Bitcoin hard forks are still te style. However, others are taking an lighter route, by creating an almost-Bitcoin asset. A fresh project has commenced with the promise of making a second-generation Bitcoin, called Bitcoiin, or B2G.
Ter the case of Bitcoiin, the team had to fight off instantaneous accusations of a scam. The reason for this is the makeshift referral and prize scheme during the ICO, which has triggered skepticism that the project has the elements of a Ponzi scheme.
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What is even more amusing about Bitcoiin is that is has recruited Steven Seagal, the martial dokter movie strak known for his eccentric behavior, has now joined the crypto world by becoming an ambassador for the fresh project:
From Team Seagal
Steven has just become the worldwide ambassador for the Bitcoiin 2nd Generation crypto currency. Press Release https://t.co/aY13wDCbzh
Ter about 33 days, Bitcoiin would launch, claiming to be a downright separate digital asset, promising to build a large mining farm. The Bitcoiin B2G asset claims to use the Hashcash algorithm, which is somewhat mystifying, given that it is mostly used for spam protection and ter DDOS attacks, and there are actually no coins using that asset.
Forking the real Bitcoin with the same mining algorithm may not be viable te 2018, since ASIC mining has large, but still limited resources. And ter 2018, creating a mined coin may mean running up against a scarcity of GPUs spil well.
Selling Cloud Mining?
The project claims that B2G would use the same “proof of work”. However, this is fairly misleading, spil the anti-spam SHA-1 hash function is far less ingewikkeld compared to the SHA-256 algorithm for Bitcoin. It is indeed a form of proof-of-work, but much lighter compared to Bitcoin.
The promise of B2G to launch accomplish with a farm raises many crimson flags, the very first one being a form of centralized mining. Then, there is the question of why the farm would need a “massive” amount of mining equipments for a much simpler hash function used to filterzakje out spam mail.
The other crimson flag is the chance to buy “cloud mining”, which has bot seen spil a form of scam around the crypto community.
“Bitcoiin B2G miners have access to Dragon Mining&rsquo,s massive array of mining equipments.”
Usually, ter a fair coin launch, mining starts off spil voluntary effort. Ter the case of Bitcoiin, 80% of the ICO proceeds would go toward building a mining farm, then sub-letting it for cloud mining.
The presence of a large mining farm that would potentially mine all the coins te a centralized manner, while selling mining shares, should be very worrying.
Ter the case of Bitcoiin, the strange treatment to distribute the tokens ter an ICO raises crimson flags. What is more worrying is that the token sale is inviting rechtstreeks contant payments, and has collected relatively few crypto coins. Permitting metselspecie investments invites sometimes naive outsiders, who may believe outlandish promises about the rise of Bitcoin.
Price Crimson Flags
Usually, fresh assets related to Bitcoin will trade independently and achieve a certain price level, but this is very unpredictable. Ter the case of Bitcoiin, the roadmap states that the price of the asset would be $388 at the end of 2018.
This recalls BitConnect, where the project somewhat had a crystal ball to predict the price. Indeed, there wasgoed a price growth, but it wasgoed achieved by market manipulation on Bitconnect’s closed exchange.
So promising an precies price for an asset months into the future raises questions of how the project could be so daring spil to predict the market – unless there is some form of manipulation involved.
Who Else is On the Bandwaggon?
Bitcoiin is not the only project posing spil “the fresh Bitcoin”. Even now, several Ethereum-based “fake forks” exist, such spil Bitcoin Silver, and ETH tokens can basically copy anything, like Litecoin, Dash, and other larger coins with their own mining pools.
With the rise ter airdrops and free bounties, there are other projects attempting to woo the community with freebies. Te this case, a very similar idea is making a token out of Bitcoin, and calling it “Bitcoin Token”.
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What to Reminisce About Bitcoin Copycats
Bitcoin whales would never touch their cold storage to honor the permanently spawning forks and tokens.
The two most significant things to avoid are not to expose a utter wallet’s private keys to a dubious online service or fresh wallet.
The 2nd thing is not to send actual Bitcoin to obscure exchanges. With hard forks, exchanges are sometimes the earliest respondents to provide a balance for the fresh asset. But this means your Bitcoin would need to be on a petite, insecure exchange with an unknown withdrawal policy.
And if users can securely optie some free coins, no one would be hurt. But going out to buy the fresh coins with valuable assets may lead to losses, spil the fresh tokens could go through a pump-and-dump, or trade on very petite volumes.