The use of the word coin has grown in recent years, but not because people are physically trading actual metal coins any more than they were.
Bitcoin is the main brand that seems to have started the use of the coin suffix and it has sparked lots of other terms like stablecoin and meme coins. They’re all different but they all have a similar origin and owe to the blockchain. Blockchain tech which started as a niche interest for tech enthusiasts has now become a mainstay due to the benefits of blockchain – but other coins have followed in the footsteps of the original.
Bitcoin – Currency That Changed Things
Bitcoin is the original cryptocurrency and perhaps the one that started the term being used widely. Created by an unknown person (or group) probably using a pseudonym (the enigmatic and probably mythological Satoshi Nakamoto) Bitcoin was designed to be a digital alternative to traditional money.
Decentralized networks are the key to the currency and they mean no central authority like a bank or government controls it. Blockchain transactions are verified by a network of computers working together that help maintain the security and integrity of the blockchain and are not controlled by one specific entity.
While in the early days, Bitcoin was mainly seen as an investment, some industries are helping to turn it into a possibility for everyday transactions –some industries are embracing cryptocurrencies a lot quicker than others.
The gambling industry was quick to catch on and utilize some of the benefits of crypto. When it comes to online gambling, people are often looking for a way to move money around quickly as well as embracing a level of anonymity and security. Cryptocurrencies have the advantage of being decentralized and not requiring a bank to approve things. Bitcoin also has low fees compared to some other ways of paying so many people use this method to put money into their gambling accounts. The audience for these sorts of sites is often quite tech-savvy, too. This means that people are more likely to be familiar with how to use crypto and what the benefits are.
Gambling sites have embraced crypto while still using many of the same games and traditional table games as well as online slot games are available to play in crypto casinos. It has been estimated that the majority of all Bitcoin transactions relate to the gambling industry which shows just how widespread the use is. More people are familiar with how to buy Bitcoin and trade this currency than any other form of crypto.
Meme Coins
Meme coins are a type of cryptocurrency that definitely tends to have a light-hearted outlook and sometimes funny designs based on memes. Part of the thinking behind them is that cryptocurrencies can be based on pretty much anything with no need for them to be particularly serious in the branding.
Dogecoin is the most famous example of a meme coin and has been around for over a decade now, with celeb users meaning Dogecoin quickly gained a following, and its popularity has soared in recent years, partly thanks to endorsements and social media buzz. The Subreddit for Dogecoin has over 2.5 million members so plenty of people are familiar with it.
Meme coins tend to have a playful vibe, often focusing on community and fun but they still can be traded and used by some so they have reached a similar level of acceptance as Bitcoin, and they’ve carved out a unique niche in the crypto landscape. They can’t be used in as many places as Bitcoin but they are seen to be in an earlier stage of their development!
Stablecoins
When people first explore the world of crypto they may notice that there is another concept in coin types; stablecoin. Stablecoins offer a different approach to the same concept and still use blockchain as the main mechanism.
These types of coins are pegged to another commodity or asset like the dollar or even gold itself. Tether (USDT) is one of the most well-known stablecoins, and it’s pegged to the US dollar on a 1:1 basis. Companies that launch stablecoins usually keep a reserve of the asset in question tied to the funds but each has its own variations in the specifics of this and what assets are held.
Conclusion
The types of coins might seem a bit confusing at first glance but a dictionary isn’t required – all of the different types of coins are aimed at different parts of the market and they all have their own sets of features and branding.
Dog-themed meme coins might seem like a joke but they have an inherent value and are traded just like other forms of cryptocurrencies, and of course, Bitcoin can be seen as the OG in the world of crypto as it has the highest market cap and is widely-used across some industries.
