BitShares
BitShares cryptocurrency guide advises where to buy and how to buy BitShares. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about BitShares as well its status in the world of cryptocurrencies.
BitShares, Wednesday, 2023-05-10
Contents
BitShares is an open-source, blockchain based and public financial platform that provides users with a decentralized asset exchange. The platform is the work of a cryptographic and computing expert, Daniel Larimer, who was not contented with the way trading at the standard exchanges was taking place. Of primary focus was some of the requirements by cryptocurrencies that users verify transactions using personal details. The implication of such exposure is the loss of privacy. The transactions were also slow and had very limited applications for users.
When Bitcoin debuted early in 2009, the main focus was offering a decentralized payment model. About six years later, Ethereum introduced the concept of smart contracts that almost swept everybody in the crypto industry off their feet. Now, BitShares has built on the decentralized model of Bitcoin and factored the innovations of Ethereum to present the next generation platform that could define the future of the cryptocurrency industry.
BitShares makes it easy for traders to convert their cryptocurrencies to stable assets such as BitUSD that are tied to fiat currencies. It also allows users to trade without having to provide personal details apart from what they use on the BitShare clients. BitShares is also a cryptocurrency, a network, a decentralized exchange, and a hatching point for innovation. It is a complete ecosystem that the crypto industry requires to grow. Here are some of the top details about the transactions and a comprehensive look at this crypto network that is promising to revolutionize the blockchain industry.
- BitShares system block time is 3 seconds.
- The network employs Delegated Proof-of-Stake (DPoS) consensus model.
- The network has a maximum BTS coins supply is 3.6 billion.
- The maximum transaction per second is 100,000. However, the proven transactions/second is 3,400.
- Operates under the open source MIT license.
Are you looking forward to joining the cryptocurrency industry? The first step is selecting an appropriate crypto network. Here, you should evaluate the potential of the selected network for assurance of high ROI (Return on Investment), security, and scalability. One option you should consider is BitShares. The cryptocurrency network was designed by Dan Larimer and has demonstrated the capacity to address issues that have dogged the crypto industry such as scalability.
To establish how effective BitShares is in guaranteeing higher ROI, it is important to comprehensively review it. This is the reason why this guide was created. The guide explores every concept about BitShares to answer all the questions or doubts you have about it. From what BitShares are to its history, everything is articulately captured in this guide.
Welcome to discover the where to buy and sell BTS, mining, value, regulation, and key advantages of joining the network among others.
When people hear of BitShares, the first impression is that they have finally gotten the cryptocurrency platform that they can use without worrying of market volatility. With the network being marketed as the better option in the market today, the next thing that people want to know is how to own the native BitShares (BTS tokens). The best way to get BitShares is buying. The following are the main places where to buy BitShares.
- Cryptocurrency exchanges: These are the primary platforms that bring together buyers and sellers of cryptocurrencies. Like the forex markets, these platforms are driven by market forces of demand and supply. Note that most of the exchanges will require you to open a trading account and verify it with personal details before being able to purchase BitShares and other listed assets. Great examples, in this case, include Coinspot, Cryptopia, and Binance.
- Note that if you opt to use a trading exchange that does not accept credit cards or fiat currencies such as Binance, you will need to start from another platform such as CEX.io to purchase an alternative asset such as Bitcoin. Then, exchange the alternative coins at the selected exchange for BitShares.
- Purchase BitShares from those who already have them: The fast-growing popularity of cryptocurrencies has resulted to the emergence of crypto clubs. These are special groups that help to bring together cryptocurrency holders, community, and enthusiasts to come and share information about cryptocurrencies. These clubs have now become important points to identify those who want to sell and trade their assets.
- Unlike the standard cryptocurrency exchanges, the clubs simply bring you together and it is up to you to agree on terms of payment. This means you can agree for payment to be made in fiat, credit cards, or even hard assets. Some great examples of crypto clubs include Crypto Club or Crypto Code Club.
NOTE that no matter the option you select to buy BTS, you will need to have the right cryptocurrency wallet. The next section takes a closer look at the BitShares wallet.
The moment you decide to join the BitShares network, one must have thing is a cryptocurrency wallet. This is a digital location that will help to point at your BTS in the network and facilitate sending of value. Here, it is important to demystify the term digital wallet, because the definition is indeed a misconception.
