BitShares, what is this stable, decentralized cryptocurrency?

Temps de lecture : 12 minutes

If you’re on this page, you’re probably a fan of crypto-currencies, especially Bitcoin. Bitcoin has many advantages over its competitors: it promotes transparency, for example, and is the world’s favorite currency for investors. But there are other aspects of Bitcoin that cloud its performance. While in theory Bitcoin claims to be decentralized, the reality is quite different.

So, it was initially with the aim of overcoming Bitcoin’s flaws that BitShares (BTS) emerged in 2014. Formerly ProtoShares (PTS), this crypto-currency is known for its security and stability. Its innovative blockchain and large market capitalization do not let the ecosystem go unnoticed.

If you want to invest without most of the risks, BitShares is the cryptocurrency for you!

In this article you will find out everything you need to know about the BitShares network.

Introducing BitShares (BTS) in a few figures

BitShares (BTS) price chart in dollars

BitShares price chart

Source : CoinMarketCap

Current price of BitShares

The price of BitShares has been trending upwards since the beginning of 2021. The BTS started the year at a value of around 0.02 dollars. Its highest price this year was reached on April 17 with a value exceeding 0.13 dollar. It then fell back down on April 24, with a value around 0.10 dollar. This event is very punctual and does not reflect the global trend of the BitShares price. In fact, the price has started to rise again. The price of BTS is currently fluctuating around 0.1 dollar and is accounting for nearly 15 million dollars of transactions every day, which is worth mentioning. This is an interesting development to take into account, especially when predicting the future price of BitShares. See the current price of other crypto-currencies.

BitShares price history

  • 2014: Upon its arrival on the cryptocurrency exchange in 2014, the price of BTS remained below the 0.01 dollar mark. From the end of August to the end of October of the same year, the price increased and reached the 0.2 dollar mark, before falling to stabilize around 0.01 dollar.
  • 2015: At the beginning of the year, the value of BitShares decreased, falling below the value of 0.01 dollar, for the rest of the year.
  • 2016: During 2016, the value of BitShares remained stable and always well below 0.01.
  • 2017: While 2017 started with a value still around 0.01 dollar, the rest of the year was more eventful. Starting in April, the value began to rise and reached its highest peak of this year in June, with a BTS for 0.32 dollar. This value then declined until it fell to 0.05 euro in early October. At the end of the same month, the price increased again.
  • 2018: In 2018, the price of BTS continued on this increase and even exceeded 0.79 dollar in January this year. In December 2018, the value of BTS went back down to 0.03 dollar.
  • 2019: BTS started 2019 with a value of $0.04. The overall trend for that year was rather downward for BitShares. BTS ended the year at a value of 0.01 dollar.
  • 2020: The year 2020 saw relatively little change in the price of BTS, such that it remained at around 0.01 dollar.

The listing of Bitshares

In 2014, BitShares was worth nearly $3.6 million (just over €3 million).

At the end of March 2021, the total value of the BTS currency was $228,959,797 (about 191,654,232 euros). As a result, BitShares is placed 157th in the ranking of the world’s most valuable cryptocurrencies. Today, its market capitalization is estimated on May 5, 2021 to be 387,082,109 million dollars (367 074 07 million euros) according to CoinMarketCap.

What factors affect the value of BitShares?

Like any cryptocurrency, the value of BitShares can change. Therefore, different factors should be considered before investing in this token. Especially since crypto-currencies are neither backed by states nor by companies.

We are introducing you to the main causes that can influence the value of BitShares.

The issuance of Bitshares tokens

The BitShares network offers its own currency, which is limited to 3.7 billion BTS. Such liquidity offers the possibility of establishing trading strategies, leading to inflows and outflows in the market and thus being able to fluctuate the price of BTC. By January 2021, there were 3 billion BTS in circulation, which is equivalent to 83% of BitShares’ issuance capacity. 

The law of supply and demande

Supply and demand obviously influence the token’s price. As with all other crypto-currencies, the more demand there is for BTS, the higher its price will go, and the same is true in the opposite case.

The reward for mining

The reward for mining also has an impact on the value of BitShares. Indeed, the more attractive the miner’s reward is, the more users will be interested in mining BTS. This brings us to our next point: the importance of the number of users.

