Which Cryptocoin Could Overthrow Bitcoin?steemCreated with Sketch.

in #bitshares3 years ago (edited)

It's Not Easy to Admit You Were Wrong

Back in 2011, I came across an article describing a weird concept of a digital currency that wasn't backed by any central government or company. It was resistant to attack and could be transferred peer-to-peer in a trust-less manner for next to nothing. Plus it would free the people from the confines of the traditional banking system. I thought to myself, this must be a scam, but something told me to get out of bed and do a little digging.

Ever since that day, I have been evangelizing to anyone who would listen, about all the amazing benefits that bitcoin had to offer. If someone was interested in learning more and decided to invest I would tell them to start with an amount they were willing to lose because there are no guarantees when it comes to cryptocoins. I knew that this technology would be perceived as a threat to the banking world and they would stop at nothing to bring it down.

Fast forward 6 years and now here I am writing an article on what I believe to be the most powerful blockchain technology provider in the world and it's NOT bitcoin. I must sound like such a hypocrite to all the people who listened to me and invested in bitcoin, but at least they made a very handsome profit.

My Number One Pick

Throughout the past 6 years, I invested in countless cryptocoins that all sounded like the next best thing. All because I was chasing the next big payday. I was constantly reading articles about promising projects that would revolutionize the world with their advanced algorithms or unique usage of blockchain technology. I didn't realize until recently that I was investing into the hype, unproven technology, or non-scalable products.

Finally, one day I was looking through coinmarketcap.com and I came across a coin that I'd never heard of before. I visited their website, read through their informational material and decided to invest. At the time, I didn't think much of it but as the months went by, my investment increased by 4000%. This caused me to do even more research which led me to discover the true power that was backing my investment.

I introduce to you... BitShares

BitShares is the most diverse ecosystems I have ever come across. It offers investors more features than a Swiss Army knife which initially can be rather daunting. When you take the time to do your homework and start using the system you realize there's a rather steep learning curve. Having a smooth user journey is not one of BitShares strong suits, but that is being addressed.

BitShares is an industrial-grade decentralized trading platform designed for high-performance financial smart contracts. It looks to extend the innovation of the blockchain to more industries that rely upon the internet to provide their services. Whether it's banking, stock exchanges, lotteries, voting, music, auctions or many others. The digital public ledger allows for the creation of distributed autonomous companies (DACs) that provide better quality services at a fraction of the cost incurred by their more traditional, centralized counterparts. (1)

The BitShares blockchain is by far the fastest (2) and largest (3) in the world. As of today, BitShares has been proven to support 3300 transactions per second and 16000 operations per second with the potential to handle between 100K-180K TPS. That means at 3300 TPS is can already handle the combined transaction volume of bitcoin, ethereum, litecoin, and Visa. You have to admit that's pretty impressive.

Logo DarkBlue + BitShares Blue - Gradiant.png

Is BitShares a Company?

Since BitShares is a Decentralized Autonomous Company, is it registered somewhere like a traditional company? The answer is NO, it's not registered because it's actually a software protocol just like bitcoin. As with bitcoin, there is no central leadership or single point of failure.

The mastermind that created the concept of BitShares is Daniel Larimer. A few years ago he moved on to create many other amazing projects. Today his father, Stan Larimer, acts as the unofficial spokesperson for BitShares and spearheads several efforts to ensure that people learn about the power of blockchain technology and BitShares.

When people first learn that BitShares is not a traditional company it usually causes confusion and doubt. They wonder how can something like this not be regulated or governed by a central government. Again, it's being treated in the exact same way as bitcoin. Although, BitShares offers many more features and benefits then bitcoin.

Who Supports Ongoing Development

There is a core team of developers that actively work on new features, User Interface upgrades, bug fixes, and ongoing maintenance of the network. These are people just like you and me who have the skills necessary to push the BitShares technology even further.

How do these developers get compensated for their time and effort? There's actually a reserve pool of approximately 1 billion BitShares (BTS) that are used for exactly this. This reserve pool is not a slush fund for lavish vacations or expensive toys. The reserve pool is secured by a smart contract that requires shareholder approval before any funds can be released. The shareholders are any entity that owns BitShares excluding "Non-voting Accounts and Exchanges".

This reserve pool can even be used to fund new projects that will provide an added benefit to the BitShares ecosystem.

Your BitShares Account is Your Wallet and Your Gateway to the DEX

This information is extremely important for those looking to create their first BitShares wallet and transfer their cryptocoins onto it.

When you register for an account on either bitshares.org or any one of the 3rd party gateways (i.e. openledger.io) you're in fact creating more than just an account on an exchange. You're creating your wallet that will be registered on the BitShares blockchain.

It's EXTREMELY important that you SAVE your password because if you lose your password you will lose your funds FOREVER. The only way around this is by choosing to initially create an account via the "Local Wallet" option and then save your "brain key".
brainkey access.jpg

Regardless of which type of account you create, make sure you save your password manually. Write it down or save it on a thumb-drive and then back it up. DO NOT USE A PASSWORD MANAGER TOOL. I've already seen cases where people used LastPass and it didn't save the password. The customers didn't realize it until it was too late.

