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In Bitcoin’s history, there have been a number of forks along the way that have seeked to assist the original digital currency along its path. As issues continue to mount on Bitcoin’s network (including its high fees and slow transactions), this latest fork aims to solve these problems and more.
Bitcoin Interest, forked recently on January 19th 2018 at block height 505083, follows on from the likes of Bitcoin Cash (designed to be used more as a currency) and Bitcoin Gold (a fork to help GPU miners).
Bitcoin Interest is branching off to assist in the same ways that Bitcoin Cash and Gold have for the crypto community, but it is also adding weekly, or monthly, interest payments delivered in Bitcoin Interest (BCI) coins.
New financial step
Bitcoin, and other digital currencies, have always been attractive as an investment because of its monumental growth and the corresponding financial gains. However, many investors have felt that the lack of any form of accrued interest has been a bit of a letdown.
As people start to take cryptocurrencies more seriously as a financial investment, the need for interest seems far more warranted. With Bitcoin Interest, the users are able to earn interest on their holdings which is paid out in the form of BCI Coins.
Using newer networking technology, Bitcoin Interest is also hoping to create frictionless and speedy transactions as the new network will be able to handle many transactions per second.
Bitcoin Interest is an enhanced ‘Proof of Work Equihash’ algorithm and will start off with a mining difficulty that is lower than Bitcoin, allowing miners to benefit from higher rewards.
It appears that there is already keen interest in what Bitcoin Interest can offer as they have announced that HitBTC will open up a BTC/BCI trading pair. OKEx, a world-leading digital asset exchange also agreed to support the snapshot, however, whether or not they will support depositing, trading and withdrawal of BCI coins is yet to be seen based on the status of the Bitcoin Interest blockchain after the fork.
As Bitcoin continues to grow, it leaves behind many who flocked to the digital currency for certain reasons. For example, the difficulty in mining Bitcoin, the expensive and slow transaction speeds, and lack of accrued financial interest are all factors which leave investors searching for other options.
These exchanges have clearly noted that Bitcoin Interest has the potential offer an attractive alternative, and have therefore placed their support behind the fork.
How it works
Every Bitcoin Interest block has two rewards; 12.5 BCI coins are generated for the miners for their participation in solving the block, and an additional 1.08 BCI coin reward is generated and sent to the interest pool to facilitate interest payments.
The interest rate is based on two factors: How many BCI coins you decide to store, and how many other BCI coins are stored in the active interest round, be it weekly or monthly. After storing a set amount of coins, the Bitcoin Interest system will continuously check to ensure that they are kept there for the entirety of the interest round.
These interest cycles come around in weekly or monthly periods. This essentially locks in the coins for this period, enabling the interest to accrue.
Bitcoin has garnered a lot of support as the original digital currency in recent adoption waves, however, it has not been able to move as quickly to respond to the changing demands of the cryptocurrency community. In particular, the changes in its protocol often get stuck in community debates.
However, improvements in the form of altcoins and forks, are being developed quickly and offering immediate solutions for those seeking it. Bitcoin Interest offers a number of generally sought after improvements in the form of faster transaction speeds and lower transaction costs (as a currency) but also with its interest earning potential as a store of value.
You can find out more about Bitcoin Interest by visiting their website.Follow us on Telegram or subscribe to our newsletter here.
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