The ultimate Benchmark: BitShares versus Bitcoin who will survive the test of time?

in steemit •  3 months ago

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BitShares versus Bitcoin

I admit, daily I am looking at the best opportunity to make a quick buck, but after doing some intense investigation into several coins, I believe the one that could all make us immensly rich is the one that is grossly misunderstood.
Perhaos a BenchMark between BitShares versus Bitcoin puts better into perspectiv what BitShares is all about.

I have chosen to write about BitShares as much as I can, first of all because I am invested in it, but secondly because I strongly believe in what Bitshares offers and as it is a complicated crypto to initially understand it probably needs more exposure, so people know what they are missing out on.

Bitcoin vs Bitshares BenchMark

We are still looking at Bitcoin as the number one coin, but what are we expecting of Bitcoin and is it realistic to think that Bitcoin will be used as a reserve currency in the future?
Here we will test both currencies and see how they measure up.

Coinmarketcap
Clearly Bitcoin wins here as number 1.
Bitshares today is number 27.

BitShares today is worth (65.4 Billion/ 202 million) 308 times less than Bitcoin.

First movers advantage
Bitcoin clearly wins here, active since 2008 versus BitShares 2013.

Total transactions
BitShares wins here it deals with as much transactions as the top 3 coinmarketcap coins together.

Transaction speed
The amount of transactions Bitcoin could handle before Segwit was 7 tx per second after the Segwit implementation is 11 tx per second.
Bitcoin Cash might be able to do 15 tx per second in November after another hardfork.
Compare that with VISA that deals on average with 2000 tx per second.
BitShares can handle 100000 tx per second.

https://bitshares.org/technology/industrial-performance-and-scalability/

Transaction Fees
Bitcoin transaction fees are still huge averaging around 2$ even after implementation of Segwit and are directly related to the price of Bitcoin. Truth be told the fees did recently drop from 8$ to 2$.
BitShares transaction fees are neglible, as of right now they are 0.012 bts (less than 1 cent ). Transaction fees of BitShares can be found on the BTS wallet.

Future Proof
Now there are a few possible options to make Bitcoin workable and I would very much advise you to read the following link and make your own decision as to what will need to be done to get Bitcoin even close to where Bitshares already is.
One of which is the much spoken off Lightning Network but that will present many issues by itself.

https://bitsapphire.com/segwit-and-lightning-networks/

BitShares is a clear winner here, it is only limited by the speed of light in terms of how much it can handle and it is lightyears ahead of Bitcoin with it's graphene BlockChain (used also by EOS/ Steemit and Peerplays)

Usage as a reserve currency
Well on first glance Bitcoin wins here, it is accepted by aprrox. 100000 merchants whereas with BitShares right now not much can be bought.
However we must take into account the fees involved for any purchase and as you can see in the below link, BTC is just to expensive for small purchases.
So BitShares would win as a reserve if it is going to be adopted mainstream versus Bitcoin.

https://betanews.com/2017/07/13/what-can-you-buy-with-bitcoin/

Energy usage
Bitcoin loses here.
Bitcoin mining uses up as much electricity as Croatia.
BitShares uses Delegated Proof of Stake (DPOS) no energy usage required for mining

http://docs.bitshares.org/bitshares/dpos.html

Clones
No clones for Bitshares, clearly wins here.
Bitcoin now has a clone called BCH which could potentially overthrow Bitcoin if it becomes more profitable to mine, this by itself brings with it a huge risk for only holding Bitcoin as you might be too late to recognise that BCH or some other clome in the future will be adopted.
BitShares is unique and will be very unlikely to find competition as it is technologically milestones ahead.

If we all go down this road of BTC or BCH we will continue to deal with huge uncertainty as it will become more apparent every year that it will be too slow and too expensive to use Bitcoin.

Referral program
Bitcoin has none
BitShares offers a referral type of programm similar to what paypal used to attract the masses
source: https://bitshares.org/technology/referral-rewards-program/

How many people are involved
I haven't been able to find true numbers but it looks like that very few are holding incredible amounts of Bitcoin.
Less than 1% of the world population is probably involved in Bitcoin.
Although BitShares deals with many more transactions on a daily basis it is difficult to say how many users it has.
Bitcoin most likely wins here, but the higher Marketcap doesn't directly mean it has more users.
It could mean some very rich people bought tons of BTC and it is recognised that very few hold most BTC?

Growth potential
Here I will be biased.
BitShares wins here by the simple fact that it is right now 309 times worth less than Bitcoin yet it is probably 10000 times better on pretty much all technical fronts and as a reserve currency.
It is unlikely Bitcoin will grow 309 times anytime soon.