BitShares Compared to the Top Five Cryptocoins

The top five cryptocoins (BTC, ETH, LTC, BCH, XRP) don't even come close to the performance power of BitShares.

Bitcoin can now handle 6-7 TPS but maybe 12 TPS after SegWit2X
Ethereum can now handle 7 TPS but may be pushed to 20 TPS with Raiden
Litecoin can handle 28 TPS
Bitcoin Cash can handle 56 TPS
Ripple 1000+ TPS but only focused on the financial industry

All of these cryptocoins are marketed as being the best of the best. Even though when you take the time to dig a bit deeper you soon discover they are unable to support global demand. Of course, these cryptocoins are all working on new upgrades which sometimes leads to forks or increased decentralization, but the changes are mediocre at best. There's no telling how long it will take them to achieve the same performance level as BitShares. I don't know about you, but I'm not that patient.

In addition to their inadequate performance, they don't even offer the same amount of remarkable features.

Some of BitShares features are:

  1. Market-Pegged Assets: (Think Tether, but 1 billion times better) These are actually backed by real collateral.
    Examples: 1 bitUSD = 1 USD which is backed by AT LEAST 2x worth of BTS as collateral, 1 bitEUR = 1 EUR, 1 bitSILVER = 1 oz. of Silver
  2. User-Issued Assets: UIAs allow individuals and companies to create and issue their own unique tokens for anything they can imagine.
    Examples: Simple event tickets deposited on the customer’s mobile phone to pass the entrance of a concert or used for crowd funding. Also ownership tracking or even to sell equity of a company in form of stock. (4)
  3. Decentralized Exchange (DEX): BitShares was the first DEX on the market. Kind of like bitcoin was the first cryptocoin on the market.
    The phrase DEX was coined by the BitShares creator Daniel Larimer.
    You maintain possession of your cryptocoins at all time (unless you lose your password). Therefore, there's no risk of the exchange running away with your money.
    You will never have to worry about BTS being delisted from the BitShares DEX.
    Network fees to execute trades is only .01213 BTS for non-Lifetime Members and .00243 BTS for Lifetime Members.
    You can create your own interest-free loans through margin trades. Investors typically use as much as 4x collateral to back their loans. Below is a great video that explains how to create your own loans.
  4. Voting Rights: Each BTS that is held in a BitShares wallet is worth one vote which can be used to support the development of new features, funding of new projects, and many other things. You can select a proxy if you wish to allow that person to vote on your behalf.
  5. Delegated Proof of Stake: A new method of securing a crypto-currency’s network. DPOS attempts to solve the problems of both bitcoin’s traditional Proof of Work system, and the Proof of Stake system of Peercoin and NXT. DPOS implements a layer of technological democracy to offset the negative effects of centralization. (5) Basically, the bitcoin network requires the same about of electricity as Azerbaijan to operate. How is that sustainable? (6) BitShares doesn't require any mining and is supported by 19 witnesses/nodes which requires significantly less energy to function. (7)
  6. Referral Program: BitShares offers a generous referral program. Lifetime members qualify to receive up to 80% of all network usage fees paid by individuals who join their network. An important fact, this is not a multi-level marketing scheme because the program only applies to the 1st level of referrals. Example, I refer Tom and he refers Jane. I get a percentage from what Tom pays in network usage fees but not from Jane.

You can read up on all the financial asset features offered by BitShares here.

Why is BitShares Value Priced so Low?

I get asked this question almost every single day. I can understand why because people who do their research can't wrap their head around the idea that a software this powerful is valued at $.053 USD/BTS.

For those who have followed BitShares for a while, they know that the market treats BitShares like someone with leprosy. Maybe people think it's too good to be true. For those of us who use the BitShares system, we know that's absolutely not the case.

For now, BitShares reached an all-time high of $.42/BTS on June 10th, 2017 which equates to a market cap of $1.2 billion USD. What happened after June 10th was entirely out of BitShares control.

First, there was the ban on ICO's by the Chinese government and fear that the Chinese government wouldn't stop there. Before June 10th, there was a massive spike in CNY being invested into BTS so naturally when this news broke Chinese investors did what they felt was right and sold their positions.

Second, on October 3rd Bittrex, which is a centralized exchange, made the decision to delist BitShares effective 13 October. This caused massive confusion amongst BTS shareholders as they couldn't understand why a top 15 by volume cryptocoin would be delisted out of the blue. Thousands of customers reached out to Bittrex and BitShares requesting justification for the decision. BitShares development team attempted numerous times to reach out to Bittrex to see if there was a way to reverse their decision. As of today, no reason has been given to the customers of Bittrex or BitShares.

Rumors started to spread about what could have led to the delisting. Ranging from a pending SEC investigation against BitShares to network disruptions caused by unfixable code and finally my favorite, that BitShares was susceptible to a 51% attack just like bitcoin. All of these reasons are untrue and here's why.

