Coin Origins

Why are there so many Coins?

As you might have noticed, there’s a LOT of different cryptocurrencies with wildly differing prices. This is because much like credit cards, with different rewards, these currencies all do different things.

Bitcoin, and all cryptocurrencies, are what’s known as open-source. Its code is available on the internet for anyone to see and use. This results in anyone being able to copy the code, and modify it for a different use.

While they all rely on blockchain technology, they have different uses and features. This makes them more attractive based on what you want to do. Just because the price is thousands of dollars, doesn’t mean that it’s the best. Just because the price is a few cents doesn’t mean it’s going to rocket to the moon like Dogecoin.

It’s at this point you’re probably asking yourself 2 questions: Why is bitcoin worth so much more, and why is it that high. Well that’s a good question with a complicated answer. I promise I will get there.

What determines the price of a Cryptocurrency?

The ONLY THING that determines the price of a coin is Supply and Demand, what someone else is willing to pay for it. What they’re willing to pay depends on what you can do with it. Some coins can only be used for simple transfers, like Bitcoin and Cardano. Some coins like Ethereum can be used for interacting with blockchain applications. People should pick the coin based on what they want to do with it. I’ll explain the differences in coins below.

There are some coins listed on exchanges that are known as “tokens”. A token is a special type of cryptocurrency that exists as part of another blockchain, and provides some kind of special use or value. It can exist in the same wallet. If you have an ethereum wallet, then you also have an ethereum token wallet. Be sure to check that you’re sending the token to the applicable wallet, otherwise it will be lost.

Before I get to the descriptions of the different coins it’s important that I explain a few terms.