“Digital gold” has become a very popular phrase since the creation of bitcoin and the concept of using it as a store of value. However, bitcoin may not meet the criteria as compared to Bitgesell, a new cryptocurrency project.
Bitgesell is an innovative cryptocurrency project equipped with practical applications that offer a more attractive proposition to miners, holders, and users of crypto.
Despite being the first of all cryptocurrencies, Bitcoin’s infrastructure and ecosystem are still ridden with problems that do not fit the digital gold model.
Some of these issues include excessive computational energy, dwindling mining rewards, and elongated scarcity. Â
The bitcoin network is such that miners are at the heart of ensuring the functionality of the blockchain. The mining process has become institutionalized due to the excessive requirements, making it a feasible venture for a select few. At the time of writing, mining in bitcoin is not as decentralized as expected and is not an option for earning income for many.
Further, the mining reward that serves as an incentive for people to mine and keep the network healthy is dwindling slowly, making it less profitable. Despite the fact that some miners will always remain and transaction fees will provide some form of reward, most miners might fall off.
Other innovations in the space like lighting network and segwit might also decrease revenue from transaction fees.
Another celebrated feature of bitcoin and one of the reasons why it is labeled as digital gold is scarcity. However, bitcoin’s scarcity model is slow, reaching zero in 2140. For the next 120 years, there will still be a constant supply of bitcoin.
Bitgesell, on the other hand, provides a better economic model, worthy of the tag digital gold, as inflation is controlled and happenings over a shorter period, miners receive better rewards alongside a coin burning cycle.
Bitgesell Specifications
- Block Weight: 400,000 (10x smaller than Bitcoin)
- Halving interval: 210000 blocks/4
- Total supply: 21,000,000
Bitgesell sets a higher transaction cost that serves better utility for a project that represents digital gold. A higher transaction cost provides an incentive for people to participate in network protection and also means that only large amounts of coins are moved at once.
Ensuring that miners maintain profitability is important in guaranteeing network security and strength. With a faster mining cycle scheduled to end in a few years, miners on the Bitgesell network will still be incentivized to confirm transactions, unlike that of Bitcoin.
Bitgesell burns 90 percent of all transaction fees to reduce the number of coins in circulation further. Burning in cryptocurrency refers to the process where coins are permanently removed from circulation.
Burning tokens decreases the supply of Bitgesell while demand remains in place, which will contribute to positive market sentiments in the long run.
What’s more, Bitgesell mining rewards halve every year instead of Bitcoin’s 4-year cycle. A feature that Head Developer, Emma Wu says will lead users to experience the future of bitcoin before it happens.
Bitgesell can be perceived as a future of bitcoin, because of its smaller block size, how segwit extension would be developing (lightning network) and due to halving occurring each year, only after 2-3 years we will witness the future of bitcoin, not having to wait for 11 years.
Finally, the Bitgesell network addresses scalability issues that have been a major worry for users of most cryptocurrencies like Bitcoin and Ethereum. Bitgesell has implemented the segwit protocol fully to enable swift transactions on the blockchain.
With a well-planned inflation structure that ensures that the supply and dynamic metrics mimic that of gold or a scarce asset, Bitgesell is a cryptocurrency to consider for your investment portfolio. You can buy and sell Bitgesell on the HotBit exchange registered in both Hong Kong and Estonia.
For more details on Bitgesell, check out the project website https://bitgesell.ca/.
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