  1. According to the Howey Test BitShares does NOT qualify as a security.

    In case you were wondering, here are the test results for Ethereum.
    Ethereum Howey Test Results.jpg

  2. Bittrex has been informed in the past of ways to reduce the amount of RAM needed to run a BitShares node. They have yet to implement the recommended changes.

  3. BitShares can't be mined. Any and all decisions have to be voted on by the shareholders prior to them going into effect. Any attempts to overthrow the system would be identified beforehand and thwarted.

So again, why is the price of BitShares so low? That is the $1.2 billion USD question.

Since the 10th of June, BitShares has NOT released any negative news that could justify the dramatic drop in price. In fact, BitShares only has positive news to share.

The development team has been releasing regular updates to the BitShares client/wallet file to improve the customer experience. This work is not done which is why the dev team is currently 6 weeks into a 6 month project that will dramatically redesign the entire BitShares wallet.

BitSpark.io has officially launched their Zephyr Token ITO and it's being supported by the BitShares blockchain. BitSpark is a remittance platform for money transfer businesses. They are switching from the bitcoin blockchain to BitShares because of how slow the bitcoin network is and how high the fees are. Watch this video to hear it from the CEO himself.

The Billion Hero Campaign (http://billionherocampaign.com/) was launched and will teach people about investing in cryptocoins and understanding the significance of blockchain technology. In addition to the educational aspects of the BHC, participants will be identifying how a $1 billion USD prize will be split amongst 12 different charities of their choosing.

The BitShares DEX Telegram channel has grown dramatically since June 10th. Now there are nearly 4500 members. You can join the group via this link: https://t.me/BitSharesDEX If you would prefer to use the Discord App please use this link: https://discord.gg/GDp4Rm5

You can read up on the latest BitShares developments on the weekly "State of the Network" articles that @steempower posts on Steemit.com. Here's the link to the latest article. https://steemit.com/bitshares/@steempower/bitshares-state-of-the-network-3rd-october-2017

Now my assessment is that investors are still licking their wounds from the dramatic drop since June 10th. Those who still have faith in the BitShares system are looking for the right time to buy back in. Once that day comes I imagine we will see new ATH's being set on a regular basis. It's not a question of if, but when?

What the Future Holds for BitShares

BitShares doesn't have to promise you that it will have XYZ features developed within the next few months so you can begin using it. BitShares has a long track record of providing its customers with a working product that is way ahead of the competition. It may not be the most pretty or easiest to use, but that is being updated on a regular basis. The most important aspects of this system have been fully functional for years.

The main issue that BitShares has to overcome right now is liquidity and that is solved by higher usage of the DEX by those who understand the true power of a decentralized trading platform.

I strongly believe that BitShares will continue to grow as centralized exchanges become a thing of the past and it will establish itself as one of the top, if not the top, cryptocoin(s) in the market today.

How can you help?

You can help by joining the community.

Learning as much as you can about the awesome power of this system and spread the word with anyone that seems interested.

You could start MeetUp groups to create a professional way for people to come together and learn what you know.

Share any Tweet about BitShares that you feel is worthwhile. You can follow me on Twitter: https://twitter.com/kevinmesserly

Transfer your BTS to the BitShares DEX and exercise your right to vote and start trading if that's your cup of tea.

Talk to businesses about all the great ways that they can utilize the features offered by BitShares.

Remember there's no central team to blame if BitShares doesn't become a world-famous decentralized trading platform.

It's up to all of us to make this happen.

Image Source: bts-bourgeoisie (Keep up the outstanding work! You're creativeness is exactly what BitShares needs to gain the attention of interested users.)

I hope you found this information beneficial. If you see anything that's not factual please comment below and I will update accordingly.

If you would like to join my BitShares network then please use this link to create a new wallet. http://bit.ly/kimchi-king

If you're interested in translating this article into another language just let me know.
The Spanish version is being worked on already and will be posted here on Steemit by @dineroconopcion.
Currently coordinating the translation into German and French as well.


  1. http://docs.bitshares.org/_downloads/bitshares-general.pdf
  2. https://steemit.com/bitshares/@chris4210/1h30-min-bitshares-stress-test-of-the-15-march-2017-3300txs-14000ops
  3. https://www.cryptofresh.com/
  4. http://docs.bitshares.org/_downloads/bitshares-financial-platform.pdf
  5. http://docs.bitshares.org/bitshares/dpos.html
  6. https://digiconomist.net/bitcoin-energy-consumption
  7. https://www.cryptofresh.com/witnesses

Excellent article. I agree that we need to be frank about a few things with ourselves here. We were WAY ahead of our time. We as a decentralized company did not do enough to create a foundation or centralized wing to guide the decentralized company at times it would need. It has been an interesting experiment in a DAC - a TRUE DAC - and how it could run. We need to realize that there needs to be some groups here that work as teams to move the project forward. We have been doing that for quite a while, but it takes time to get momentum. The recent bug with consensus and now this node "issue" highlight the need for legal response, organized porting of code, and marketing/branding/damage control.

