BitSharesX – Alt Coin Overview
A quick look at CoinMarketCap shows there are 479 currencies, 13 assets, and 1476 markets. Many alt coin investors have been burned by buying a new cryptocurrency only to learn later it was marketing hype, and not backed by new technological innovations. One way to learn about new cryptocurriences it to look at the top market capitalization of alt coins:
I noticed that BitSharesX is the number four alt coin with a market capitalizations of 64.5 million, and well ahead of Peercoin, Nxt, and Dogecoin with respective market capitalizations of 35.3 million, 34.7 million, and 28 million. Additionally, I had heard BitSharesX mentioned a few times recently in a positive manner. That it is like share ownership, you get paid a dividend, and the block reward adjusts somehow.
For starting I went to the BitSharesX website. There slogan is: Trade Crypto Equities With Security, Privacy and Speed. Clicking to learn more, there is another slogan: Your Own Personal Fort Knox.
BitSharesX allows you to buy, sell, and trade all kinds of virtual assets that track the value of real world items like dollars, gold, silver, and even shares of companies. They can all be bought, sold or traded right in your BitSharesX account, with anyone on earth, at any time, instantly.
The apparent next step was to download the client which looks like this:
One interesting tab is the “Delegates” which appears to be the top traded assets, like “bts500” and “chinese”. There are stats at the top like Approval, Reliability, and Blocks Produced.
The client looks decent, but I am still confused what I am buying shares in. What is a delegate, and what does “bts500” mean? What does the approval rating signify? Are miners producing the blocks, and what the Reliability stat indicate? I am left with a lot of questions as the client seems quite sophisticated. In order to fully understand the client would probably require an extensive tutorial or help from an expert. I tried closing the client and it said it would minimize it to my system tray, when I right clicked on the icon in my system tray nothing came up. So I had to go to the client and close it manually.
Downloading did not make it much clearer to me what the system is so I went back to the website and looked at the Wiki.
Here we have an explanation:
BitShares X is a family of DACs that implement the business model of a bank and exchange. These distributed autonomous credit unions could rival the value of the largest banks in the world such as JP Morgan and Bank of America in just a few years. BitShares X offers a bank account where funds can be transferred in seconds anywhere in the world with more privacy and security than a Swiss bank account. Your account can never be frozen, your funds cannot be seized, and the bank can never face collapse due to loan defaults or fraud. All of this is made possible without requiring any employees, lawyers, regulatory compliance, vaults, buildings, and other infrastructure required by traditional banks. Unlike existing banks, you can hold your balance denominated in gold, silver, oil, or other commodities in addition to national currencies.
Next there is a video from Daniel Larimer who is the CEO of Invictus Innovations, the creator of BitSharesX.
The video explains that BitSharesX is dealing with “polymorphic digital assets”. Already that is a extremely difficult phrase to process. If I own shares of company, represented through BitSharesX, then what I am actually owning if not a share in the company? Polymorphic meaning the scope of the digital asset can change easily?
BitShares also enables collateralized shorts, and collateralized options. Again, I am unsure what this means without a clear example.
One interesting explanation coming up in the video is that it is a decentralized exchange. So nobody owns the exchange, and the exchange is one of the biggest risk factors when storing value. That sounds like a great feature, but as far as implementation I am still unsure about it.
At the current time, there are too many details about this alt coin system that I do not understand. It does not appear to be a pump and dump alt coin as there does seem to be some new innovations here. How it all works it just too hard to understand to want to invest right now. This alt coin is not for me.
Do you understand BitSharesX? Please leave a comment so we can further the discussion!