Will Altcoins outperform Bitcoins this year?

Bitcoin is the new digital gold.

10:27 17 February 2020

At times of uncertainty, investors have already started finding bitcoins (BTC) safer than gold and other traditional anti-fiat assets.

And, undoubtedly, crypto trading plays out really well, showcasing awesome performance over short as well as long term. But, bitcoin is not the only player in the town.

2019 has seen many crypto coins outperforming the so-called safe haven bitcoin. These cryptocurrencies other than bitcoin are called “Altcoins”.

Needless to say, Altcoins have a peculiar characteristic of following the bitcoin. However, as bitcoin goes up, some altcoins overperform, and others underperform.

After reading this article, you will be able to answer whether Altcoins will outperform Bitcoins in 2020 or not. So, let’s dive in.

First, let’s scrutinize the correlation between Bitcoin and Altcoins.

How Altcoins Follow Bitcoin?

Most of the big players opt to choose cryptocurrencies based on its beta. By definition, beta gives the measure of the overall volatility of the entity. Understanding the beta in the right way would help you understand how it would react to various market actions.

Look at the chart below. There are Bitcoin and the other four altcoins. You can observe that as the bitcoin started going up, the altcoins having higher volatility ( or beta), upsurge drastically. Therefore, the altcoins have outperformed the decently moving bitcoin with the help of beta.

In the coming months of 2020, the bitcoin is expected to nudge further higher, majorly because of its halving effect and uncertainties prevailing in the global equities market. With even a small increase in the bitcoin prices, the altcoins might outperform the bitcoins, underpinned high beta.

Of course, the altcoins can even get slashed heavily if the bitcoin takes a sudden downside move anytime. So, better stay alert if bitcoin travels opposite to your expected direction. Anyhow, current world scenarios continue to remain unhealthy, causing the global stock markets to plummet. It was quite surprising to spot that investors were diverting more towards cryptocurrencies instead of commodities like the yellow metal at times of emergency.

Let’s see which are the top Altcoins that could actually take the long ride in the coming sessions with potential upside in bitcoin.

Top 3 Trending Altcoins in 2021

Komodo

This cryptocurrency is known to lead the revolution of blockchain technology. Komodo coin provides an open, composable smart chain platform. Now, what is a composable smart chain platform? Composable means that it can be customized as per user requirements.

Komodo is the world’s most advanced blockchain platform. Its Antara Framework helps in the modification of the Smart Chain so that even games, contracts, and apps can be included. Composable solutions can be activated as needed by putting the required configurations mapped from the user’s requirements.

To provide composable solutions in an open-source ecosystem is not that easy for any blockchain platform. Needless to mention, Komodo becomes the only platform in this world to do so.

Few Komodo composable solutions include:

• A fluid set of resources
  
  
• Independently deployed solutions
  
  
• Modularity & flexibility
  
  
• Agility & rapid development
  
  

Bitcoin Cash (BCH)

Bitcoin came into the picture to free people from third-party intermediaries like banks. After bitcoin’s launch, it was a big boom in the cryptocurrency market in 2014-15. However, various technical glitches and issues were brought forward.

In the meanwhile, Bitcoin Cash (BCH) was launched, enabling commerce and free trade. With BCH, the primary objective of these cryptocurrencies to send “Peer to peer electronic cash” comes true. Both merchants and users are charged with low fees and empowered with trustworthy transactions.

Bitcoin Cash is expected to grow faster in the coming days, considering its untapped high potential.

Things that make Bitcoin Cash more attractive:

• Faster transactions in seconds
  
  
• Highly reliable as there will be no congestion
  
  
• Low Fees
  
  
• User-friendly interface with no hassles
  
  
• Most robust blockchain technology
  
  

NKN

NKN stands for New Kind of Network, which is a peer-to-peer network connectivity protocol and ecosystem that runs on blockchain technology. This cryptocurrency was launched in Jan. 2018. And, it was basically developed, aiming to fix the bugs, inefficiencies, and weak security of the current client-server model.

The developers of this cryptocurrency mention that they use economic incentives to encourage more use and sharing of unused network bandwidths. NKN’s network infrastructure is:

• Open
  
  
• Efficient
  
  
• Robust
  
  

Application developers make use of these features to create a decentralized Internet where the network users can enjoy secure, low cost, and universally accessible connectivity.

Notably, NKN is also known as the third pillar of blockchain infrastructure. Or, you can also call the New Kind of Network (NKN) as decentralized networking.

So, these were among the few top cryptocurrencies that could take the lead and gain substantially in 2020. But, there is no doubt in the efficacy of Altcoins to outperform Bitcoin if Bitcoin jumps higher.

Meantime, what’s your take on Altcoins and Bitcoin for 2020?