It is up to every single Bitshares holder, hodler, and enthusiast to ensure the survival of the best blockchain out there.

@kimchi-king, you are one of those that works hard for the cause - you have my salute sir!

Thank you so much Michael for the kind words. Let's make BitShares the greatest it can be. Together we stand strong.

100% agree with you. Please keep me in mind for future organised marketing/branding/damage control.

It's painful to be too far ahead of your time. Buffet said being ahead of your time is indistinguishable from being wrong until you're proven right.

Interesting perspective...!

I am hearing good things about the bitshares decentralized exchange. Personlly I have struggled to use it. It just seems complicated and confusing. I haven’t given up. I will master it.

Would you be able to explain from an investment standpoint the link between the bitshares token and the value of the exchange?

From an investment perspective, the value of BTS will rise as more companies use the platform to create DACs and UIAs. Each time a transaction or operation is performed a network fee is paid. Nine time out of ten the fee is paid in BTS. Therefore, these new companies will need to stock up on BTS in order to continue operating their autonomous businesses. This will increase liquidity and demand which equals a higher price point for BTS.

In addition to this, if CEXs are shut down due to stringent regulations then investors only have three options. First, exit all positions and no longer invest in crypto. Second, use P2P services. Third, start using a DEX which can't be shut down. I believe the third option is the most likely choice, but usability needs to be increased before mass adoption can take place.

No altcoin can over take Bitcoin. It had limited circulation and trading pair to buy any crypto. Demand will keep it

Almost all cryptocoins have limited supply and trading pairs adjust as coins become more popular. If bitcoin begins to lose support then exchanges will adjust their pairings to ensure they generate the highest profit possible.

Great post Kevin. Very detailed and full of valuable insight. Glad you are on the team. :)

Thanks Tony. Let's take BitShares to a whole new level.

I have also been looking at bitshares and may use this opportunity as btc rises and alts sell off to invest more heavily.

Where do you keep your bitshares? In a bitshares exchange wallet I assume? How easy do you find this to use?

I personally keep my BTS in the BitShares client wallet found here: http://bit.ly/kimchi-king

The wallet just got a whole lot easier to create, but make sure you save your password and don't lose it no matter what.

The exchange has what you need to execute trades. It does require some getting used to, but it's pretty similar to the Poloniex interface.

Thanks. I’ll take a look. I briefly looked into the exchange some time ago but was looking at the desktop client. I found it a bit difficult to use and all coins seemed to be at a premium so cheaper elsewhere. I’ll take another look, especially as btc is powering ahead and everything else is dropping off. Real discount to be had.

As promised, after your helping me today on Telegram, I have read your passionate case here for BTS "supremacy." Excellent article! All the best to you, as you continue your "evangelistic" efforts.

Superb post my friend..bitshares is one of the most undervalued cryptos IMHO because it is so complex and so mammoth that many find it hard to understand...this delisting on Bittrex is just the start guys...this is a pure example of centralized companies seeing them as a threat. After the China debacle Bitshares saw massive volume, but I don't think this is the real gem. It's the stable ecosystem it provides banks, corporations and others to allow them to enter the blockchain and feel comfortable. Many companies on wallstreet are concerned about Bitcoins scale-ability and volatility,so Bitshares provides this..awesome article kimchi-king..I'm buying big time..this is a medium to long term investment, but wow it's a GEM

Thanks Shawn. The future of BitShares is so bright. I'm glad that we're a part of this movement.

Excellent article. I'm also amazed at how may people overlook and ignore bitshares. It's such a amazing platform.

Bitshares and IOTA in my opinion are two of the biggest sleeping giants in the crypto space and both are on sale right now because of all the BTC fork nonsense.

Opportunity knocking. :)

I'm all in on Bitshares. I have been interested in IOTA, but haven't gotten a wallet or purchased any yet. I'm staying off centralized exchanges.

What are some things that you like about IOTA? I know that it's technology is significantly different with the "tangle" instead of a blockchain.

Just off the top of my head...

  • Iota will have ZERO transaction fees. That alone will drive integration all over the place, especially for B2B

  • Iota can and will interface with HARDWARE. (the Internet of things and many other interfaces) The innovation that this will bring to the world cannot even be comprehended. This will drive astronomical growth in every sector imaginable as it rolls out.

  • Iota is quantum computer proof.

  • Iota can use micro-transactions and do it with zero fees.

  • Iota has endless "real world" applications/utility.

  • Iota development does not hype their platform, they are focused on building the absolute best platform in the world. ZERO hype needed. Their tech stands on its own.

It's taken a giant dip now because of the bitcoin gold scramble. Excellent time to buy up to the fork snapshot. I expect it to drop a bit more over the next few days.

This looks so cool. Would you be okay with me using this in a new Tweet?

Sure! Didn't you read my post? I encouraged to copy it. A upvote is appreciated

Didn't read the article...but just by viewing the thumbnail in relation to the title...mom...very hard to predict...bitshares?

Thanks for being honest. If you get some free time please read the article and see why I felt it was necessary to write this.

