What is Bytecoin? In 2012 Bytecoin (BCN) was introduced to the
market. It is one of the oldest altcoins. It was created as an open-source project by a group of
anonymous programmers. This currency was developed from the original Bitcoin
However, Bytecoin brought a number of innovations in relation to
Bitcoin, especially on transaction anonymity
features. In addition, this altcoin is different in terms of coin mining and
Its market capitalization value is $52,327,858 USD, which makes BCN the
81st largest cryptocurrency. In its eight years of existence, Bytecoin has gone
through ups and downs. It could be a
promising investment in 2020.
As part of Cripto InterCambio’sCrypto-Diversity Programwe are going to explain what Bytecoin is. As part of this program, we offer the commission-free trading of selected altcoins, as well as exclusive content about them. We will list BNC’s main characteristics and discuss its investment prospects.
is Bytecoin – Main Features
Bytecoin is also the name of the company responsible for the programming, development, and maintenance of this cryptocurrency. However, it has no control over the transactions made on its network.
As with most
cryptocurrencies, its transactions are not verified by a central network. In
fact, all transactions are made through a blockchain network which spans
thousands of computers worldwide (the so-called “nodes“). In this sense, the Bytecoin system is very similar to
The inability to track
transactions made with BCN is undoubtedly the biggest difference of this
It is easier to
understand this concept through the perspective of Bitcoin, whose transactions
are not completely anonymous. All transactions made with Bitcoin are shown in a
kind of public spreadsheet, which is used by the nodes to check their validity.
There, transactions between virtual wallets are recorded.
This, in turn, makes
transactions traceable. Although having a virtual wallet requires no
registration, it is not very difficult to identify the IP address of a
particular wallet. For this reason, the user’s real identity can be exposed.
With that in
mind, the Bytecoin team thought of a different system. Instead of a public
spreadsheet, BCN uses CryptoNote.
Basically, when making a transaction with Bytecoins, keys are generated. These
keys will be used by the nodes to validate the transactions.
Bitcoin, these keys are only used once.
In addition, it mixes several transactions under the same key. In this way, it
is virtually impossible to track from which wallet a particular transaction
For users who
want even more security, it is possible to add more than one key in the same
transaction. However, this increases the cost.
Bitcoin mining gives the advantage to
extremely powerful computers, which ends up favoring large investors and
centralizing the network.
In order to avoid this, Bytecoin uses the Proof of Work system. This is a
mechanism similar to Bitcoin’s, where computers solve puzzles to validate
transactions. However, such an algorithm limits the difference between
extremely powerful computers and common PCs, allowing individual users to
benefit from the mining process.
Bytecoin has been in circulation for a long time, approximately 99% of all BCNs
have already been mined. This means that there are currently more than 184.000
million tokens in circulation in the crypto world and that new coins are rarely
reason, the main way nodes benefit from this cryptocurrency is through network
Bytecoin: is it worth investing in Bytecoin?
Is it worth investing in Bytecoin? As
there is a large number of tokens available on the market, this is a cheap
cryptocurrency: its price is $0.000281 USD per unit.
When this cryptocurrency was
put into circulation, its value was $0.000055 USD per unit.
Between 2012 and early 2017,
its price variation was relatively small, and BCN rarely exceeded $0.0001 USD.
In 2017, things began to
change. As Bitcoin prices went up, other altcoins also increased in value. In
May 2017, the currency reached a maximum of $0.0032 USD per unit.
Its historic high was during
the so-called spring of the altcoins – after the explosion of the Bitcoin
bubble in 2017. At that time, investors began to invest in other
cryptocurrencies. In January 2018, BCN reached its all-time high: $0.016 USD
Also, during 2018, the BCN
price collapsed to $0.0020 USD in April and rose again to $0.010 USD in May.
This was the last peak.
Since then, BCN’s value has
never returned to such high levels. 2019 was a difficult year for this
currency. Then it began trading below $0.001 USD. This is its current
Invest in Bytecoin in 2020
Bytecoin is a very old cryptocurrency, which reached peak price
during 2017 and 2018. The 2019 bear market may seem daunting, but it is not
impossible to reverse this trend.
The long history of this project is very relevant in this regard.
Eight years have been reached by few. BCN operated at lower values than the
current cryptocurrencies during its first five years of existence and it is
still active. The cryptocurrency has a committed user community and is a
consistent project that is constantly updated.
In fact, one could even speak of an undervaluation of this
cryptocurrency today. Bytecoin has continued to improve its project, establish
new partnerships, and achieve greater adoption despite its price drop. In this
sense, the project possess positive elements for a short or medium-term price
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