BitcoinSoV: The Deflationary, Proof-of-Work Store of Value Solution.
One of the most intriguing parts about the United States current economical landscape in today’s day and age, oddly enough, is its strength. There are certain things that you can’t ignore, and numbers certainly don’t lie. Jobs are being created at a record pace. The stock market has generally been healthy as of late, with a return of about 19% so far in 2019 for the S&P 500,which is considered to be one of the top performers in the financial world based on a yearly average return over the time period of 1926–2018, with an average return of about 10%. But if you zoom into that chart and cut down the average return over a 30 year period (1988–2018), the S&P 500 has not performed as well as you may think, with an average return of 7.46 %. This database shows that investors who held on from that same time period made even less, with only 5.14% reported earnings annually. But when comparing the S&P 500 to Bitcoin, it puts it to shame, to put it nicely.
Bitcoin, has handsomely rewarded its investors, with a return of 43,430% since the year 2011.
It seems that even when an asset (being a digital ledger with no physical form, an asset only available to those with the technological means to access it, definitely didn’t help its case) can create such a volatile bullish environment that creates a lot of buzz, skepticism still reigns supreme. One of the most basic concepts of Bitcoin, which is the foundation for the project I am presenting to you today, called BitcoinSoV, is it’s use of Blockchain technology to implement the Proof-of-Work algorithm hashcash to allow people to mine its reward for solutions. BitcoinSoV uses a different algorithm called the SHA-3 (Secure Hash Algorithm). Bitcoin was first used in a transaction between Satoshi Nakomoto and the first identifiable miner in Hal Finney, on January 9th, 2009. These algorithms require immense computing power to solve, and this is where the value of Bitcoin is derived from. Sure, there are other factors that weigh into its value, such as the demand, and even the supply (it’s estimated that over 2 million Bitcoin may be lost) which can fluctuate. But make no mistake; this is an asset which has the ability to outweigh the scarcity of any precious metal or stock — the cost for miners to mine Bitcoin was roughly $4,758 per coin in 2018— when considering how hard and costly it is to attain.
What might be considered the most interesting part about what makes these coins valuable is what separates them from the assets which are generally perceived as a store of value, or object of monetary value. Bitcoin, along with other mine-able tokens, such as BitcoinSov, are distrubted as a ledger to those who contribute to solving the algorithm. This blockchain is a storage database of merkle trees that store transaction information which can only be recorded and attained by contributing enough computing power to find the solution and create the ability to solve another block, and thus in turn unlock the ability to progress through the chain. Without the appropriate amount of computing power, attaining Bitcoin would not be possible. You can also argue that how it is attained is a contributing factor to how it is valuated attained in a different but less impactful way. A vast majority of the population does not have the means to do so on their own. While this can be viewed in a negative light as well, there is no denying that this could be a contributing factor to its valuation.
But how does BitcoinSoV become a store of value instead of just another collectible asset whose value is strictly determined on its demand? Bomb token is an ERC20 token which consists of the deployment of 1,000,000 coins. You are able to purchase coins off of exchanges or by participating in the #Bombup campaign on social media. They are an experiment which tests the possibility of using a deflationary currency as a hedge against hyperinflation of fiat. It is not meant for heavy transaction use and is considered a store of value. BitcoinSoV has implemented this ongoing experiment onto another concept which BitcoinSoV borrowed, 0xBTC. 0xBTC is Bitcoin made for Ethereums blockchain utilizing the ERC918 mine-able token specification, which allows you to mine an ERC20 token on Ethereums blockchain. With these two innovative project as the inspiration for BSoV, a developer named Mundo launched the contract on June 17 2019, with no initial announcement. There was no pre-mine, no developer fees, or initial token offering. With the combination of the innovation of Bitcoin, 0xBTC, and Bomb token, BitcoinSoV aims to be the first mine-able, deflationary cryptocurrency to act as the first open-source community driven hedge against the inflation of fiat currency.
BitcoinSoV presents a possible solution to the problem with inflation which has inevitably and negatively effected the worlds currency, the United States dollar. The strength of the US economy has been strong since the crash in 08', but there are telltale signs that another economical downfall may be on the horizon. Interest rates are down. The reduction of interest rates have historically preceded economical stress. With international trade policies being negotiated and targeted, along with one of the biggest economies in the world being labeled as a manipulator of currency, its not unreasonable to question whether or not inflation could become a very hard problem to solve if the economy caved in from this stress.
While BitcoinSoV doesn’t present itself as a replacement for fiat currency, it is important to consider the token is of scarcity and subject to deflation. It is also broken to 8 decimal places, so it can be distributed and adjusted according to the inflationary value of the fiat currency it is leveraged against to compensate for its finite total supply of 21,000,000 BSoV minus total amount burned = total supply (currently 20,981,510 BSoV). As of the writing of this article, the circulating supply is 1,765,800 BSoV. We believe that it is important to consider that it may take time to build a large valuation, which is why a group of community members who were some of the first to mine have donated 57,000 BSoV to a time-lock contract which holds and locks the token for 180 days. The early miners believe that it is important to show the commitment of the community to ensuring this token maintains its progression to become a store of value.
With so many new projects being created in the cryptocurrency space, the hardest thing to do is stand out. Innovation is on this projects side and it has the opportunity to become a true player in the game. The token has already built a solid mining history, with blocks being mined steadily since the contracts launch in June. This project provides a tremendous opportunity at a fair start cryptocurrency which can provide a unique solution that isn’t presented elsewhere. With an algorithm difficulty of almost 2 million, it isn’t to late to jump in and become a part of a project which provides true value. We know have 395 holders with this token. The word has spread and this article was created to help readers understand what this token is and why it is a Store of Value. Check out btcsov.com to learn more and start mining.