Many people will automatically assume Bitcoin is the sole currency in circulation, but many currencies are on the rise. BitShares is among them, especially in giving decentralized asset exchanges (in a similar way to NYSE) without the requirement of a central institution to handle the funds.
What is BitShares?
This public, open-source blockchain platform uses a global network of computers to handle all transactions. The symbol of its token is ‘BTS’, which anyone can use as loan collateral and collecting fees for network operations. The aim of this currency is giving free market solutions to safeguard property, life and liberty.
Launched in July 2014, its founder is an American programmer, Daniel Larimer. The coin is currently part of the Microsoft Azure blockchain.
Why is BitShares different?
Similar to Bitcoin, BitShares utilizes the same blockchain technology, and it is open-source. The difference comes in BitShares using proof of stake instead of proof of work, and this means that mining is not a major feature of this currency.
The blockchain allows you to change your cryptocurrency into stable assets, through changing these coins into other cryptocurrencies that derive their value from real life assets, for instance Bitcoin (tied to the USD). This provides certain advantages over normal exchanges. In addition to this, the currency has other distinctive features, including:
Asset exchanges that are decentralized
Flexible withdrawal permissions
Referral rewards – this is to grow the network substantially
Account permissions that are dynamic (especially for businesses)
Crypto asset issuance that complies with set regulations
Alternative coins to use
BitShares has the potential for increasing popularity with time. However, other coins provide viable alternatives, and we have put a list of some of them.
Litecoin/LTC – launched in 2011, it is a highly sought after currency. Based on promoting open source payments without control from central authorities.
Bitcoin/XBT – the most famous cryptocurrency, from 2009. It is similar to BitShares because of blockchain application system.
Ripple/XRP – based on open-source internet protocol currency, and formed in 2012.
Cardano – thought to be an open-source digital currency, and constantly evolves itself from research and scientific philosophies.
Ethereum/ETH – this is a 2015 decentralized software platform allowing smart contracts to operate without interference from third parties.
NEM – this is another blockchain currency from 2015, and utilizes Java script in its coding.
How BitShares works
The platform blockchain has its currency having a market peg – this means that it has a maximum supply, with its inflation decreasing with time. The price is volatile just like other cryptocurrencies, though the system permits you to create BitAssets like BitUSD using bitshares.
In addition, BitAssets pay yields to their owners – similar to interest that increases on bank deposits. The difference is that the yield originates from changing market fees, so it is more like dividends. Blockchains choose the orders that have the highest interest rates for speculators, and then the owners of the BitAsset receive payments.
Trading BitShares currency
You cannot purchase or store XVG (BitShares) without the digital wallets, or creating an account with a currency exchange. Here are the steps to follow when setting up the wallet.
Head over to the official BitShares website page (Bitshares.org) and download the file that is compatible with your computer.
For you to make an account, you must first have a small amount of the bitshare coins, and you can get these from the Bitshares faucet.
You will need some BTS because this is the base currency for the decentralized exchange. You can purchase it at various exchanges.
For any BitAsset that you own, you will receive some dividends on it when you decide to sell it. This amount slowly increases with time, but you should ensure you access your account regularly even for small exchanges (so that you avoid penalties).
BitShares prices and trading history
Bitshares are unique among cryptocurrencies because of the price stability, resulting from the currency value tying in with real life assets like gold and the USD. It also gives users scheduled payments, similar to bank transfers.
Its current value is at $0.20, with the value steadily increasing over time. Increases and decreases in price are not drastic however, so it is safer to invest in the currency long-term.
Is it worth trading in the coin?
This question is complicated, since even experts generally see investing in cryptocurrency as a risky venture with low returns. The reasons given usually cite the highly fickle nature, and the unpredictable rises and falls in value.
The success of investment will depend on the failure or success of the platform, which is gradually gaining popularity due to the secure nature of the prices. The problem may come in however, if international exchanges succeed in creating a similar blockchain solution to BitShares.
The rise of BitShares mirrors the increase in popularity of digital cash because people want to spend money without the bottlenecks of financial institutions. The benefits are many if you invest well and prepare yourself for changes in value, but it is best to do this wisely.