Hey Kevin, great article! If you could, it would be immensely helpful if you could post a guide to buying and securely storing bitshares on an offline wallet for absolute beginners who know nothing except having a btc wallet on some exchange :)
Also, what do you think about OBITS?

Worth investigating.

I would love to create a guide like that, but I don't know the intricacies of using an offline wallet. I will see if anyone in the community can do something like this.

OBITS seems like a great way to become part owner of a very promising gateway company to the BitShares DEX. I do believe this token is considered to be a "Security" by the SEC so just be aware.


Openledger just published a new website. It has a lot of great information about their projects.


I cannot wait to get more news about bitshares. I just got an account about 1 week ago.

Check out the weekly BitShares State of the Network reports that are published here on Steemit. All the information you need is included in them.

I agree with you. Bitshares it is.

Very cool information thanks kimchi! I hope bitshares can one day make there own local banks so we can withdraw cash. Or something to provide liquidity to buying every day items like a debit card.

Great article of bitshare thanks for it

You're very welcome. Thank you for reading it.

Great work! Can I ask you the difference between bitshares wallet and openledger wallet? Thank you very much


Openledger is a branded front-end to the Bitshares DEX. You can use the same login details to access the DEX from any third party gateway. Openledger also allows for fiat deposits and withdraws.

There's also crypto-bridge.org which is another gateway to the DEX.

Beautiful Post well done

work well done, try to exchange more ideas to improve the community of streemit thanks

This article has just convinced me to buy and hodl BTS for the long haul. I hope EOS will be victimized like BTS

I'm glad to hear your decision. Please share this article with others so they can learn of BitShares. People don't know what they don't know.

Holy crap man, that was a really good and inspiring article, even for a skeptical ass like me

Wow, I'm glad that I could inspire you. If you ever have questions about BitShares the community will be happy to answer them, including myself.

I have a question to @michaelx: does this post qualify to be published at huffpost, like your piece about not breaking bitcoin earlier this year?

@ravid I'm truly humbled that you would suggest such an awesome idea.
@michaelx you have my absolute consent to publish this article wherever you see fit.

Bitshares was barely on my radar till I came to this article. Thanks! Will follow it (and you) much more closely.

I'm blown away by the response so far. It will be my absolute pleasure to keep you posted on new developments. I'm most active on Twitter, but thought this medium was best suited for the intentions of this article.

Upvoted and Resteemed and Retweeting and Sharing on FB, and I think printing a million copies and pasting them everywhere

Great article on BTS. I am a big believer in BTS, just a matter of time before it skyrockets!

Get Elon on board. BTS will sky rocket then.

I sent Elon a Tweet with the link to this article. Let's see if that works.


If anything Elon will join his old buddy Cantrell with Nexus ;) lol

I think steemit or ethereum have the best chances at overthrowing bitcoin.

In the next 3 years I see this on coinmarketcap.com-

1- EOS
2- Bitshares
3- Steem
4- Bitcoin

I pray I am right but only time will tell

Steemit is powered by Graphene technology which is also what BitShares uses.

Ethereum is entirely too slow to support global demand.

Check out the unconfirmed transactions for Ethereum: https://etherscan.io/txsPending

Over 3,000 txs at the moment. This will get worse as adoption of Ethereum continues to grow, unless they can upgrade their code fast enough to catch up with demand.

There is a real market for smart contracts, and Ethereum is well placed in this domain. Maybe other projects will raise in the coming years (NEO...), but ETH was ready first !
I think Bitshares don't need to be compared with ETH. Moreover, BTS is world champion in 2 domains :

  • Really decentralised, so that no bank or financial fund or state will ever own it
  • Not mined but POS, so that it won't cost more and more to run

The problem is to have everyone aware about that !

Well written. Good work!

I've been following Bitshares and reading as much as I can about it for the last month or so. I've also been actively trading using the Bitshares DEX. I've been steadily gaining more Bitshares and I'm quite surprised at how well I've done already in such a short time.

Thanks for your thorough overview and links to more resources. I appreciate it.

Welcome to the BitShares community. We are thrilled to have you as part of the team. Education about all things BitShares is critical for you to truly benefit from everything BitShares has to offer. It is absolutely more than just a currency.

You are one of the lucky few who are getting into BitShares at the ground floor. Let's see how high this ecosystem can take us.

Congratulations @kimchi-king! You have completed some achievement on Steemit and have been rewarded with new badge(s) :

Award for the number of upvotes received
Award for the number of upvotes

Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here

If you no longer want to receive notifications, reply to this comment with the word STOP

By upvoting this notification, you can help all Steemit users. Learn how here!

Bitcoin could be pitch-forked as a UIA on bitshares, and that would solve immediately scalability issues. Bitcoin is just a simple dapp compared to bitshares (financial platform). Moreover, in the coming months, Bitshares 3.0 DAC will run on top of EOS and DPOS 3, becoming the first decentralized exchange outperforming centralized exchanges like bittrex, with none of the problems. Bitshares and EOS are not easy to understand, but if you want to invest in a back-end technology, you must do some homeworks. Well, @kimchi-king dit it in a brilliant way :) Thanks for this excellent article!