The Verdict

This is about as much I can think of that can be compared, because Bitcoin doesn't offer much more, I think it is fair to say that BitShares is a huge winner on almost all fronts.
Bitcoin has had the first movers advantage and created a lot of trust amongst crypto enthousiast, but I believe BitShares is much better placed to become the core of crypto.

Bitshares is a place that offers a stable and safe haven for storing wealth, for either companies or individuals, that allows anyone to instantly move their wealth into different risk investments as one sees fit.
It offers a way to be your own bank.

In the end what is it that we expect from a crypto-currency? I feel that all the answers to that question can be found in BitShares not in Bitcoin.


To sum up what BitShares offers more I need a couple of hours time probably, but to name a few things:

Safest exchange in the world
Bitshares is a decentralised exchange (no middle man which is a huge thing), it is close to impossible to shut it down.
Decentralization of the exchange gives BitShares robustness against failure because any attack or failure impacts only a single user and their funds.
Being among the first approved tokens by the TXSRB, the BitShares DEX has essentially become the safest exchange in the world!

Stoken (security token) exchange will be build on the BitShares network
Embracing the TXSRB and SEC rules, regulations & laws will make the Stokens Exchange, the first and most legally compliant way for a company to successfully secure funding without the chance of a shutdown, lawsuit or investigation.
The Stokens Exchange is the future of crypto and it will be built on the BitShares blockchain.

@stan post about Stokens
must read stoken exchange huffingtonpost article part 1
must read stoken exchange huffingtonpost article part 2

Reserve pool
BitShares has a reserve pool of near 100 million USD currently being used for development. As BTS price grows so does this pool and future shareholders will be able to vote how this money will be used towards new state of the art projects.

Bitshares offers Smartcoins
Hero coin is a smartcoin which offers a 5% savings account pegged to the dollar of 1913.

BitShares also offers other SmartCoin investments like:

  • BitUsd pegged to dollar,
  • Bitoil pegged to oil
  • BitGold pegged to gold

Bank
BitShares can function as a bank, offering ways to use Bitshares as collateral to take out loans against the collateral.

EOS
BitShares will be combined with EOS to create BTS 3.0 (a huge deal!)
https://steemit.com/bitshares/@kayahan/bitshares-ceo-stan-larimer-hints-at-eos-bitshares-bts-collaboration-in-bitsharesdex-telegram-chat

1 billion$ charity
BitShares has 1 million locked up which will be used for a charity, due to the growth potential of bitshares the idea is to grow this charity into 1 billion$ before handing it over to the winning charity team.

Follow @stan and check out http://billionherocampaign.com

This will complete my somewhat biased BenchMark, if I got any details wrong please correct me, I did my best to be as transparent as possible.

The more I write about BitShares the stronger I feel my money is placed in the right hands. Join me in spreading the news about BitShares so it finally get's what it deserves!

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Bravo! Excellent post, and thank you for taking the time to write it! Bitshares is now the longest block chain in the world, and broke the world record for tx/op per day last week - 1.1M tx/day!

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Thx John, wasn't aware of that, that is awesome, looking fwd to the paradigm shift towards BTS!

Bravo! Very helpful! It would be nice if you could cite references for your quoted numbers.

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Thx Stan, I just updated most now, I struggle to find the BitShares current fee figure. I did read it was around 1 cent?

Let me know if I should add/ change anything else.
Updated the post including the Stokens exchange now and slightly better format.

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You can find the fee schedule directly on the BitShares wallet. Just click on the gear icon in the top right, then on "Explore", and finally "Fee Schedule". As of last night the fee to execute a trade is only .012 BitShares, so less than one cent.

Also, Bitcoin Cash is identified as BCH. BCC is attributed to Bitconnect which is a blatant ponzi scheme.

Overall, a very nice comparison between BTC and BTS. I hope that more people will share your post and continue to learn about all the great benefits of the BitShares system.

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thx kimchi-king I will change that info! Much appreciated!

I still feel that at least for a while, every cryptocurrency will live in the shadow of bitcoin. There are numerous coins that have made improvements over bitcoin but will struggle to ever catch bitcoin. One of the main reasons for this is that outsiders are just learning bits and pieces about bitcoin and not are not really even aware that thousands of other coins exist. I think products like bitshares are great long-term investments but it's gonna be a while before the world first accepts bitcoin as a whole and then begins to accept other better and more efficient coins.

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Spot on.

