what is Peercoin
Peercoin – comeback or the end
Peercoin was considered to be a cryptocurrency with promising outlook. Nobody expected that it can put any competitive pressure on Bitcoin or other major cryptocurrencies, however users believed that Peercoin could grow up and carve out a good niche on the global market.
Peercoin was created in 2012 and quickly appeared on various online exchange services – it was being sold for less than $0.4. Users highly appreciated quite good combination of PoW and PoS methods: proof of work was used at the initial stage only and its function was to distribute the coins evenly among the miners considering capacity of every computer. However later proof of stake was the main method meaning that more coins would rather be given to users who already have a bigger amount of them than to the people with the most powerful computers.
There was a real madness around Peercoin – in November 2013 it cost more than $7! Of course, it looked like a large bubble that is going to burst once. And it happened. Anyway, those who bought the coins with the exchange rate of 10 000 PPC for one BTC and managed to sold it timely earned more than $70 000 for every BTC! Could you imagine this? For good or ill, everything ends and especially the things letting people earn vast sums of money for short period of time.
The great Peercoin story ended in 2014 when PPC price dropped abruptly and once coin was sold for $0.4 again. Since then Peercoin/USD exchange rate has been slightly changing, although no optimistic outlook is seen now.
Recently Peercoin dropped even lower – down to $0.23 per coin. Those who had some intentions to purchase it decided that it’s too risky asset, although Peercoin suddenly went up. Today it costs slightly over $0.26. Any experienced investor would say that Peercoin is undergoing a very tough period and there are two ways out – either stagnation will gradual loss of value or an impressive comeback.
The reasons of such disappointing results are obvious. Developers missed the right moment for introducing proper software and environment for Peercoin. They didn’t care properly about availability of PPC to all potential customers and now mostly inveterate “miners” know about Peercoin.
Actually, miners are now they only ones who still have faith in this cryptocurrency. Peercoin is a great solution for a beginner who has just started mining as it’s possible to mine a decent number of coins and then sell them. You’ll hardly earn a fortune on it but you won’t go bankrupt either as Peercoin mining is known for outstanding energy saving. Some say that PPC needs 100 times energy less than BTC for mining!
Please note that we cannot guarantee that, but it’s quite a popular stereotype among miners. So maybe it has something to do with the truth.
The good news is that Peercoin developers are going to introduce several new features in the end of 2016 and in 2017. So let’s wait patiently and hope they will manage to push PPC back to the top.
Advantages of Peercoin
Earlier we have mentioned very well-balanced use of PoW and PoS methods. It’s the first significant advantage all Peercoin miners and owners can enjoy.
The second one is about security. Many cryptocurrencies remain vulnerable for so called “51% attack” when one user has 51% or more capacity of the entire system. Actually, Proof of Work and Proof of Stake deal perfectly with such kind of threat and with all other risks. There was no incident yet with Peercoin.
For example, comparing security offered by Bitcoin and Peercoin developers we would choose PTC. Let’s imagine a situation when a significant number of miners suddenly decide to join for hacking the system. That’s sad, but they have all the chances! However, it won’t work with Peercoin.
It’s rather difficult to explain all the details but the reason is that BTC and PPC are different systems with different approach to security. You can easily find more specific information about this on any cryptocurrency forum – just ask the old timers and they’d gladly explain.
Finally, we would like to call low price for Peercoin its third apparent advantage. It’s high time to invest in a risky asset which can either bring you a great benefit or let you down. More than that, considering that Peercoin developers don’t give up and work on updates we are pretty sure that PPC will not get much cheaper than it is now – in the worst possible scenario, of course.
But there is a high probability that its price will grow. So we suggest you monitoring cryptocurrencies market and make the right decision basing on the exchange rate dynamics.
An obvious disadvantage
There is only one apparent disadvantage of Peercoin which annoys all the users – lack of anonymity. Bitcoin and the majority of other cryptocurrencies offer 100% or almost 100% anonymity and that’s what attracts people. The cryptocurrencies idea itself states that Internet users have the right to be free in sending, spending and receiving money.
But Peercoin creators have a bit different vision. They try to convince PPC owners that the control center for coins identification provides better security. Well, probably it does, however it also saves your personal information. Unfortunately, there is no guarantee that this data will never be disclosed to third party or governmental organizations.
If you are not going to use Peercoin for sending or receiving thousands of dollars every month you don’t need to worry, though. Small sums will hardly be interesting for anyone.
Peercoin is a great example of the Wow effect impermanence. People rushed to mine and buy it raising PPC price to a very high level. The developers were astonished and thought it would always works like this. So when Peercoin dropped down they didn’t have any effective tools for reanimating it. They simply didn’t expect anything like that.
So we will see soon if Peercoin developers evaluate the current situation right and if they know how to make this cryptocurrency attractive for investments again.