Now this is some outside of the box thinking. I like your style.

Thankfully, the BitShares community thought about your concept a while back and created bitBTC. You can find more details about that here: https://openledger.io/asset/BTC

I wonder if more people knew about this wicked fast version of BTC would they begin to use it? If so, wouldn't that raise the value of BTS because each transaction requires a very small amount of BTS as a network usage fee. Seems like a win-win for both BTC and BTS lovers.

Well, let's see what the future brings our way.

BitBTC is an IOU on openledger. The pitch fork would be done on a BTS UIA (user issued asset). See the discussions about Bitcoin Fast from Stan larrimer: https://steemit.com/bitcoin/@stan/the-coming-bitcoin-pitch-fork

When users will have enough of bitcoin forks and minors vs core wars, they will see this as an elegant solution to bitcoin problems.

bitBTC is not an Openledger asset. Anything that starts with open. is an Openledger asset. Any asset that starts with "bit" is a committee approved UIA.

Therefore people can already use bitBTC to trade BTC on the BitShares DEX.

Thanks for the info, my mistake. So there would be another UIA for Bitcoin Fast, if I understand correctly. I will study bitBTC to understand this better.

Great post! I really like the level of detail you got into. As a HODLer of BTS, I completely back up everything you said and I totally agree! One thing I have to note though, the hype machine behind the other more renowned coins should be taken into consideration as well. Perhaps it would benefit BitShares if they hired some savvy marketing people or, at least, implemented better marketing.

As a software developer, I get where they're coming from in terms of letting the technology speak for itself, but so far it has resulted to slow adoption, with only technical guys and well-read crypto enthusiasts backing it. It's a shame if they let the incredible technology go to waste. If only they could spread the word plainly enough that even the most luddite of laymen would be hyped up to buy some.

Will echo the sentiment of a well written and informed article! THIS is the kind of post that helps to raise the bar of understanding of Bitshares, the DEX, and cryptocurrency in general. Keep up the great work!...oh yeah, up-voted too :)

I'm doing what I can to help educate people about this extremely misunderstood system. It took me a few weeks to gain all of this knowledge so hopefully this can become a reference for anyone looking to learn more about BitShares.

Thanks for the up-vote. You rock!

I really eanjoy your blog and this is one of the reasons i upvoted and i can say well done... i know you add a lot of work on it!
You mention about the amazing benefits that bitcoin is offering and the fact that you spoke with a lot of people about it...
Can you please raise the voice up as for the moment i just see extremly high fees and nothing else... except if you took bitcoin long long time ago...
Great presentation about bitshares... but when i purchase a lot on 0.11 usd things looked great now its more then half less so maybe you can explain that as well...
Again dont get me wrong i like your blog a lot but cryptocurrencies world is a hard and crazy world.... at least for the moment!😉

Thanks for showing your appreciation.

There are many issues with bitcoin that need to be addressed, but it's proving very difficult to change the original protocol due to centralized mining pools. This is why you keep hearing about forks from the bitcoin blockchain.

Here are the main issues that bitcoin has to overcome.

  1. A once decentralized ecosystem of miners has become extremely centralized.
  2. Nearly impossible to adjust the core code due to the powerful centralized mining farms
  3. Transaction fees are way too high to support mid to micro-transactions
  4. Transactions/operations per second is ridiculously slow which leads to congestion (for real-time updates use this site: https://blockchain.info/unconfirmed-transactions)
  5. The need for forking the blockchain will cause confusion amongst new users as they try to figure out which bitcoin to trust. Just look at what's happening right now with Bitcoin Gold. Is it a scam or legit?
  6. Bitcoin has become important for only one reason now. It has become a store of value based on nothing more than first movers advantage. This means that one day people may realize they are investing in a ponzi scheme because nothing else supports the value. How does Bitcoin itself generate profit? Right now, it's created when miners unlock a new block and receive the reward. What happens when the last block is unlocked? This may not happen until the year 2127, but the principles are still the same today.

Now, with regards to BitShares, my personal suggestion is to weather out the storm. Hold as many BTS as you can and reap the benefits once the market realizes just how important BitShares technology is to the global economy. Already today, BitShares can support global demand.

Very interesting. I didn't catch what dex was though. Could somebody please clue me in on dex?

DEX stands for Decentralized Exchange.
CEX stands for Centralized Exchange.

Long intricate post. It had very good insight which helps to understand the depth of the context

Thank you for taking the time to read through all the information. It is a lot to ingest, but I felt it was important to lay everything out in one go. I hope you share this with anyone you think might gain something from it.


Its not a problem to read a long but it gets boring after a while. Hope you understand.

Very informative, thanks.
But what I still do not understand is why Dan Larimer launched the EOS token on the Etherium network and not in Bitshares system?
If EOS is supposively the "Etherium killer" and Bitshares is so great, why EOS token in Etherium?
Thanks for your answer.

I'm glad you liked the article.