While the above definition is the accepted one in the cryptocurrency realms, you need to appreciate that the native BTS in the BitShares system do not leave the network. Therefore, they cannot move out of the network. Even when you send the coins, what changes hands is identity, but the coins do not leave the network.
After selecting the preferred BitShares wallet, what they store are special codes that point to your assets and transactions in the network. The first code is the private keys. This code points at the coins in the network and calls them to live when making transactions. Like the name suggests, this code is private and should not be shared with third parties.
The second code is the public keys. These are the codes that you give those who want to pay you in BTS. The public keys are also used to help confirm the transactions. This code can be shared with the public without worrying about getting attacked.
The last code generated by the wallet is the seed phrase. This is a special code that is used to regenerate the private keys in the case of a loss. It is very important that the private keys and the seed are stored away from the main computer. The main BitShares wallets you can consider include;
- BitShares Desktop Wallet.
- BitShare Lightweight Wallet.
Credit cards are some of the top payment methods in the globe today. Because they are accepted in both conventional and online marketplaces, no one wants to live without them. So crucial are the cards that most credit reference agencies will insist to have a look in order to calculate credit ratings. Now, you can also use the credit cards to buy tokens such as BTS. You can buy BTS tokens with credit cards at CoinSpot. For those who want to trade at Poloniex or Binance among other exchanges that do not accept credit cards, the option is starting from another platform such as CEX.io and Coinbase and buy alternative coins such as Ethereum or Bitcoin. Finally, exchange the alternative coins with BTS.
There is no direct method of buying BitShares with PayPal. Though PayPal has indicated that it will start allowing payment to cryptocurrency networks, it is not until such policy changes are effected that direct transactions will be possible.
PayPal had all along been considering cryptocurrency systems as direct competitors and even punished its users found to be linked with them. To buy BTS with PayPal, you have to follow the longer route. This means offloading the funds to channels such as banks and credit cards that are accepted in the crypto networks. Then, buy BTS from there.
For many years, people have developed special connections to their banks. No one wants to imagine a lifestyle without a bank account. Banks are trusted to process wages, provide credit and even hold people’s savings. Now, users can also buy crypto assets such as BTS with a wire transfer. Here is the procedure to follow.
- Start by acquiring an appropriate cryptocurrency wallet. Wallets are digital locations that will hold BTS after the transactions are completed. The wallets will also help to facilitate trading BitShares in different markets.
- Top your bank account with funds equivalent to the quantity of BTS that you want to buy. Make sure to also include the cost of transitions.
- Select a trading account that allows traders to buy BTS using wire transfer. One great example is CoinSpot. However, if you want to use markets such as Binance, the procedure has to commence from another platform such as CEX.io or LocalBitcoins.com.
- On the trading platform’s User Interface, select BTS and hit pay with a wire transfer. If you are buying an alternative cryptocurrency, select the equivalent number of coins and hit pay with Wire Transfer. This will shift the transaction into a pending mode until the cash flows from the bank to the trading exchange account.
- When the transition is finally completed in 1-3 days, the BTS or alternative coins will be deposited in the trading account. If you had bought Bitcoins or Ethereum, exchange them for BTS at another exchange. Now, you need to move the coins to the wallet because they are at a great risk in the exchange.
If you have some BitShares and want to make more from them, the best method is trading in the markets. These are platforms that allow users to trade crypto assets based on market forces. When selecting a platform to trade and sell BTS, it is important to appreciate that they are the primary targets for hackers who want to steal crypto assets from users. Since 2009 when Satoshi Nakamoto launched Bitcoin, most of the reported losses have taken place at the exchanges. The most recent of these attacks happened at a Japanese crypto exchange, Coincheck, in January 2018.
To be sure of trading securely and make more from the markets, you need to select the best exchanges. Be analytical and target only the platforms that have demonstrated the capability to operate securely without risking the traders and their assets. Here are additional tips you can use to pick the best trading and selling platforms.
- Go for a platform with an easy to use and intuitive UI (user interface).
- Select the exchange that puts a lot of emphasis on security. Here you might need to check things such as two-factor authentication, moving the clients’ assets to cold storage, and even insurance.
- Only select the exchanges that have a low transaction fee. This will allow you to keep the bulk of the profits made when trading in the platform.
- The ideal platform should list a lot of cryptocurrencies so that you will always have a profitable pair to jump if the present one is unfavorable.
