Welcome back to GoMining Academy's Blockchain and Cryptocurrencies course.
So far, you've learned what blockchain is, how cryptocurrencies work, and how decentralized networks stay secure without a central authority. But once you understand the basics, a new question naturally follows:
If Bitcoin solved the problem of digital money, why are there thousands of other cryptocurrencies?
Open any crypto exchange and you'll find an overwhelming mix of names, prices, and projects, complicated even for seasoned investors.
The good news is that you don't need to understand every cryptocurrency. You just need a few simple categories that help make sense of the landscape.
In this lesson, we'll explore the three main groups: Bitcoin, altcoins, and stablecoins, what separates them, why each exists, and learn how to spot the difference between a project trying to do something real and one trying to ride a hype cycle.
By the end of this lesson, you will be able to:
- Understand the difference between Bitcoin, altcoins, and stablecoins
- Explain why this variety of crypto is needed
- Break down how stablecoins work, and why people use them
- Use market cap as a basic tool for comparing different cryptocurrencies