This is the third edition of the Gem 101 Series, and my pick is $BSOV, or Bitcoin SoV.
No I'm not talking of another Bitcoin fork, or the original Bitcoin.
At first glance it could seem like BSoV is a contentious hardfork of BSV, (or even Bitcoin) but I can assure you β it is not. Unlike Bitcoin and its contentious hardforks β BSoV is a completely new token where most of the tokens are not yet distributed. It is only distributed by mining it.
This is a new coin, completely driven by community, based on ERC20 standard and utilizes the EIP918 protocol, which was first utilised by 0xBTC to be mine-able on the Ethereum network.
EIP918 allows both BSOV and 0xBTC to be mineable on Bitcoin via smart contract.
Disclaimer: I'm not a certified financial advisor, and even though I've been trading for quite a few years, I urge people reading this, and my other posts to #DYOR (Do your own research) before taking any decisions! There is no guarantee whatsoever that you will become a profitable trader.
Of course I'm going to help you out if you have some queries/doubts, so feel free to let me know in the comments, or on Twitter :)
At the time of publishing, I'm holding a small amount of Bsov tokens, which is insignificant of causing any dumps in the market :)
The beauty of this token is that, this follows the same distribution model, consensus mechanism and the supply of Bitcoin, in spite of not being a Hard fork of Bitcoin.
There is absolutely Zero pre mine, no ICO, no Developer fees, and it is mined using PoW.
By "Same distribution model, like Bitcoin":
BitcoinSOV had no airdrops, giveaways, development-subsidies or premines. This may ensure that the adopters of BSOV are most likely high-quality and committed community members, compared to those tokens who give away all their tokens for free. The mining feature helps give BSOV intrinsic value, since there has to be work and money involved to produce tokens.
3.6 million coins have been mined so far, and total supply is capped at 21 million, similar to Bitcoin.
Story behind this:
On June 17th, 2019, a person under the pseudonym "Mundo" tried to provide an answer to some of the problems faced by inflationary currencies and tried to address the problems with a laser focus on inflation. The solution he(or she/they) proposed (we have not seen the long term benefits, so the solution is not quite yet an answer) is BSoV, or BitcoinSoV (Bitcoin Store of Value). BSoV differs in one very different way:
1% transaction burn is built into its code.
You can read more about it here: https://bsov.io/stories/
And because of the transaction burn, 3.34 % of mined tokens have already been destroyed!!
Have a look at what they want to achieve:
Note: This is the predicted chart of supply, if the adoption is assumed to be similar to bitcoin.
Reality may be different.
This is deflationary by design, and you will be incentivized to HODL!
(Or you can just go ahead and buy it from Uniswap or Mercatox).
- Is this working same like Bitcoin?
Ans: No.
You can spend your Bitcoin, and pay fees to the miner, and no coins will be burnt or lost.
Here, if you are spending or sending your Bsov, the recipient will get 99% of what you send, and the rest 1% will be burnt from the supply forever.
So as you notice, the supply will reduce exponentially while transactions shoot up, which should in turn ramp up the price soon.
- Is this good?
Ans: Well, to be honest, this is still in it's infancy, and everything depends on user adoption and acceptance. It claims to be more of a store of value, than a medium of transaction, and the token economics look really solid.
Also: Very few people really believed in Bitcoin until it breached $1000
Have a look at the token economics here: https://bsov.io/tokenomics/
Considering this, let's have a look at the charts to see how it has acted as a Store of value so far:
Chart: Bsov, 4H
Link: https://www.tradingview.com/x/ashOtsyU
Point to note:
- This seems to be maintaining the uptrend with the steady reduction in supply, with consistent token burns.
- Even though 3.34% of the supply is burnt so far, we must also note that almost every transaction happening with Bsov will actually reduce the supply even more, which will exponentially reduce the supply.
(Now this looks really interesting to me. Have a look at the token economics to understand about the network effects)
I came to know about this token when @trumpman mentioned it, and I found it to be pretty interesting. I did some research and this is why I felt like posting about this token.
If you are reading this post, do give him a follow as well!
There are people who are believing in this, just like early adopters of Bitcoin, and approximately 27.15% of the supply is already timelocked
The biggest timelocking address has timelocked over 461,121 BSOV, which will take a minimum of 8.88 years to empty. Though, it still remains untouched, so it may take longer.
My personal recommendation:
Have a look about what they are doing, and if you are interested, please go ahead and participate in the network by mining, or developing, or even by buying up some tokens, with an amount you are okay to lose, and don't forget to store them in your private wallet
Wallets: You can store Bsov on any Ethereum wallet that supports Erc20 tokens.
Links for further reference:
Coingecko: https://www.coingecko.com/en/coins/bitcoinsov
Ethplorer: https://ethplorer.io/address/0x26946ada5ecb57f3a1f91605050ce45c482c9eb1
CMC: https://coinmarketcap.com/currencies/bitcoinsov/
Timelocking: https://bsov.io/sovcube/
Whitepaper: https://bsov.io/whitepaper/
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