Categories: EducationFAQ

What Is Bitcoinereum?

Everyone knows by now that any existing cryptocurrency can be re-issued as a digital token on the Ethereum blockchain. We have seen multiple projects bring Bitcoin to the Ethereum blockchain in the form of ERC20 tokens. