Altcoins are alternative cryptocurrencies to the bitcoin. The bitcoin has established itself as the first cryptocurrency and also the one that dominates the cryptocurrency market.
There are other cryptocurrencies such as ethereum and litecoin. We now have more than seven hundred altcoins and the list is growing. Anyone can come up with their own cryptocurrency because they are all built on top of the same blockchain protocol. Having your own cryptocurrency on the blockchain is the same as having your own blog on the internet protocol.
But who will use all these cryptocurrencies? It’s like asking, who will read all these blogs? The cryptocurrency which solves the most problems for the most people will take a bigger share of the market.
With fiat currencies, you need certain currencies for certain transactions. For example, everyone needs US dollars for importing crude oil from oil-producing countries. People will need particular cryptocurrencies for specific transactions. The competition will push the most relevant altcoins to the top. Some will die a natural death just like some fiat currencies. Remember there are fiat currency wars so also cryptocurrency wars.
So far bitcoin is leading the cryptocurrencies pack but the industry is evolving on a daily basis.