BITCOIN VS ALTCOINS EXPLAINED - YouTube

all right welcome back to the channel today we are  going to be talking about bitcoin versus altcoins  

what is bitcoin what are all coins what's all this  talk about let's uh let's start from the ground  

level right shall we all right let's jump into it  uh first off up top this is not financial advice  

and um this is just for fun and entertainment so  uh hopefully we learned something today uh press  

subscribe if you would like to and come hang out  a little bit more and learn more about this stuff  

um it's it's a bit of a rabbit hole it's a fun  rabbit hole and uh and it's the future of uh  

our financial system so all right so let's jump  into it bitcoin if you were to google bitcoin it  

says bitcoin is a decentralized digital currency  without central bank or single administrator  

that can be sent from user to user on the  peer-to-peer bitcoin network without the need for  

intermediaries so what does that mean essentially  there is no bank there's not a bank there's not a  

ceo of bitcoin there is not a it's not it's not a  company actually no one actually knows who created  

bitcoin um there is a kind of mysterious entity  um satoshi nakamoto i hope i said that right that  

created bitcoin um but all in all it  is a mathematically kind of driven  

logarithmic um very it's very complicated actually  much too complicated for me to to get into  

how it's uh how how the mathematics behind bitcoin  but um basically it's it's what a lot of people  

call digital gold and it's it can be mined through  gpus and cpus on computers or as increasingly uh  

it takes more and more energy so your standard  cpu and gpus at some point won't be able to  

mine it so basically the power and the energy that  it it takes to for these gpus and cpus to figure  

out um certain sequences uh in codes to unlock  or mine the bitcoin from the blockchain um is uh  

how bitcoin comes to be how there is more um in  in uh circulation that is how bitcoin is mined um  

and you can download nicehash there's a bunch of  websites out there that you can actually if your  

computer is power enough powerful enough or you  have a high-end gpu you can actually mine bitcoin  

i mined it for a little while but it wasn't super  profitable for me uh anyways i feel like i'm  

digressing a little bit but um that essentially  is bitcoin it's it was the first digital currency  

um to really kind of it's a there's a set finite  amount of it we know how much there's going to be  

and that's it for all of time um and this was  the first digital currency so anything created  

after that has largely been considered what's  called an altcoin um in some all coins let's go  

to coin get go if you've not heard of the site  it's a really great resource to kind of get  

an idea of the top uh coins in the market right  now as you can see most of them are down but um  

ethereum let's start there uh you've probably  heard of ethereum ethereum is considered to  

be the top altcoin if not i would say a blue  chip coin at this point ethereum's been around  

for quite a long time and it's the test of time  and it is the second biggest coin by market cap  

and it will likely stay that way for some time  um but anything that's not bitcoin is considered  

a altcoin and all coins are inherently and  this is important speculative um all coins  

tend to come and go um bitcoin has always  been at the top um in terms of of market cap  

but so you have some some notable all coins here  let's just let's just go through and we have  

ethereum uh we don't want to do that ethereum um  binance coin uh tether which is uh a stable coin  

so you have tether and usdc which are kind of  try to maintain a a one dollar flat value uh to  

to the us dollar to which you  can use to buy or stake or loan  

digitally but some other big alt coin  projects are solana cardano uh xrp polka dot  

uh does corn and sheep shiva we won't really  talk about that those are more meme coins  

um but serious projects include avalanche uh  cardano like i said solana ethereum these are  

the ones you're gonna want to pay attention  to um but like i said these are inherently  

speculative these uh these coins tend to power  uh a blockchain they support kind of um uh  

these these projects um so ethereum and solana  and cardano these are kind of considered to be  

platforms um to which other currencies  and side chains and stuff are created  

much like polka dot um and let's see here what  else i want to say about alt coins altcoins um  

like i said because they are speculative  they are more volatile and they tend to  

when they uh when bitcoin is up they tend to  pump a little bit higher than bitcoin they'll  

have a higher um return but when bitcoin goes  down they'll also have tend to have a lower uh  

return and one important thing that i want to  bring up is the idea of bitcoin dominance so this

oh don't want to open an account what am i doing  oh my gosh bitcoin dominance let's try this again  

here we go okay launch the full chart view this  is an important chart because um you'll hear a  

term called altcoin season that's thrown around  and that basically means bitcoins going sideways  

um or is going up but all coins are gaining  substantially more than bitcoin um so this tends  

to follow roughly historically two weeks after  bitcoin has been on a pump uh it will kind of go  

sideways for a little bit and consolidate before  it goes up a little bit further or goes down  

when bitcoin goes down it tends to gain  dominance recently it's not necessarily done that  

you can see that its dominance has  been in a pretty steady decline  

here um even as it's been declining um  so this is this is just part of how the  

market's gonna work um bitcoin's gonna have  diminishing returns um these other coins are going  

to take away some of the market cap of bitcoin and  as time goes on some of these coins won't be so  

considered all coins they'll be kind of considered  blue chip coins along with ethereum um but yeah  

uh i feel like i've made some good headway here  if you have any questions about this please let  

me know in the comments i'm happy to talk through  this all day answer any questions that you have  

i hope that this gave you some idea  i threw out some words there that  

may or may not make sense um but i'm happy  to expand on those in the comments so um  

please subscribe like if you liked  this content if it was helpful  

um but that is basically the breakdown of  bitcoin and all coins now go forth and be

be a a crypto guru i don't know have a good day  we'll see i'll see you next time see you around