The current exuberant rally from the cryptocurrency market has brought altcoins such as ether, litecoin, and ripple into the limelight. But, there are scores of additional promising digital monies and resources which have not only gained in substantial value in the last six months however have the potential to continue to do so over the years to come. One of those digital tokens is bitshares (BTS).
Within this guide, you will learn what the BitShares Project is and if its native cryptocurrency, bitshares (BTS), could potentially make a great investment or not.
What is “BitShares”?
BitShares leverages blockchain technology to create “free market alternatives by leveraging the power of globally decentralized consensus and decision making.” According to its creator, Daniel Larimer, nevertheless, it is more than that. In a blog post, Larimer explains that BitShares is a software, a community, a ledger, a bank, a market, and a money back.
BitShares is a software that provides “a distributed multi-user database with update permissions managed by a predefined set of principles in addition to public key cryptography.”
BitShares is also a decentralized system run by consumers around the world, which keep their databases synchronized as per the rules defined from the BitShares software. This permits the BitShares network to operate as long as there are at least two participants in the community communicating with each other over the Internet.
In the end, a distributed ledger that records all transactions that take place on the BitShares blockchain, also it is the business behind the BitShares job.
Larimer also clarifies the analogy of a lender as it could fulfill the function of a bank by maintaining a distributed ledger that monitors debt collateralized with other resources. In the instance of BitShares, dollar denominated debt is collateralized by BitShares’ cryptocurrency BTS. BitShares supports some number of BitAssets including BitGold, BitSilver, BitOil, etc.. Whereas ordinary banks clinic the unsustainable business of fractional reserve banking, BitShares utilizes at least 200 percent reserve and is often over 300 percent reserve. Whereas normal banks utilize illiquid assets to back (collateralize) debt payable on demand, BitShares uses exceptionally liquid BTS as collateral.”
Despite its broad definition and multi-faceted features, BitShares is most famous for being a decentralized market for “smart resources” that are backed by BitShares’ cryptocurrency and could be pegged against traditional assets like the USD or gold.
The smart resources platform also allows for the production of user-issued resources (UIA) so anybody can produce digital resources on the BitShares blockchain. These digital assets can be specified to be used for a wide variety of things including crowdfunding with equity, for land rights, or as tickets for events.
BitShares’ Blockchain and Cryptocurrency
BitShares’ native cryptocurrency can also be known as bitshares and conveys the ticket BTS. It’s presently in the top 20 largest digital resources and has a market capitalization of around $400 million.
The BitShares blockchain utilizes a Delegated Proof-of-Stake consensus mechanism, which means that voting on consensus problems can be accomplished democratically by analysts. “All network parameters, from fee programs to block intervals and transaction sizes, can be tuned via elected delegates,” the company states on its site. There are 101 elected delegates from the BitShares network who secure the community and, therefore, receive transaction fees as rewards. DPoS permits for ten transactions per second, which makes the BitShares network among the quickest in the business.
New bitshares are made in every block, and also the maximum quantity of new shares per cube decreases over time as it’s true with Bitcoin. New stocks are given to BitShares’ employees who’ve been chosen by the shareholders to run the corporation.
The present circulating supply of bitshares is only under 2.6 billion BTS, and there is a 1 billion BTS reserve fund held by BitShares. The BitShares book pool is used to cover employees and receives an income from transaction fees. The entire source of BTS will not exceed 3.6 billion.
Since its launching in October 2014, bitshares’ cost was investing in the range from below one cent to under 4 cents and didn’t bring important profits for investors. But when the digital assets rally of spring 2017 started, the worth of bitshares increased substantially along with the remainder of the altcoin market to peak at its all-time high of $0.45 on June 10. At the time of writing this guide, the worth of bitshares stood at $0.15 per coin.
The weekly chart to get BTS-BTC about the Bittrex exchange is displayed below. For the week starting July 31, BTS-BTC hit a new low at 0.00003977 along with a bullish Doji candlestick was shaped, suggesting that the downward trend may be over. A fractal purchase level will form at 0.00003977; provided that the price of BitShares stays above this amount until August 21. Once verified, we look to buy BTS-BTC, as the foundation line (red) indicates equilibrium at 0.00008690. Moreover, we see that the Ichimoku cloud remains green in color and the price remains above the cloud, suggesting the long term uptrend is intact. The green region of the cloud signifies a long-term equilibrium zone approximately 0.00008600-0.00009400 for ancient 2018, implying BTS-BTC will revisit this region over the long run.
However, a weekly close below 0.00004530 will point to further losses and suggest that a test of the support provided by the Ichimoku cloud 0.00001300 to 0.0000700 may occur. The altcoin’s volume is also an attractive factor for investors, as it enjoys high interest from crypto traders and speculators, regularly in the top ten cryptoassets according to daily volume.
According to Smith&Crown, BitShares conducted two crowdsale attempts to finance the development of its stage, one using protoshares and one using angelshares.
Protoshares was a new cryptocurrency that utilized Proof of Work and has been marketed with the guarantee to offer token holders a share of prospective products made by Invictus Innovation, the predecessor firm of BitShares. The second fundraising took place in 2014 and has been in the kind of donations in bitcoin and protoshares into Invictus Innovation. During the crowdsale, the business managed to raise between $7 million to $15 million in exchange for angelshares to further its own development.
Protoshares (PTS) afterwards turned into a cryptocurrency bitshares (BTS) while angelshares holders were also able to claim their bitshares. The two protoshares and angelshares now no more exist.
If You Invest in BitShares?
Like with most cryptocurrency projects, the investment story for bitshares focuses on the success or failure of its stage. BitShares has been around since 2014 developing its platform which allows users to digitize “real world” assets and exchange them on the blockchain in a decentralized way. In case the digitization of traditional assets and securities becomes industry standard in the financial industry and when BitShares manages to turn into the go-to platform for this, then the value of bitshares (BTS) will skyrocket.
An emerging platform of interest is the OpenLedger Decentralized Conglomerate, the planet’s first blockchain powered conglomerate, which relies on BitShares technology. OpenLedger hosts many jobs, for example GetGame, eDEV.one, and Apptrade; GetGame relies on game-related notions with a focus on VR, AR and blockchain-based creations, whilst eDEV.one is a freelancing platform based on blockchain technology.
Having said this, the competition from established foreign exchanges who are working on a similar blockchain-based solution could become a threat to BitShares success story. If BitShares doesn’t manage to outcompete other marketplace participants, then it will be unlikely for its native cryptocurrency to “visit the moon.”