Bitcoin Fork is a change to the bitcoin protocol. When a majority of miners decide to change the rules, then the cryptocurrency(bitcoin) is forked. Bitcoin Interest is the latest bitcoin fork.
What is Bitcoin Interest?
Bitcoin Interest(BCI) is the latest fork of Bitcoin which will happen on January 22nd, 2018 at 11:59 PM GMT, or at block 505083. BCI is a smooth global payment system which focusses on Technology, Community, and Savings. BCI is unique because of its new savings technology that allows the users to gain interest for storing their coins.
This means you get paid for holding your coins(BCI) Wow! Let's see the key differences between Bitcoin and Bitcoin Interest.
Technology: Bitcoin Vs Bitcoin Interest - Bitcoin is one of the most clogged payment systems today. Delay in transactions, high transaction fees and small block size are some of the pain points with the current protocol. Bitcoin Interest has successfully tweaked the code to make the necessary changes to rectify these common problems with the legacy system and also integrated a new savings technology which will definitely help in gaining the community's trust.
Community: Bitcoin Vs Bitcoin Interest - Bitcoin Interest pledges to treat the miners with fairness and respect. With mining difficulty decreased, more and more miners will jump in to mine the coins resulting in a fair ecosystem.
Savings: Bitcoin Vs Bitcoin Interest - Integration of a familiar financial model to bitcoin is one of the best selling points for BCI. With this technology in-place, coin-holders and miners will get benefitted for holding the coins, unlike the traditional system where you don't get shit for loyalty.
All of this sounds good, How does it work though?
Interest pool: Every BCI block has two reward types, One of reward type goes to the miners for participating in solving the block(With GPU mining enabled and low mining difficulty in place, we can see more miners joining hands). The other reward is sent out to the interest pool to be distributed as rewards to users who have parked the coins for a specific period of time. The interest pool rewards start at 1.08 BCI and as the block size increases the Interest pool reward will decrease to 0.54 BCI.
Interest rates: The best part about BCI is that there is no permanent interest rate. The interest rate depends on the two factors:
- Number of BCI parked by a user, and
- Number of BCI parked in the Interest pool.
To simplify things, if there are 100 BCI coins in a particular interest pool and you own 10 BCI of the 100 BCI's. You will be awarded 10% of the total reward assigned for the entire interest pool. Sounds cool?
Interest cycles: With BCI, you can join either a monthly or weekly interest pool. The idea is not move your coins until the selected period is completed because doing so will revoke you of all the rewards. Each block generates 13.5BCI after completion. Out of the 13.5BCI, 12.5BCI is awarded to the miners for their participation and the remaining 1BCI is sent to the interest pools and divided among the users for storing their coins.
As of today, only HitBit supports the fork, keep an eye on the fork and move your bitcoin to an exchange or wallet which supports the fork and gain free BCI.
I personally believe that this is a huge step forward. With a familiar banking system in-place, BCI will hugely impact the overall market.
That's all for today guys! As always, Invest smart. Live stress-free.
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