- If you will be moving a lot of BTS on the platform, it is advisable to look for the one that does not have a lot of restrictions.
Note that most trading platforms where you can sell and trade BitShares are still centralized. This implies that they are operated under local laws that require users to open trading accounts and verify them with government recognized details such as phone number. Some of the top platforms to trade and sell BitShares include Binance, KuCoin, CoinSpot, Poloniex, and Cryptopia.
One of the main reasons why Dan Larimer created BitShares was helping to pull down the cost of sending value. At the BitShares network, the system employs the delegated proof-of-stake algorithm that makes the involved cost variable. This main purpose of the fee is helping to meet the cost of propagating and validating the costs. The lowest fee of Bitshares network is dependent on the delegate that charges the lowest amount. For better performance, you should target to pay the amount equal to what the highest charging delegate is asking. The minimum transaction cost for a transaction on the network has been 0.1 BTS.
Since 2009 when Bitcoin debuted into the market, the markets have grown very fast to maintain pace with the fast emerging cryptocurrencies. Because BitShares have been in the market for longer, they are considered more stable and a lot of markets have listed them. Here are some of the markets where you can buy, sell, and trade BitShares.
1) Binance
- This is among the leading cryptocurrency exchanges in the market today. It was started in mid-2017 by Changpeng Zhao with the primary goal being to make trading easy, cheap, and direct. To achieve this noble objective, Zhao also released a Binance native coin referred as BNB (Binance Coin).
- Binance is preferred by many BitShares traders because it lists a lot of cryptocurrencies. This means that you will always have a more profitable asset to pair with BTS at any one specific time. Besides, the trading platform is one of the cheapest in the market today. To trade BTS at Binance, you are only charged a flat fee of 0.1%. This is not all. You can even pull down the cost by 50% if you trade BTS with BNB or pay the transaction fee in BNB.
- The biggest shortcoming of Binance market is that it is a crypto-to-crypto platform only. This implies that people with cash in their bank accounts have to start from a different platform that accepts fiat. Great examples include CEX.io and LocalBitcoins.com.
2) Poloniex
- Poloniex, also referred as Polo in crypto cycles, is a US-based trading crypto exchange. It was started in 2014 and has since grown to become a top crypto trading platform around the globe. The main selling point of the trading platform is its large number of listed cryptocurrencies. This means that whether you prefer trading the more established assets or the newer ones, Poloniex will never miss a profitable option.
- The exchange places a lot of effort on traders’ security. Immediately when you move your BTS to the platform, 70% of them are relocated to cold storage. This means that only about 30% of the assets are available for sale at any specific moment. If additional assets are needed, they are only pulled from cold storage on demand. In the event of an attack, it means that only 30% of the assets would be at risk.
- The trading fee at the exchange is 0.25%. This is on a higher end when compared to other platforms such as Binance that are charging users as low as 0.05%. This is not the only drawback of using the exchange. As a crypto-to-crypto trading platform, it means that users who have fiat currencies or funds in the credit cards have to start from other exchanges such as Changelly.
3) Cryptopia
- This is a cryptocurrency trading platform with its headquarters in Christchurch, New Zealand. The exchange has been growing rapidly because of the fast-rising demand for cryptocurrencies in the Far East. It is preferred by many BTS users because of its unique features.
- To trade at the exchange, users are required to open and run trading accounts. The accounts are categorized on the basis of the amount you can withdraw on any 24-hour cycle. At the lowest verification level, you can only withdraw $5000 while the highest one allows users to withdraw up to $500,000. To withdraw more than that, you have to place a special request to the management of the exchange.
- The exchange also serves as a marketplace that allows users to make direct purchases with their crypto assets. This is very helpful because you can cut costs associated with converting crypto assets to fiats and associated inconveniences when doing shopping. Note that you can only buy from the stores that are listed in the exchange.
- The biggest challenge of using Cryptopia is its preference for local traders. For example, those who want to use fiat can only use New Zealand dollars. This means that you should check whether the exchange allows traders from your geo-region to trade in the market.
4) CoinSpot
- This is an Australian based cryptocurrency market that has won the affection of many for allowing traders to use fiat currencies. This makes it one of the top options for new crypto enthusiasts who want to join the industry. Though it allows traders from all over the globe to join and trade, the first step is creating CoinSpot trading accounts and verifying them in line with the AML-CFT (Anti-Money laundering and counter-terrorism financing) regulations. This means traders’ identify must be verified before trading and using the exchange.