The BTS’ token’s reputation

The more people on the BitShares network, the more likely it is that the value of the BTS will change, in this case increase, because blocks can be validated more quickly.

In addition, the values of other crypto-currencies, especially those directly competing with BTS influence the price of the latter. The price of the BTS token can thus change in the face of competition.

The number of trades and transactions of the cryptocurrency also drives the value of BitShares positively or negatively.

Current laws and regulations

Finally, regulations and laws surrounding cryptocurrency may restrict or further control certain cryptocurrencies’ activity. This will obviously affect the price of the token.

Bitshares’ forecast and future

BitShares has growth potential. In the first four years of its life, the value of BTS increased 10 times from its starting price. Furthermore, the decreases or increases in the price of BTS since 2014 are not unusual for the cryptocurrency environment. BitShares is a relatively stable cryptocurrency with little volatility.

TradingBeasts expects the value of the token to remain stable this year with a value of 0.15 dollar. The website expects a slight long-term increase in the token’s value over the next three years. For example, the BTS would reach 0.17 dollar by the end of 2022, 0.19 dollar in 2023 and 0.2 dollar in 2024. So it is a small increase that is expected, but an increase nonetheless.

Wallet Investor is more pessimistic about the future of BitShares. Indeed, according to its estimates, the price of BTS will almost always be below 0.1 dollar during the year 2024 for example.

However, it must be kept in mind that these predictions are made using algorithms that are based on past data. Future events cannot therefore be correctly taken into account during the calculations. Whatever the predictions, it should be remembered that BTS is, overall, a very stable cryptocurrency, with fairly small variations.

All you need to know about BitShares

Origins of the BitShares project

BitShares is an industrial grade cryptocurrency that was created in 2014 by Dan Larimer. This is the same computer scientist who is behind other well-known cryptocurrencies such as EOS, and Steemit. Larimer is a recognized name in the cryptocurrency world, as he is notably considered a leading innovator. BitShares was co-founded by Charles Hoskinson, the entrepreneur and mathematician behind Ethereum, the second most desired cryptocurrency in the world. Eventually, Charles Hoskinson disassociated himself from the project rather quickly, without public explanation.

When Dan Larimer started the BitShares initiative, he wanted to build a platform that combined the features of both Bitcoin and Ethereum. He also wanted to add the activities of a decentralized bank.

BitShares’ platform goals

One of the possibilities offered by the network is the adoption of platform assets, also called bitAssets. These are indexed to real values such as the dollar or the euro. This feature offers a real guarantee of stability, compared to other cryptos, which is a significant advantage.

In September 2020, the network announced the creation of New BitShares, a new project that is not directly related to BitShares. As a result, BTS owners were able to obtain New BitShares tokens (1 BitShares for 1 New BitShares).

BitShares has gained experience and has been able to evolve while contributing to the improvement of the cryptocurrency industry. As of January 2021, the network has 17 permanent employees and over 60 contributors working with the network on a long-term basis. These professionals bring their expertise in the legal field, computer development or in economics. This technical environment favors innovation to continue to revolutionize blockchain and possibly supply any industry that may need it in the future.

BitShares is now counted among the best Altcoins in the world. The network aims to outperform Wall Street in terms of speed, security and efficiency.

Finally BitShares is more than a crypto-currency, it’s a real ecosystem, always more professional over the years.

How does BitShares work?

BitShares relies on a network and a book, both delivered peer to peer. The network also relies on a Delegated Proof of Stake (DPoS) algorithm to secure its platform. Similarly, the exchange platform uses another algorithm, Graphene. This method is an open source blockchain technology.

BitShares therefore needs “witnesses” and a decentralized voting system to work. The goal of this method is to establish a democratic consensus that bypasses any potential negative effects inherent in centralized systems. For example, the DPoS algorithm limits the need for multiple confirmations during exchanges. The direct consequence of this measure is the guaranteed high speed to approve transactions.

Delegated Proof of Stake and Graphene are both algorithms that enable impressive performance for BitShares. This is why the system is able to support nearly 100,000 transactions every second.

Moreover, the network is managed by a Decentralized Autonomous Company (DAC). This feature gives users the opportunity to decide on the direction of the token and its future.

