Hundreds, possibly thousands of coins have been made. Like Jackpotcoin, many are clones of each other, and have less features than Bitcoin. Few coins will rise to the top and rival Bitcoin. Today, we review the history of digital currencies and examine exactly what makes a cryptocurrency successful.
1. First Mover Advantage
Unfortunately, the greatest and most helpful feature of having a successful cryptocurrency is in how early it is released. Litecoin is merely a Bitcoin clone with a scrypt algorithm instead of SHA256. But check out the numbers: Litecoin completely dominated the field simply because it was released so early. It was number 2 for years before anything came close to it. Jackpotcoin wasn’t so lucky. Even now, the subreddit for LTC is active. But since it does not bring any true value to the market of cryptos, it has since fallen. We can safely say there’s no one out there buying this anymore.
Yes, Litecoin is dead.
2. It is Fun
Do you want a fun or boring crytocurrency? Of course you want the awesome fun one! For all the crypto veterans out there, you already know which one I’m talking about. No, it isn’t Jackpotcoin. A joke cryptocurrency that rose from nothing, and became an instant success. That’s right, it’s Dogecoin. Released in 2013, the currency blew apart all its competition and everyone memed about it. You had to be there. Coins were given away, people made money, and it grew like wildfire. More importantly, it was fun – making it go viral all over Facebook and Reddit. Before long, the coin had nearly $100m USD in market cap. You can see why we want Jackpotcoin to also be fun. Don’t underestimate how important fun and memes are. The community even sponsored a NASCAR driver for $20 million dollars. Dogecoin made the news for a ton of events. No other cryptocurrency has done that.
Unfortunately, this coin also died because it lacks actual value, which brings us to the next point.
3. Actual Value
Bitcoin was the first original innovation in the industry. That’s why it became such a success, peaking at $20 billion dollars in market cap. No other coin has even come close, with Ethereum at a far second with $1 billion. This truly represents how important bringing value to the table is. Without Bitcoin, none of these other coins would even exist today. Thanks to Satoshi Nakamoto, we have the code base and ideas to bring currency into the digital age. This is the last point, but also the most important. Without actual value, the coin will inevitably die like Dogecoin and Litecoin. Interestingly, Ethereum has started to show some actual innovation – though it’s not as innovative as Bitcoin was, it does provide some very key features we will need in the future. Smart contracts will bolster the applications available for users. They will be more secure and available due to the smart contracts. While you could make contracts with Bitcoin, the process takes much longer. Bitcoin wasn’t designed for smart contracts and coding. Ethereum was built to handle code, and we’ll see just how much value Ethereum will provide us in the future.
With that said, it’ll be a few years before Ethereum shows its value. It now faces the greatest test – the test of time.