A new Bitcoin HarFork has been announced to begin next January 22. It is Bitcoin Interest, and about this new bifurcation we will talk in this post. Let’s go into matter:
Bitcoin Interest is defined on its website as the continuation of the Bitcoin project as peer-to-peer digital money. It is a bifurcation of Bitcoin’s blockchain ledger with improved consensus rules that allow the user to earn revenue from their parked currencies. Bitcoin Interest will fork on January 22, 2018 at 11:59 p.m. GMT, more specifically in block 505083.
One of the main justifications for this bifurcation is trust. Consumer confidence has been a great barrier to the widespread adoption of new currencies. People do not buy what they do not understand. Unlike other Bitcoin bifurcations, the recently announced Bitcoin Interest seeks to encourage a high degree of consumer confidence because it is introducing a familiar financial product in the virtual currency market.
Bitcoin Interest offers a secure and familiar financial service for holders of virtual currencies. This familiarity will attract the most risk-adverse investors who have so far fled the virtual currency markets.
Bank accounts that accrue interest are a benefit enjoyed by most traditional banking clients. Bitcoin Interest now gives virtual currency users access to these same benefits and this is undoubtedly a valuable attraction that augurs an important welcome in the crypto environment.
Bitcoin interest holders earn interest based on the number of currencies parked in their accounts. Holders of a Bitcoin Interest currency can receive weekly or monthly interest paid on their currency holdings in the form of Bitcoin Interest Coins (“BCI”).
Bitcoin Interest will focus on fast transactions without friction, being able to handle many transactions per second while reducing bottlenecks and delaying the inherited version of Bitcoin.
Bitcoin Interest is an Equihash Enhanced Job Test (“PoW”) algorithm and will start with a much lower mining difficulty than Bitcoin, allowing miners in the community to benefit from greater rewards. When using the GPU extraction, we will see a more decentralized network since none of the smaller miners will be excluded. Bitcoin Interest wants to minimize the advantage that hardware miners (such as ASICs) have over basic hardware configurations.
The Bitcoin Interest saving technology allows holders of these currencies to park their properties and earn weekly or monthly interest in the form of Bitcoin Interest currencies (“BCI”). Is that how it works:
- Interest group: each Bitcoin block of interest (“BCI”) has two rewards; 12.5 BCI coins are generated for the miners for their participation in the resolution of blocks, and an additional currency reward of 1.08 BCI is generated and sent to the interest group to facilitate the payment of interest. This is achieved through what is called “Improved Work Testing” using the Equihash algorithm. This configuration will ensure that interest payments are always available to those who choose to participate in the parking of their BCI currencies.
- Interest rates: the best part of Bitcoin’s interest (“BCI”) is that there is no established interest rate. The interest rate depends on how many BCI currencies you park and how many other BCI currencies are parked in the active interest round. At the end of the interest round, the system will proportionally distribute the balance of the interest group to those who parked their currencies.
- Two interest cycles: with Bitcoin Interest (“BCI”) you can choose a weekly or monthly interest period to park your coins and claim your share of the collective interest group. When you decide to park your BCI coins, you agree not to move your coins until the current round has ended. If you choose to move your BCI currencies before the round is over, you will not receive an interest payment, so it is best for you to lock your coins during the round. The weekly interest round uses 30% of the balance of the interest fund for payments while the monthly interest round uses the remaining 70% of the group’s balance for payments. The download of the Bitcoin Interest wallet will be available soon, as is announced on the official website.
To claim your BCI currencies after HardFork, insert your BTC private key into your BCI wallet. Another option would be to transfer your BTCs to an exchange that will support the Bitcoin Interest fork in the launch and simply keep your BTCs there. They must credit their account automatically after the fork.
Exchanges available for this moments: HitBtc, and Okex. All transactions subsequent to the division of the ledger on January 22 will be completely separated between Bitcoin and Bitcoin Interest.
Bitcoin Interest will ultimately offer features of virtual currency with interests reminiscent of a traditional bank account. This is an innovative way to present a family financial service to a new group of customers, and creates real value for a market that has been plagued by high volatility and low consumer confidence, realities that can only improve with good performance.