- The platform lists very many cryptocurrencies. Whether you prefer the emerging digital assets or more established cryptocurrencies to pair with BTS, CoinSpot is one option to consider. Besides, it also provides advanced trading metrics so that users can follow and make the right moves for higher profitability.
- Unlike other cryptocurrencies that have a standard fee, CoinSpot charges are based on individual cryptocurrencies. For example, market orders for BTC, DOGE, and Ethereum, are charged 0.25%. However, the cost for withdrawing coins to wallets outside CoinSpot varies depending on the coins.
BitShares has recently experienced a surge in its value. Even though some people have indicated that its price is still relatively low compared to other crypto assets that were created between 2013 and 2015, it has demonstrated the capacity to grow and catch up with time. On 3rd April 2018, the market capitalization of BitShares was $920,762,346 at a price of $0.351 and circulating supply of 2,621,380,000 coins. This value places it well ahead of other cryptocurrencies including Populous, Waves, and Bitcoin Diamond. The highest peak of BitShares value took a place in early January 2018 with market cap of $2.3 billion and price of $0.87.
Though the value of BitShares has remained below the one dollar mark for years, the crypto community appears in agreement that it could be the most profitable option in a couple of years. This is mainly pegged on the fact that the cryptocurrency is already implementing dPoS consensus model and has the capacity to complete thousands of transactions every second. This means that it has achieved what Ethereum has been dreaming of and addressed the scalability issues at Bitcoin.
Between May of 2017 and May of 2018, about one year, the value of BitShares has grown with a whopping 600%. This growth is expected to continue as more people troop from top cryptocurrencies that are thought to have hit climax or only achieving very limited growth.
Note that profitability of a cryptocurrency is dependent on the prevailing factors such as the looming regulations and entry of more appealing cryptocurrencies.
Every crypto network out there is working extra hard to get recognized by traders. BTS is one of the main coins that you can use to make direct purchases especially through Coingate. This is a cryptocurrency exchange that runs multiple plugins extensions for e-commerce shopping carts. You simply need to check whether the store allows Coingate.
BitShares can become a major payment network. The cryptocurrency industry is pegged on the promise that it will pull down the cost of transactions for users when sending funds or making payments. BitShares has leveraged this promise in three ways that raise its ability to become a major payment network.
- The cost of transactions is very small. It is indeed lower compared to what Bitcoin, Ethereum, and the top networks charge.
- It has addressed the problem of scalability by supporting thousands of transactions per second. The development team indicates that the network has a capacity of running up to 100,000 transactions per second.
- The crypto network has partnered with payment services that help to make its coins acceptable in more stores. Its efforts for bringing top companies such as Microsoft and Fox have strongly enhanced its image.
- The faster transaction processing capacity means that traders can easily use the network because payment can be processed in only 1.5 - 3 seconds.
- The cryptocurrency’s community has been growing rapidly. A bigger following is likely to also use the network for making payment.
BitShares platform was designed to help users customize it to suit individual situations. It employs the delegated PoS consensus model with the primary aim of creating a complete ecosystem. A closer look at BitShares reveals that it is like a purist type of currency because the BTS token can be applied as collateral for decentralized services on the network such as smart contracts, derivative creation, and decentralized exchanges. Here are the main features used in the BitShares network.
- Decentralized Asset Exchange: BitShares allows users in its network to trade in its decentralized exchange (DEX). The main idea of using DEX in BitShares is to remove the single point of failure and counterparty risk. This is achieved by ensuring there is no access to users’ private keys at the exchange level so that traders are always in full control of their funds. The exchange is also more resistant to attacks.
- The dynamic account permission: All the accounts in the BitShares platform can be designed/ set so that they are controlled via multiple accounts. This represents the hierarchy of conventional organizations where funds can be controlled by a number of personalities. Such hierarchical control makes it more difficult to hacking and theft.
- The BitShares rewards program: The BitShares blockchain has an inbuilt referral system for rewarding those who introduce new users. A larger number of users can help to keep the network more secure.
- User issued assets and smartcoins: When you join the BitShares network, you are allowed to create own tokens. It operates the same way that Ethereum ecosystem works. You can define the tokens, describe them, name them, run ICO, and set the trading fees.