But I am fine with that as it gives me a bit of time to build up decent sized positions in a selection of coins now before acceptance grows

Cheers

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Let the masterplan commence!

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I disagree. People aren't fools. I already believe that Bitcoin is peaking and will begin to lose market share for precisely the reasons that Stan outlines, above.

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It's more about people not knowing or understanding bitcoin. The majority of people in crypto were led to crypto because of bitcoin and I just don't see that changing in the near future. And in my opinion no coin will surpass bitcoin until the masses have accepted bitcoin.

I really enjoy your content. Perhaps a witness vote is in order once my Steem Power is up! Keep it up.

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Hi bwells, that would also be appreciated ✌️, thx for your comment!

another bonus to BitShares you forgot is it's reserve pool of near 100 million USD currently being used for development. As BTS price grows so does this pool and future shareholders could vote for all kinds of amazingness! ^_^

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thx tajnost I will add it if I may :)
If you have anything more to add let me know.

Wow, loved this article!
That's so true, cryptocurrency was supposed to be a way to do even micro transactions without it costing a fortune. Bitcoin has lost it.
As for using it as a currency, I'm going to start offering my web dev and design services in Bitshares. What do I have to lose? Heck I'm already tying to hoard up BTS.

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I agree. The power usage required for mining Bitcoin is out of control.

Send me a referral, i will join and then you get referral rewards. Just because i love Old Amsterdam oude kaas :-). Nice post.

As somebody who is still learning about cryptocurrencies this page provides some great insight. Much appreciated mate. Resteemed!

DEAR @STAN, VERY NICELY DEPICTED.. THANK YOU... AS I FEEL THERE IS NO BITSHARE vs. BITCOIN ARGUMENT NECESSARY, BUT MORE HOW BITCOIN OPENED DOOR FOR BITSHARE AND MANY MANY OTHER COINS, SMART COINS AND TOKENS...
WHAT IS YOUR OPINION ON SCALABILITY OF BLOCKCHAIN TO BE TRANSFIGURED IN TO LIGHTENING NETWORK?...

I FEEL THAT BITSHARES IS AHEAD OF CURVE AS BITCOIN WAS IN 2008, YET THE IMPORTANT ACCENT HERE IS ON FLEXIBILITY, AND ABILITY TO CHANGE.. AS PER NEED OF HUMANS WHO ARE UTILISING CRYPTOCURRENCY... SO, AS OUR NEEDS CHANGE, THE CRYPTO MARKETS, COINS AND NETWORKS WILL MODULATE AND ADDRESS OUR NEEDS...

I FEEL BITCOIN AS A SOLID FOUNDATION BUILT ON TRANSPARENCY, AND ALL OTHER 1121 CRYPTO'S AND MANY OTHERS TO COME ARE A STRUCTURAL BUILDING BLOCK OF OUR NEW , TRANSPARENT AND SECURE FINANCIAL PLATFORM...

AND AS A THIRD WAVE OF NETWORKS [LIKE BLOCKCHAIN BEING FIRST, LIGHTENING NET SECOND...] WILL ARISE FROM PREVIOUS EXPERIENCES LEAD BY HUMAN INTEREST TO CHANGE AND TO GROW... AND WE COULD CALL IT BIO-SPIRIT NETWORK OR SIMILAR SHIT...

AS WELL, I SEE A THIRD WAVE OF TOKENS, COINS AND SUPER SMART CONTRACTS [ALMOST BIO-CONTRACTS...] THAT WILL ARISE FROM PRESENT 1121 COINS...

SO,, IN MY OPINION NO NEED TO PUT BITCOIN DOWN, FOR SAKE OF RAISING UP BITSHARES OR ANY OTHER COIN... AS BITCOIN RAISE, ALL WILL RAISE ... SIMPLY BASED ON STRUCTURAL INTEGRITY OF BUILDING BLOCK OF BITCOIN AND BLOCKCHAIN...

TO ME, I AM SO EXCITED TO SEE THOUSANDS OF NEW SMART COINS, SMART CONTRACTS, AS WELL TO SEE GROWTH OF INDIVIDUAL SATOSHI VALUE TO COUPLE OF DOLLARS EACH... CAN YOU GUESS A PRICE OF FULL BITCOIN?... JUST MULTIPLY BY 100 MILLIONS.. HEE.. COOL FIGURES COMING OUT IN THIS INTENT EXERCISE... IS IT?...

AND TO SHARE ONE MORE CONCERN OF YOURS, WHERE SUGGESTING THAT ONLY COUPLE OF PEOPLE HOLDING MASSIVE AMOUNTS OF BITCOINS?!...

