scarcity and Value
Bitcoin has a limit of 21 million coins, reinforcing its scarcity.
Altcoins vary: Ethereum is unlimited, Ripple has already issued all the tokens, and Litecoin has a limit of 84 million.
4. Usability and Use Cases
Bitcoin is accepted as a means of payment and a store of value.
Ethereum is used to build decentralized applications. Ripple facilitates banking transactions. Litecoin is ideal for fast payments.
5. Adoption and Popularity
Bitcoin is the most well-known cryptocurrency, but altcoins like Ethereum gain relevance for their specific functionalities.