- The network also works with Smartcoins which are special tokens whose value is adjusted to match that of real assets such as USD, company shares, or precious metal. This implies that the value of the Smartcoins will be less prone to the market forces that have been forcing crypto assets to the extremes.
- The project funding pool: BitShares runs a reserve pool that collects and holds the transaction fees. The funds from the pool are meant for helping with network improvement and maintenance. It can also be used to fund projects that voters in the network must vote to approve or decline.
Yes, BitShares uses blockchain technology. The blockchain technology at BitShares helps to eliminate the third parties such as banks and other financial service providers to give users absolute control over their operations in the network.
The blockchain was targeted at delivering industrial performance and guarantee a higher number of transactions per second. It employs Graphene high-performance system that can handle up to 100,000 TPS (Transactions Per Second). This means that the network is able to handle even more transactions that current market leaders such as Visa and Master Card.
When users in the BitShares network initiate transactions, they are picked by the system and then get distributed to the witnesses that help to confirm them and add new blocks to the public ledger. The witnesses follow back the public addresses to confirm that the user has ample BTS to spend. Note that the transactions on the network do not simply involve sending funds. Rather, they can involve borrowing and smart contracts.
BitShares employs delegated proof-of-stake consensus model that utilizes a voting system for controlling all the network parameters including block intervals, transaction fees, and nodes to be involved in producing blocks. This means that there is no mining in the network. To participate in confirming transactions and get rewarded, you need to hold some stake in the BitShares network. Then, the nodes will vote to generate a list of nodes that help to produce blocks (witnesses).
The work of the witnesses is grouping transactions initiated in the network and combining them to form blocks. Then, the blocks are added into the BitShares public ledger in a chronological order. The witnesses get a chance of confirming transactions in turns. Every valid block that is added by a witness comes with a reward. However, failure to get valid blocks results in nonpayment and risk of getting voted out of the witness list. The list of witnesses is updated every day through voting.
What are the benefits of joining BitShares? This is one question that every person who wants to be part of this high potential network keeps asking. The platform allows users to operate without worrying about market volatility. By allowing users to tie the native cryptocurrency to a fiat currency, it means that investors can rest assured of enjoying all the benefits of BitShares without worrying of high market volatility that keep swinging the value of other digital assets to the extremes. Here are other advantages of joining BitShares.
- BitShares is built on Graphene high-performance blockchain that makes it possible to complete transactions in only 3 seconds.
- The network allows users to operate without worrying about third-party seizures.
- The BitShares system allows users to easily create their own tokens. This means that you now have an opportunity to also run a crypto asset and raise funds for your business.
- The cost of sending value on the network is very small compared to other top cryptos such as Bitcoin.
- The price of BTS has been growing steadily starting from early-2017 and it is expected to follow the trend in the coming months.
- The cryptocurrency community around BitShares has been growing progressively.
- It is led by a highly aggressive team that works on securing the network and crafting partnerships with other corporate entities.
- The network provides users with an opportunity to borrow funds for business.
While BitShares come with a lot of benefits, it is important to also appreciate that it also has a number of risks. As a decentralized peer2peer network, people are required to use private and public addresses when running transactions. These are lengthy codes that are very difficult to remember. Therefore, the risk of putting the wrong address and sending value to the wrong person is very high. Here are other risks associated with BitShares.
- The collateral risk of a sudden crash in asset value. The market pegged assets that track the price of the real asset via a derivative are not immune from price action that includes drop in value.
- The danger of getting attacked when operating in the BitShares network. Such risks can arise from the unforeseen breaches, exploits, software bugs, or breaches.
- The risk from looming regulations. Most administrations have vowed to pass harsh regulations to reduce the current high rates of tax avoidance by people in crypto networks.
- The threat of more advanced cryptocurrencies entering the market. Because of the current highly competitive nature of cryptocurrencies, there is a risk of more competitive networks emerging in future and lowering the appeal of BitShares.
- The cryptocurrency network does not have consumer protection. This means that even if you send BTS to the wrong address or have an issue with your account, there is nowhere to complain because the cryptocurrencies are not regulated.
Today, it is not uncommon to hear people say that their crypto coins have been lost. They can be lost at the network, wallet, or even exchange level. Have you ever asked yourself what happens when such losses happen?
- Loss through sending to the wrong address: The BTS have already changed hands and now belong to a new owner. However, they are still in the network.