MY ANSWER ON THIS TRUE FACT IS AS FOLLOW:

  1. SO WHAT... IF THESE ARE GREEDY DUDES, THEY WILL NEVER PART WITH THEIR THOUSANDS OF BTC,SIMPLY BECAUSE THEY ARE DUMB GREEDY...
  2. THESE GREEDY DUDES KNOW THIS BTC/BLOCKCHAIN HAS REAL VALUE, IT IS THEIRS AND ONLY THEIRS, SO THEY WILL NEVER PART IT... TILL THEY DIE...
  3. IF SOME OF THESE BIG BTC HOLDERS ARE NOT GREEDY, THEY WILL CHERISH WHAT THEY HAVE, AND DIRECT IT TOWARD OTHER COINS, PROJECTS THAT WILL BRING TRUE PROSPERITY FOR HUMANITY AS A WHOLE...
  4. THE $RICH DUDES WILL SOON BECOME AVERAGE BTC OWNERS, AS NO ONE WILL CARE HOW MUCH OTHERS HAVE IN THEIR WALLETS, SIMPLY BECAUSE EVERYONE WILL HAVE A SAME CHANCE TO OBTAIN OTHER SMART CRYPTO COINS LINKED MORE WITH HUMANITARIANISM, EQUALITY, SCALABILITY, CHARITY, NON-GREED, HONESTY AND NONCOMPETITION...
  5. THIS IS THE BIGGEST REASON WHY DOLLAR WILL NEVER COLLAPSE, BUT IT WILL BE OUTSMARTED BY SMART COINS IN NEAR FUTURE... WHERE THESE OLD RICH DUDES WILL SOON DIE, AND YOUNG GENERATION OF NEW MILLIONAIRES WILL TURN THIS WORLD DOWN-UPSIDE... AS IT WAS UPSIDE-DOWN FOR MANY CENTURIES... WHERE WE LIVED FOR THE MONEY, AND NOT ALLOWING TO LIVE DESPITE MONEY...

I THANK YOU FOR INTRODUCING YET ANOTHER VERY HUMANE APPROACH TO CURRENCIES AND FINANCIAL WORLD...

BLESSINGS... PREDRAG SAINT GERMAIN...

@stan PLEASE SEND ME YOUR REFERRAL LINK FOR #bitshares COIN PURCHASES..

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Hi predragsaintg, Stan is not guilty of writing the BenchMark he resteemed it. I wrote it, by all means I am not trying to put Bitcoin down.
Bitcoin has been the best thing that happened to us in terms of a financial break and future.

I am just comparing them and based on that I only think it is reasonable to assume that investing in something that is 3 orders of a magnitude better in terms of speed/ transaction costs and overall usibility is probably the way forward.

I am not saying there isn't room for other coins but why wouldn't we go for the best and make life easy for ourselves?

Out of all those coins how many are really worthy of a mention and generally time will be the decisive factor of what coin will hold up.

I just hope by stating facts we attract more people to join Bitshares as I think it deserves more attention specifically also because most people have no clue what BitShares stands for.

If anything in the Benchmark specifically mentions a negative sneer towards Bitcoin let me know and I change it ✌️ I was also planning to Benchmark it to all the other coins, it is just to better clarify where BitShares stands in the great scheme of things.

If a very small percentages owes a lot of the coins and we hit a point of serious panic guess who is going to be left with the crumbles generally. The more topheavy a coin is, the riskier it becomes for new joiners, especially when these topdogs decide that the coin is not sustainable anymore.
It was only a minor point I brought up, but wealth within Bitcoin is quite heavily skewed towards very few, which creates a risk by itself for new investors.

Excellent write up. I feel the same way about Bitshares. Keep spreading the word!

The usability of Openledger and the Bitshares platform, still haven't really got into it yet because theres so few coins.

An effort needs to be made to buy the coins of the whales who are artificially keeping the price low by placing huge sell orders and then selling to themselves (all the while making users think they should sell because the price appears to decline).

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Very good article you covered almost everything.
You forgot the fiat-crypto comparison.
How do we get money from fiat to crypto ? By using BTC mainly.

Also I think you could have added the number of coins emitted comparison.
BTC will never have more than 21,000,000 coins whereas BTS has already more than 2,000,000,000.
And I think it could play a role in term of price market. If there is too much coins with the same marketcap, the price of each coin is much more diluted, much lower.
Other than that, great article.
Upvoting even if it is after 7 days ;)