This is just my personal opinion, but I would say Dan chose to launch the EOS token on the Ethereum network because for now it provides the greatest access to liquidity.

Recently, bitspark.io launched their Zephyr Token ITO on the BitShares network and so far they have raised ~450K EUR according to this site. https://bnktothefuture.com/pitches/zephyr (There's more than 1 day left to participate)

You can find more about the Zephyr token ITO right here. https://zephyr.bitspark.io/

I think EOS was launched on Ethereum rather than on Bitshares because of network effect. That is just traditional economics. The old have to bootstrap themselves with the new. The same way Bitshares was listed at Bittrex, while Bittrex is not listed at Bitshares. Here is Wikipedia definition of network effect: A network effect is the effect described in economics and business that one user of a good or service has on the value of that product to others. When a network effect is present, the value of a product or service is dependent on the number of others using

Bittrex could never be listed on the BitShares exchange because Bittrex isn't a token. It's just an exchange. BitShares is an exchange, currency, bank, etc.

I absolutely agree that EOS uses Ethereum due to the network effect. Well said.

Oh but how fucking cool would it be for someone with shares in Bittrex to UIA them onto Bitshares..

That could be a lucrative idea, but that would mean Bittrex would need to disclose their income to justify the token value. I doubt they would ever do that.

Am I wrong in my thinking?

Great write-up. Do you mind sharing your source or reasoning for how Bitshares doesn't qualify as a security under the Howey Test? Thanks!

Hello John, I used this tool from coinbase.com (https://docs.google.com/spreadsheets/d/1cFunKTi3llcwGq5U7Wv9j5AoYHi7gApBYmTs_NVnVOE/edit?usp=sharing) and conferred with senior developers from BitShares to ensure the accuracy of the results.

I discovered that the results I originally published were slightly off, but now the current version displays the most accurate results possible. You can see the original results here:

Please let me know if you have any other questions.

Great writeup! @OriginalWorks I never knew anything about bitshares before. Defintiely have more research to do. Thanks!

The @OriginalWorks bot has determined this post by @kimchi-king to be original material and upvoted it!


To call @OriginalWorks, simply reply to any post with @originalworks or !originalworks in your message!

To enter this post into the daily RESTEEM contest, upvote this comment! The user with the most upvotes on their @OriginalWorks comment will win!

For more information, Click Here!
Special thanks to @reggaemuffin for being a supporter! Vote him as a witness to help make Steemit a better place!

Great post - thanks kimchi-king

I am a believer in bitshares as well, although I hated it when I first got onto their DEX.

How high could it get? Or realistically, how high do you think it deserves to get?

Most well-written article I've read in a week. Thanks for putting out the effort and for the logical analysis. Upvoted and followed.

Thank you so much for the compliment. I had a lot of practice during my 10 years as an Intelligence Analyst for the US Army.

Please share this with anyone you feel will benefit from it.

I cannot agree BTSHARE would be a replacement for BTC, I used BTS myself, it is for trading, while BTC is for currency only purpose and has obtain wide consensus. One of the pre-condition another crypto coin overtaking BTC is it can make up for BTC's existing defects.

Bitcoin was not created to be a store of value. It was created to be so much more than that, but the market has mutated it into what it is today. BitShares solves all of the shortcomings that bitcoin has and more. I too was a bitcoin fanatic, but now my eyes are open to other possibilities outside of "store of value".

Congratulations @kimchi-king! You have completed some achievement on Steemit and have been rewarded with new badge(s) :

Award for the number of upvotes

Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here

If you no longer want to receive notifications, reply to this comment with the word STOP

By upvoting this notification, you can help all Steemit users. Learn how here!

Great article. now I have to take a look at it.

Thanks for taking the time to read it.

Let me know if you have any questions.

You should have given bts-bourgeoisie credit for his graphic you used.

Excellent point. Will update the article right now.

Bitshare DEX should have both BASIC and ADVANCE MODE because for new trader, it is hard to understand bitshare DEX. That will make more people to join us.

Hello JayJay,

Please add your ideas directly on the BitShares UI GitHub page.


Great post @kimchi-king thank you. I have fallen in love with Steemit, Bitshares and now EOS. Have put my money down for all of them and am so excited by the universally empowering future we have thanks to the technology the Larimers' and the rest of the teams have blessed us all with. Now let's go tell the World

I'm glad that you enjoyed the article. Seems like you have picked all the winning horses in the race. Now let's get our there and spread the word.

Does Bitshares support escrow transactions?

This might allow users to exchange cryptocurrencies on Bitshares for local fiat currencies similar to LocalBitcoins.com and thus bypass Bitcoin as a gateway cryptocurrency.

If you're interested in escrow type transactions then you can just use multisiq accounts which is available in the BitShares system.

Do those multisig accounts cost anything to create?

Here's more info about multisig accounts on Bitshares.

Basically, you will create updated permissions in a normal account and turn it into a multisig account. Below are the fees. Lifetime-Members pay less in fees.