On the other hand, BTS are used as a gage, so BitShares behaves more like an “equity currency”.

Finally, another very practical feature for any user of the platform concerns the wallet address. Indeed, with BitShares, the wallet address corresponds to the user name. This ingenious feature improves the customer experience and avoids long names, mixing numbers and letters.

What is BitShares for?

Access to a decentralized network for cryptocurrencies

Most cryptocurrencies, especially the most famous ones like Bitcoin, are actually centralized. This certainly offers some security compared to traditional currency, but in some cases it can be problematic. In a centralized system, power, especially miners’ power, is in the hands of a few individuals and is not evenly distributed. In the case of Bitcoin, 60% of the miners are located in China, which gives the country’s miners strong decision-making power.

The solution provided by BitShares is to use the same technology as Bitcoin, i.e. the blockchain, but in a totally decentralized way. In any case, from a speed of execution or efficiency point of view, the bet of BitShares is won.

Customized reserve levels

With BitShares, as a user, you can lend your BTS holdings by customizing the reserve levels (minimum 200% of reserves and up to 2,000%). If price sources are available, BitShares affiliates with any stock pair, be it currency or even commodities.

Trading different types of assets

Another particularly interesting feature of BitShares is the possibility of trading different types of assets, in addition to BTS. In concrete terms, the user can, for example, trade SmartCoins and even create his own assets. SmartCoins are influenced by the prices of real currencies such as the dollar. For example, one bitUSD will always correspond to $1. Thus, there is no risk of devaluation and you can always benefit from its performance. Indeed, the SmartCoin will always have at least 200% of its value guaranteed by the central currency of the BitShares system. BitShares is therefore in direct competition with the traditional banks.

BitShares’ partnerships

Partnership with Arisbank in 2017

In 2017, Arisbank signed a partnership with BitShares. The world’s first decentralized cryptocurrency bank is thus the first company to initiate a collaboration. At the time, Bitshares committed to equipping Arisbank with a platform for real-time delivery of products and services offered by the bank. This opportunity underlined the expertise and professionalism of BitShares.

Partnership with Nomics in 2020

In February 2020, the cryptocurrency services company Nomics finalized a “deep data integration” with BitShares. After evaluation, Nomics awarded the network an A+ rating. With this qualification, Nomics committed to inspecting BitShares’ business history. In addition, the company has verified that the BitShares network meets the highest standards of reliability, consistency and data protection. Nomics’ CEO Clay Collins even stated:

« By many credible accounts, BitShares is the first decentralized crypto exchange to operate at scale. Given the exchange’s importance to the ecosystem, we’re pleased to have them as one of our premier exchange partners ».

ProtoShares becomes BitShares

The project was originally named ProtoShares (PTS) in 2013. ProtoShares (PTS) soon became BitShares (BTS) (in 2014).

How to get BitShares tokens in 2021 ?

You can buy BitShares directly with bitcoins on dedicated sites. We advise you in particular Coinbase. See the Coinbase website.

You also have the possibility to get paid directly in BTS in order to obtain these tokens. Finally, it is possible to go to the BitShares website to get BTS.

Can we mine Bitshares ?

At the beginning of its existence, the ProtoShares token could only be mined via a processor. The PTC tokens were not pre-mined, which caused the value of the token to rise to $9 (about 7.50 euros). However, the main problem was the cost of the equipment needed by the miners. Indeed, they were forced to pay a lot of money to acquire software or very powerful hard drives.

This problem has been solved. It is now possible to mine BitShares, even if this crypto-currency is designed a little differently than others such as Ethereum for example, as we have seen above.

Obviously, as with any mining activity, we advise you to find out about both the cryptocurrency you are going to mine, in this case BitShares, and to make sure that your computer equipment is sufficiently powerful. Good computers for this activity would be ASICs, which are admittedly quite expensive.

Reminder on the mining activity

Let’s quickly go back to the concept of mining. To mine a cryptocurrency, it is necessary to have a powerful and efficient hardware, at least capable of performing complex calculations. Indeed, these computational steps are mandatory to mine and are called “proof of work”. In fact, if many miners want to solve the same specific pool, the equations will be more delicate. The advantage of this system is that it ensures a homogeneous pool and pushes to exploit even more powerful material.