- Loss through hacking: If a successful hacking attack is implemented, it means that the BTS are no longer yours. They have changed hands and the transaction cannot be reversed.
- Loss through damage to the BitShares wallet: In this case, the BTS are in reality not lost. They are still in the network under your name but in a dormant state.
- Loss through forgetting the private keys: If you lose the private keys, the BTS are considered lost because they cannot be called to live to make transactions. However, they are still in the network in a dormant state.
The topic of cryptocurrency regulation has become a hot potato issue at the local and international levels. At the local level, countries are feeling threatened because of their ability to collect taxes, control inflation, and stem capital outflow is compromised. At the international level, there are concerns that cryptocurrencies such as BTS could easily become untraceable conduits for fraud, money laundering, and even terror. However, no country had passed a cryptocurrency regulation by the first quarter of 2018. This implies that BitShares is legal in most countries.
Lack of comprehensive legal frameworks has made people start wondering whether there are stumbling blocks about on the way. It has now emerged that creating comprehensive legal frameworks is no easy task for most administrations; actually, for all the administrations. For example, the United States was the first to note the threats that come with cryptocurrencies such as BitShares about 10 years ago. However, it is still finding it hard to pass a legal framework. Here are some of the main obstacles that are making it difficult to the pass legal frameworks.
- The blockchain technology is growing very fast and many countries are forced to play catch-up when it comes to creating related regulations.
- Cryptocurrencies have demonstrated the capacity to address serious issues such as big data. Therefore, administrations are not rushing in blocking the main solutions to their issues.
- Cryptocurrency networks do not belong to a single entity. Rather, they are owned by nodes spread in the network across the globe. This makes it very difficult to craft regulations because individual states lack jurisdiction in other states. Besides, crafting a global legal framework is even harder than designing a local one.
One thing that every cryptocurrency enthusiast should appreciate is that though the laws have taken longer than expected, they will finally dawn. Therefore, it is important to be prepared for the possible shocks that could come with such regulations.
Yes, BitShares is legal. Many countries appear to be stuck at the basic level without knowing where to start in regulating cryptocurrencies. Even for those that have made some steps towards crafting some legal frameworks, it has not been smooth sailing. A lot of opposition has emerged from the fintech sector and the larger crypto community about governments passing crypto frameworks. Here is a closer look at the status of BitShares in different jurisdictions.
- The European Union
- European Union is one jurisdiction that appears still undecided on the approach to follow about cryptocurrency regulations. Different arms of the giant union have been releasing varying signals that appear to conflict. The first was the EU Central Bank. The bank cautioned all people with interest in cryptocurrencies to be careful because they are highly volatile and could cause aloft losses. However, the EU Parliament insisted that the cryptocurrencies be studied before an appropriate law is crafted and passed.
- Now, the EU leaders have joined the call for an urgent legal framework to prevent dangers such as total loss, high volatility, and the threat of networks attack by criminals. Germany, the UK, and France leadership have taken a common stand that a legal framework is needed urgently.
- Russia
- Russia, like the EU, was initially undecided on the approach to take about cryptocurrency regulation. Up to the end of 2017, Russia had indicated that it was not interested in regulating cryptocurrencies. However, the stance changed early in 2018 when the administration realized that the investment landscape was shifting in favor of crypto assets.
- The finance ministry and central bank of Russia worked extra hard to come-up with the Digital Financial Assets draft bill that sheds light on all niches of the cryptocurrency operations. For example, the draft bill defines digital assets and outlines the requirements for trading, mining, and use of ICOs.
- Singapore
- Singapore is one country that appears at peace with cryptocurrencies such as BitShares. The country’s administration and the fintech leadership appear in agreement that the risk of a Lehman Brothers type of financial slowdown with cryptocurrencies is very low. Even the Commercial Court appeared to take the same stand on legitimizing economic state in crypto related disputes.
- Despite this, the leadership has indicated that there is a need for enhanced customer protection. Because of the fast-growing crypto space, investors need to be protected from the threat of attacks. This stand became apparent after it emerged that the recent attack on Coincheck exchange in Japan was targeting the Singaporean based NEM.
- Netherlands
- As many countries are fast to note the threats that come with cryptocurrencies such as BitShares, Netherlands sees it differently. The country has indicated that blockchain technology’s time has come and no effort should be used trying to stop it. The minister of economics, Johann Schneider-Ammann has indicated that the country is sparing no effort in ensuring that the jurisdiction becomes a crypto-nation.
