Altcoins and Tokens - Why so Awesome? | Blockchain Central

The video provides an overview of cryptocurrencies, focusing on altcoins and tokens. It explains that altcoins are alternatives to Bitcoin, with some derived from Bitcoin's protocol and others built from scratch. Tokens, on the other hand, are based on existing blockchains like Ethereum. The video discusses the development, advantages, and limitations of both altcoins and tokens, highlighting their market capitalization and potential uses. It concludes with a comparison of the altcoin and token markets, emphasizing the infrastructure and investment differences.

What are altcoins?

• Tokens built on existing blockchains

• Cryptocurrencies that have no blockchain

• Digital currencies issued by governments

• Cryptocurrencies that are alternatives to Bitcoin

Which of the following is a characteristic of altcoins derived from Bitcoin's protocol?

• They do not require any infrastructure

• They use a completely new blockchain structure

• They are not influenced by development teams

• They are based on the open-source code of Bitcoin

What is a key difference between altcoins and tokens?

• Tokens are easier to set up but have limited technological changes

• Altcoins are built on existing blockchains, while tokens are not

• Altcoins have no market value, while tokens do

• Tokens are independent of any blockchain technology

Which type of token grants access to goods or services?

• Payment tokens

• Investment tokens

• Utility tokens

• Security tokens

How does the market capitalization of altcoins compare to that of tokens?

• Altcoins have a smaller market capitalization than tokens

• Tokens have a larger market capitalization than altcoins

• Altcoins have a significantly larger market capitalization than tokens

• Both have equal market capitalization

What potential do altcoins have in relation to tokens?

• They can be used to launch new tokens on existing blockchain technology

• They can replace tokens entirely

• They can only be used for mining

• They have no relation to tokens

What is a key takeaway regarding token investors?

• They invest in a specific right or service

• They have control over the blockchain protocol

• They invest in the technology behind the cryptocurrency

• They are not affected by changes in the underlying blockchain