For your mining activity, you will receive a reward, in our case BTS. Note that BitShares miners can receive a reward for their work of 1 BTS every 3 seconds.

bitshares bts

Why and how to use Bitshares tokens?

Why use BTS tokens?

But then, why is the BitShares system so beneficial? The network has several features that may be of interest if you are looking for:

  • A decentralized system: As we have seen, the decentralized network of Bitshares is one of its biggest advantages.
  • SmartCoins and the ability for users to issue their own assets: the presence of Smartcoins on the network ensures that users can benefit from the positive aspects of the system while avoiding instability. And, at BitShares, this goes hand in hand with another option: for users to issue their own assets. The issuer can, among other things, choose the level of control over the asset. From fair crowdfunding to VIP tickets to ownership rights to fan tokens, these are just a few examples of the range of possibilities offered by BitShares. This is because BitShares issues both BitAssets, which fluctuate little, and BitUSD or BItEUR, which are anchored on real currencies.
  • A trading strategy: Another possible use for you would be to trade, either in the long term or in a short term perspective. It depends on your strategy.

How to use BitShares tokens?

To use BitShares tokens, you need to download the BitShares software available on their official website. Then you can create an account and save a backup. In the “deposit/withdraw” tab, you will be able to send or receive BTS. In the “exchange” tab, you will be able to access the page where you can buy and sell Bitshares tokens. It is also possible to transfer other cryptocurrencies via this platform.

Finally, we recommend that you keep your BitShares in a wallet. You can simply use the official BitShares wallet, which has versions for almost all operating systems: Windows, MacOs, Linux, as well as an application available on Android.

The wallet has an owner key, an active key and a memo key. Each of them is available in public and private versions.

In addition, you can use this very secure wallet anonymously.

Our opinion on BitShares: is it too late to invest?

With a stable and predictable price, the BTS token is a great option. Thanks to its professional and efficient structure, the BitShares cryptocurrency ranks very high in the Altcoins ranking. Combining security and reliability, BitShares stands out in the cryptocurrency field. Indeed, it has never encountered any major problem since its creation, which is since 2014.

In our opinion, it is still not too late to invest in this token. There are many indicators that the future of BTS will be sweet, even if it is not the most in-demand cryptocurrency these days. In fact, we believe that BitShares would be more suitable for an investor who doesn’t want to take much risk, rather than a “risk lover” investor.

However, there are several analysis on the subject to consider. Wallet Investor, for example, has published its predictions on the subject. The website believes that it is not a good idea to invest in BitShares due to the negative price trend of the cryptocurrency. It is not the most profitable asset and Wallet Investor recommends diversifying your wallet with other crypto-currencies. Finally, it adds that the BitShares market is not the easiest one for new users to grasp.

To help you make your decision, we have summarized for you the main advantages and disadvantages of BitShares.

Benefits of investing in BitShares:

  • If you invest in BTS tokens, you will be able to make a very large number of transactions at the same time, instantly.
  • You will be able to invest in many different assets on the BitShares network, such as SmartCoin or BitUSD, or even commodities.
  • There is no limit to the amount you can invest or withdraw
  • BitShares charges very reasonably for user transactions, compared to other networks that exist.
  • Users of the BitShares platform enjoy a wide range of financial services.
  • Finally, the guarantee of anonymity on the network is an interesting option.

Downsides of investing in BitShares :

  • The marketing strategy of the ecosystem is quite poor and does not reflect the potential of the token. The marketing aspect needs to be improved.
  • We also regret the fact that BitShares does not share a clear plan of action to its investors.
  • There are other crypto-currencies, much more popular and with a strong potential.
  • A low return on investment.
  • Finally, one should never forget the risk of a sudden drop in the price of BTS, or “Black Swann Event”, which is still minimized in the case of BitShares.

So, is it better to invest in BitShares or not at all? With the above in mind, it should be easier for you to make your choice!


Sois au courant des dernières actus !

Inscris-toi à notre newsletter pour recevoir toute l’actu crypto directement dans ta boîte mail

Please enable JavaScript in your browser to complete this form.

Envie d’écrire un article ?

Rédigez votre article et soumettez-le à l’équipe coinaute. On prendra le temps de le lire et peut-être même de le publier !

Articles similaires