- The government has started by setting up an ICO working group and tasked it with the responsibility of crafting a legal framework to support the application of ICOs. The working group is also expected to help the administration come-up with other supportive legal recommendations that will attract and encourage crypto related investments.
Notably, most governments feel irked because cryptocurrencies such as BitShares allow users to run transactions anonymously. Most people hold the view that because they are able to operate anonymously, they cannot be reached by authorities such including as tax administrators. Therefore, they have taken the chance to live a tax-free lifestyle. However, experts are indicating that this approach is wrong. Though the cryptocurrencies might be anonymous today, newer technologies in the coming days could easily expose you. In such a case, you are likely to be sued for tax-related offenses including tax avoidance. To enjoy all the benefits of that come with BitShares, here are some useful tips to use.
- Treat income from BTS trading as taxable revenue.
- Make sure to capture both profitable and non-profitable BTS related trading when filing returns.
- For traders who accept payment in BTS, it is advisable to come-up with a way of capturing the details to articulately balance the books of accounts.
- Ensure that important details associated with trading in the exchanges are captured and stored well in case clarifications are needed. These details include BTS value at the point of trading, corresponding fiat, and volume.
No, BitShares does not have consumer protection. By operating as a decentralized system, it means that no single entity owns BitShares. Rather, the cryptocurrency network is owned by users spread in its network. This means that you do not have anywhere to complain to. It is even worse because the cryptocurrencies are not regulated. Therefore, you cannot go to a court of law. To operate safely on the BitShares network, here are some useful tips to guide you.
- Always countercheck the public address when sending the value in the BitShares system.
- Do not share the private keys with third parties.
- Keep the private keys and seed phrase away from the main computer.
- Ensure that the main computer and the BiShares are always up-to-date.
- Select the cryptocurrency trading exchanges with a lot of care.
- Always store the BTS in cold storage to reduce the danger of getting attacked.
- Make sure to always have a backup for the BitShares wallet and client.
When cryptocurrencies were discovered, many illegal traders believed they had finally gotten an avenue to defraud their targets. Because they are anonymous, criminals felt they could hide, run illegal schemes, commit fraud, and even issue fake tokens without being discovered. Despite the BitShares platform being an anonymous network, no illegal activity with BitShares had been reported by close of the first quarter of 2018.
BitShares is a secure network. Every cryptocurrency network out there is concerned about the security of its users. While the main focus of Daniel Larimer was to address scalability issues, the cryptocurrency network could not win the huge following it has today without being secure. Here are some of the methods used to guarantee users of utmost security in the BitShares system.
- Smart contracts that define the terms and conditions that must be met before transactions are implemented.
- Advanced encryption that helps to keep details of every user, transactions, and system from third parties.
- Progressive update of the core BitShares code. The target of the updates is to help clear bugs that target the network.
- The DPoS consensus model used at BitShares has helped to reduce the chances of the more coins falling into the hands of a few people and risking 51% attack.
Note that though BitShares has been working very hard to ensure that the system is anonymous and secure, you also need to play your part. You need to keep the computer with the BitShares client updated. The best thing is designating a specific computer for BitShares operations only. You should also avoid visiting risky sites, avoid sharing the private keys and maintain backups of every BitShares component in the network.
Every person coming to the cryptocurrency industry wants to hear that the transactions can be completed anonymously. BitShares was designed to help lever privacy at all levels of the network including trading. The decentralized application helps users to trade without having to provide additional private details that can be used to identify them. The anonymity system in the BitShares network is achieved through the following;
- Delegated Proof of Stake that facilitates deterministic selection of block producers.
- Advanced cryptography of all transaction details and user information in the network.
When hacking reports hit the news, the entire cryptocurrency community is thrown into shock. People start wondering whether they will be the next victims of hacking attacks. However, BitShares has never been hacked. This is an indicator that the cryptocurrency's core code is very strong and the development team is on top of the game to identify threats and addressing them with urgency.
Note that saying that BitShares has never been hacked does not indicate that it is not a target. The development team indicates that they identify multiple hacking attempts every month and do everything possible to seal any gaps. This means that no network is hacking proof.
