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Things have value because they have demand. Things have demand because they provide utility. Relative utility determines relative value. And actual price is

Things have value because they have demand. Things have demand because they provide utility. Relative utility determines relative value. And actual price is the ratio of demand:supply. So ask yourself, do any of these altcoins provide some utility bitcoin doesn't? To the extent any do, they will have value to the extent of their marginal utility over bitoin and other altcoins. Every altcoin is trying to provide some marginal technical improvement over Bitcoin, and hence some marginal value. But Bitcoin's first mover advantage, resulting network effects, and stable/reliable core dev team and non-profit foundation all provide significantly more utility - namely trust - than the marginal technical improvements of most altcoins, hence why most will never approach Bitcoin in value. Litecoin is one exception, as the first widely trusted altcoin with a few technical improvements over Bitcoin. Ethereum could also be a possible exception to this, if they can make it work. Very ambitious, will probably have growing pains for a few years at least.

brudgers 13y ago
It appears to me that much of the exchange value of bitcoin has been driven by speculation upon future rewards. If true, maybe JesusCoin has more merit than it appears at first blush. As Pascal might say, "what have you got to lose?" http://en.wikipedia.org/wiki/Pascal%27s_Wager http://en.wikipedia.org/wiki/Pascal%27s_Wager Tangentially: + I find the use of "altcoin" to cover all CryptoCurrency that isn't bitcoin an interesting coption of terminology. + Non-profit doesn't mean charity. One hypothesis is that bitcoin foundation members had a vested interest in putting off MtGox's collapse for as long as possible. I'm not sure if this is better or worse than the alternative hypothesis that the most knowledgeable minds in the bitcoin industry had no clue that MtGox was insolvent. + The technical sophistication of the bitcoin team provided the false halo that created trust of organizations in the bitcoin industry who have to roll their own security - i.e. the cryptographic sophistication of bitcoin does not make a bitcoin exchange secure. None of the "altcoins" solve the problem of stolen coins. + Altair was the first mover in the personal computer space.
- ogreyonder 13y ago
  And Ebay was the first mover in the online auction space. I'm sure we can cherrypick counterexamples all day, but in general the first mover enjoys an advantage those that come after do not.

brudgers 13y ago

It appears to me that much of the exchange value of bitcoin has been driven by speculation upon future rewards. If true, maybe JesusCoin has more merit than it appears at first blush. As Pascal might say, "what have you got to lose?" http://en.wikipedia.org/wiki/Pascal%27s_Wager http://en.wikipedia.org/wiki/Pascal%27s_Wager Tangentially: + I find the use of "altcoin" to cover all CryptoCurrency that isn't bitcoin an interesting coption of terminology. + Non-profit doesn't mean charity. One hypothesis is that bitcoin foundation members had a vested interest in putting off MtGox's collapse for as long as possible. I'm not sure if this is better or worse than the alternative hypothesis that the most knowledgeable minds in the bitcoin industry had no clue that MtGox was insolvent. + The technical sophistication of the bitcoin team provided the false halo that created trust of organizations in the bitcoin industry who have to roll their own security - i.e. the cryptographic sophistication of bitcoin does not make a bitcoin exchange secure. None of the "altcoins" solve the problem of stolen coins. + Altair was the first mover in the personal computer space.

ogreyonder 13y ago
And Ebay was the first mover in the online auction space. I'm sure we can cherrypick counterexamples all day, but in general the first mover enjoys an advantage those that come after do not.