There is very little doubt in the fact that cryptocurrency space is booming at a tremendous rate right now. The rise of Bitcoin and Ethereum saw hundreds of cryptocurrencies flood the market, some of which were unique in terms of driving technology while others were simply attempting to mimic the behaviour of Bitcoin. There are also coins which have been around the block for quite some time now but went unnoticed up until the recent boom. One such coin is Bytecoin.
What is Bytecoin (BCN)?
Simply put, Bytecoin is a decentralised cryptocurrency with extra emphasis on anonymity and privacy. It has been developed on an open source code, thus allowing anyone to participate in the network development of Bytecoin. It is also the first cryptocurrency that has been developed using the CryptoNote technology.
Without getting too technical, all you have to know about CryptoNote technology is that it is far more opaque than Bitcoin’s blockchain. As you know, the ledger that is utilised by Bitcoin is publicly visible. Anyone can follow a transaction on the Bitcoin Blockchain and learn all the information pertaining to that transaction - sender, receiver, history of the transaction, and the actual amount of BTC sent. However, this is not possible with Bytecoin.
BCN has been designed in such a way you cannot track any of this information. Only the sender and the receiver will have access to all the details. The only information that is publicly available is whether the transaction is higher or lower than the displayed amount. Therefore, transactions in Bytecoin are private and anonymous.
As for the rest of the features, they are pretty much similar to other cryptocurrencies. The coin utilises an egalitarian proof of work system which means that all users are the same and no one is privileged. The algorithm combines CPU and GPU mining, thus ensuring that more miners can participate in the mining process without the risk of centralisation.
The block time in the case of Bytecoin is 120 seconds and the number of Bytecoins released into the system every 120 seconds is slightly decreasing based on a fixed formula. The total number of Bytecoins that can ever be is 184.46 billion.
Therefore, Bytecoin cryptocurrency offers its users a high level of privacy. As described above, it is suitable for those users who are looking to transact in cryptocurrency without leaving any trace on the blockchain. However, it is definitely not as popular and acceptable when compared to Bitcoin and Ethereum.
Where to buy Bytecoin?
Bytecoin is available for purchase some of the major cryptocurrency exchanges like HitBTC, Poloniex, Cryptonator, Coinspot, Changelly, et cetera. However, keep in mind that it is an altcoin and you will have to exchange it with either BTC or ETH.
Official Bytecoin wallet can be found on the official website of the coin. It is available for web and desktop, with a mobile version in the works. Alternately, you can store your Bytecoin in hardware wallets like Nano Ledger S and Trezor.
As described earlier, it is possible to mine Bytecoin. You can either opt for solo mining or pool mining, but in either case, you need to download the wallet and daemon from the downloads page. You will also have to download a couple of software to start mining. For more information, you can go through the mining guide published on the official website of Bytecoin.
Bytecoin Price Trends
At the time of writing this article, 1 BCN is worth approximately 0.005 USD. The token hasn’t witnessed a substantial rise in value. In the months of December and January, the price of BCN increased owing to the hype in the cryptocurrency space and crossed $0.01 mark. However, it failed to stabilise there. When the cryptocurrency bubble burst in early February, the price crashed and lost its recent gains in a matter of days.
Risks of investing in BCN
Even though Bytecoin promises privacy and anonymity, it is yet to gain traction like Bitcoin and Ether. Furthermore, it is a cryptocurrency by its very nature and is not immune to extreme volatility and regulatory hurdles.
Therefore, instead of risking your money in BCN, it is advisable to consider other investments like mutual funds.