It is not uncommon to hear people saying that they have lost their BTS. In many cases, the loss happens through sending to the wrong address. However, the loss can also happen through damage to the wallet or hacking. Though not all types of losses allow users to restore BitShares, here are some instances when you can restore the coins:
- Loss through forgetting the private keys: In this case, you need to regenerate the private keys using the seed phrase generated when you first used the BitShares wallet.
- Loss through damage to the BitShares wallet: Here, you need to reinstall the wallet from the backup. You can also get a similar wallet and reconcile it using the seed phrase and private keys.
If the loss happened through hacking or sending to the wrong address, there is no method that can be used to restore BTS. They are lost forever. The secret to succeeding in BitShares restoration is being prepared well before the loss takes place. Ensure to always backup the wallet, keep the core client updated, and do not share the private keys.
Though BitShares has been in the market for a long time, it is only recently that the community has come to appreciate the gem in it. The community has come to appreciate that BitShares had already achieved what most crypto networks are trying to figure out today. By joining the network, members of the community feel they are on the right path to faster growth and success in the crypto network. Here are other reasons why people trust BitShares.
- BitShares has been working on enhancing its image. With big corporates such as Microsoft and Fox indicating that BitShares is part of what will define the future, even those who had doubts are now developing trust in BitShares.
- The BitShares is an ecosystem that allows users to draw more value. They can send value at lower costs and even implement smart contracts.
- The development team is led by some of the top brains in the crypto industry. This is demonstrated by the ability to articulately predict what will happen and addressing issues affecting the current crypto industry with vitality.
- By employing the DPoS algorithm, the cryptocurrency has decentralized mining because people can mine with graphics cards.
- BitShares is marketed as a better option compared to other networks including Bitcoin and Ethereum.
- The model of pairing BTS with fiat currency to make it stable made a lot of people to feel relaxed when using the network because they are sure that their assets are protected from extreme market shifts.
The history of BitShares can be traced back to early days of Bitcoin when the founder, Dan Larimer started communicating with Satoshi Nakamoto.
- Between 2009 and 2012, Dan started communicating with Satoshi Nakamoto as he built interest in blockchain technology. He came to a conclusion that trading cryptocurrency networks was a big challenge and an urgent solution was necessary. It is at this point that the idea of BitShares was born.
- In June 2013, Dan Larimer found out that exchanging Bitcoin/fiat could be achieved without directly involving fiat currency. Instead, the process could be made possible through another token as far as it is in the same blockchain.
- After discussing the idea with other crypto enthusiasts, Larimer worked on a business plan which he shared with a Bitcoin tycoon called Xiaolai Li. Later in 2013, Larimer and Li founded Invictus Innovations. It is under the company that BitShares concept was presented in a Bitcoin Conference in Atlanta.
- By the close of 2013, Larimer wanted to create Bitshares X. This was a blockchain platform that could derive value from a built-in business. He was especially interested in a decentralized bank and an exchange. Noting that such development would be lengthy, Larimer designed PTS (ProtoShares). This was a Bitcoin Clone with tokens that could be upgraded to Bitshares. The first PTS block was mined in November 2013.
- In December 2013, Dan concluded that PoW mining centralized mining and made it impossible for people from areas with high energy costs. Therefore, he indicated that all his latter projects would use PoS that was simpler and more effective. PoS was introduced to Bitshares platform in December 2013 and implemented as delegated PoS.
- In March 2016, Microsoft partnered with BitShares. Microsoft added BitShares template page into its Azule Blockchain as a Service (BaaS).
- In February 2018, the latest version of BitShares (2.0.180202) was released.
- In March of 2017, the BitShares price hit the lowest mark of $0.0036. However, this also marked the begging of a sustained upward growth that peaked at $0.87 in on January 4th of 2018.
BitShares was created by Daniel Larimer. Larimer is a software programmer who is credited for other top projects including EOS, Steemit, and Cryptonomex. Note that Larimer was the creator of the Delegated Proof-of-Stake algorithm that is applied in BitShares and most of the other works associated with him.
Larimer studied for a Bachelor of Science in Computer Science at Virginia Polytechnic Institute and State University in 2003. Interest in blockchain technology started from the early days of Satoshi Nakamoto’s work. In the first few years of Bitcoin, Larimer’s communication with Nakamoto opened his eyes so much and he started seeing the challenges that faced trading cryptocurrencies. That is where he decided to stand up and craft a lasting solution.
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See Also
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