BitGesell is a crypto project that has proven its dedication to overcoming the inherent shortcomings of Bitcoin through a decentralized architecture. In return, they have received unwavering support from the crypto ecosystem. With a continued rise on the crypto horizon and unique features like transactional coin burning, BGL has proven to be a coin that is truly equal to digital gold.
They are moving ahead in the crypto race at an exceptional pace, making a reputation for themselves as one of the top-most poster boys of the crypto world this year. This is mainly due to its ability to leverage its practical applications, providing appealing incentive propositions directly to investors, miners, and users.
BitGesell coin adds another win to its kitty by being the latest to join popular cryptocurrencies available for trading on HotBit Exchange, thus making it possible for anyone to own digital gold.
Is Bitcoin the Digital Twin of Gold?
Bitcoin has held on to its crown in the cryptocurrency industry quite firmly since the entirety of its existence, with an unrivaled volume of liquidity. However, there remain a few unanswered questions regarding Bitcoin’s future goals.
Bitcoin was originally intended to address issues of peer-to-peer digital transactions so that people could use it to pay for goods and services to each other. But with an increase in use, its peer-to-peer usage began facing scalability issues. Today, Bitcoin’s usage has diverted from its original intended purpose as its inherent deficiencies have not been fully addressed since the beginning.
Just three years ago, it was possible to transfer Bitcoin at a minimal to no cost. Today the situation has changed. With each surge in demand, the Bitcoin transaction network is becoming so congested that it leads to a fee war among Bitcoin users as they increase their bids to get their transactions confirmed before others. A few sources even claim that the average Bitcoin transaction fees have grown by 2,200% by 2020.
Bitcoin transactions have become speedier and cheaper with the advent of Lightning Network, a second-layer solution. But not all stakeholders agree that off-chain solutions will benefit the network’s miners. Even so, both Lightning Network and Segregated Witness are still far from mass adoption as only a few wallets and major service providers are compatible with these upgrades.
The current situation of Bitcoin has shattered its image of being an infallible cryptocurrency. Even the recent upgrades of Lightning Network and Scalability uptakes haven’t been able to solve Bitcoin’s inherent issues completely. The Bitcoin miners are facing a triple whammy as their block rewards have halved, transaction fees have trickled down to a negligible level over Lightning, and the block size from SegWit have increased too. All these combined issues have made it obvious to the miners that they won’t be able to cover miner fees through block subsidies alone anymore.
Why BGL Scarcity is a Turning Point For Deflationary Digital Gold
Emma Vu, Head Developer at BitGesell has outlined how each of Bitcoin’s shortcomings has been addressed by BGL. This process has ensured that its design remains fit for maintaining and growing its value as digital gold.
Unlike other crypto projects where central authority decides to burn the token, the burn feature is pre-programmed into BGL coin and thus the burning process is forced to happen with each transaction. The pre-programmed burn feature will ensure that almost 90% of every transaction fee sent to the miners will be destroyed. The coin burn process is thoroughly irrevocable and hence, the coins once burned cannot be regenerated.
The concept of token burning is based on supply and demand principles of economics. The core idea behind it is that a price equilibrium can be reached if the supply goes down and demand remains high. The scarcity of BitGesell coins increases with each transaction. Thus, it leads to a price equilibrium and it also makes the coin more valuable.
Both gold and national currencies have their share of disadvantages when compared to BitGesell coins. The worldwide extraction rate of gold is as low as 1.8% in annual terms. On the other hand, more and more national currencies are entering the market as money printing presses are printing out hard currencies at a very rapid pace. This leads to a steady increase in the inflation rate due to the courtesy of all the major assets and currencies of the world.
Bitcoin was designed to become a global deflationary currency as there will never be more than 21 million bitcoins. However, BGL outdoes Bitcoin in its own game as Bitcoin has several technical deficiencies that will lengthen Bitcoin’s scarcity process. It will take decades for Bitcoin’s scarcity feature to be fully implemented because of the technical deficiencies like low transaction fees and only once in a four-year halving process.
BGL is built on the Bitcoin source code and there will never be more than 21 million BGL at any time. The BGL token has smaller blocks, will burn faster and its halving time is also shorter compared to the Bitcoin. Once 21 million BGL coins are mined, the max supply will keep on dropping because of the ongoing burning process pre-programmed to occur with each transaction.
To sum up BGL’s superiority:
- BitGesell block size is only 10% of the Bitcoin block size. The combined advantages of smaller block sizes and higher transaction fees offer good compensation to the miners. It also ensures that only large transactions are undertaken which keeps the coin supply limited and promotes holding.
- The pre-programmed token burning feature offers increased security measures. 90% of all transaction fees paid to the miners will be destroyed permanently. This feature will ensure the removal of more coins from the fixed supply of BGL with every transaction.
- A prespecified community wallet exists in genesis block itself. Each of the first BitGesell block mines has been specified with a community wallet. It receives funds for supporting the further growth of the BitGesell project.
Anyone can view the transactions and balances of the community wallet on the blockchain. The usage of the funds is also reported to the community periodically. BGL is committed to build and expand the infrastructure of the BitGesell project.
BitGesell coins will have a maximum supply of 21 million coins and it also shares a trait of Bitcoin’s zero-emissions but BGL does all this in a matter of years, not decades.
Today’s Bitcoin holders won’t live to see the day Bitcoin will achieve its goal of zero emissions and live up to its reputation of being a digital gold. However, BitGesell holders will see BGL achieve all its promises within a mere few years.
Disclaimer: this is a paid for, sponsored article. BitGesell is the source of this content and is responsible for the content, and the accuracy of the content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. This article is for informational purposes only. The information does not constitute investment advice or an offer to invest.