Update Account Operation
Regular Transaction Fee
Non-Lifetime Member Fee: 0.01213 BTS
Lifetime Member Fee: 0.00243 BTS

Price per KByte Transaction Size:
Non-Lifetime Member Fee: 0.08497 BTS
Lifetime Member Fee: 0.01699 BTS

Therein lies the problem.

If you have to pay for every new account, it becomes expensive to substitute multi-signature accounts for escrow transactions.

Escrow transactions can be numerous and with many different people who may not want or need to have multi-signature account relationships with each other.

If you're using a faucet then the cost to create a new account is free, but if you want to create an account directly from your existing account then it will only cost 1.21 BTS. If the price goes up then I see your point. We could always ask the devs to design something a bit more convenient and if approved the reserve funds could be used to pay for it.

Or just ask the developers to implement escrow transactions.

Escrow transactions could be very useful in making the platform more peer to peer and decentralised. Here is an illustration of that for the Steem blockchain:


A proposal was just passed and so the BitShares Blockchain Foundation will be supporting the BitShares DAC. One of the features will be escrow services.


Very nice contrast. I hope to make photo like this!

@reon06: This comment is for your benefit so you don't find others downvoting or flagging you.

I have noticed that you have made a number of very short comments on other blogs, which are similar in style to the one above. They don’t really add anything to the discussion of the topic.

Please help keep Steemit free of spam posts.

If you like a post, it is generally sufficient to upvote it unless you want to join in the debate.

Short comments like “awesome”, “nice post” “amazing post” or “really helpful” are generally not seen as part of the debate on the topic ,and if repeated across multiple posts, may be interpreted as spam.

Asking other people to upvote or follow you is also counter-productive and irritating. They may downvote, mute, or flag you.

Downvotes or flags can lower your reputation, can result in the removal of rewards, and may result in your posts not being seen by others.

Don’t worry, I haven’t flagged or downvoted you. I’ll give you the benefit of the doubt that you were genuinely trying to encourage the poster. An upvote would have been sufficient.

I never reward short comments.

I often reward intelligent comments. I have a lot of Steempower. An upvote from me is worth hundreds of times a normal upvote. I hope I can reward you for intelligent and thought provoking posts in the future.

excellent article. Followed & resteemed.
I made some technical analysis on bitshares:
post feeback, upvote, follow

@kimchi-king your feedback would be apreciated. thanks

Congratulations @kimchi-king! You have completed some achievement on Steemit and have been rewarded with new badge(s) :

Award for the number of upvotes received

Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here

If you no longer want to receive notifications, reply to this comment with the word STOP

By upvoting this notification, you can help all Steemit users. Learn how here!

Let me see if I get the point of this, like if I was a baby:

  1. BTC-U will Hard-Fork BTC at some point?
  2. BTC-U will use BitShares BlockChain?
  3. Once on BitShares we will exchange it for bitBTC-U and trade it from there?
  4. What we will trade is bitBTC-U and that leaves BTC-U a better store of value coin like, removing the exchange transactions that occur on it?

Plese enlight me on those points

  1. BTC-U will Hard-Fork BTC at some point? Yes, but we need an experienced developer to make this happen. Do you know of one?
  2. BTC-U will use BitShares BlockChain? Yes
  3. Once on BitShares we will exchange it for bitBTC-U and trade it from there? Yes
  4. What we will trade is bitBTC-U and that leaves BTC-U a better store of value coin like, removing the exchange transactions that occur on it? Absolutely, BTC-U will be better, faster, and cheaper to transfer. Everything that Bitcoin sucks at will be resolved. Finally, it will actually be able to justify the $5000 price tag.

Let me see if I get the point of this, like if I was a baby:

  1. BTC-U will Hard-Fork BTC at some point?
  2. BTC-U will use BitShares BlockChain?
  3. Once on BitShares we will exchange it for bitBTC-U and trade it from there?
  4. What we will trade is bitBTC-U and that leaves BTC-U a better store of value coin like, removing the exchange transactions that occur on it?

Plese enlight me on those points

Thank you very much for this info...upvote ;)

Congratulations @kimchi-king, this post is the forth most rewarded post (based on pending payouts) in the last 12 hours written by a Dust account holder (accounts that hold between 0 and 0.01 Mega Vests). The total number of posts by Dust account holders during this period was 3578 and the total pending payments to posts in this category was $695.03. To see the full list of highest paid posts across all accounts categories, click here.

If you do not wish to receive these messages in future, please reply stop to this comment.

I acquired some BTS (68) using my Steemit BlockTrades account by trading Steem. Now I can't reverse the trade and use the BTS for anything. How do I recover my BTS on BlockTrades and convert back to Steem? I've asked tech support at BlockTrades and Bitshares but I just keep going in circles. I have tried every combination of account names, memos, etc. including Binance. I see the BTS when I check bitshares-explorer.io but where are they? I acquired them on BlockTrades, then later created a Bitshares wallet while trying to recover them, but my balance there is zero. Very confusing...my BTS are held hostage on BlockTrades and I've found no way to trade, exchange, deposit, or withdraw BTS. Tech support has tried to explain but nothing works. Help!!!!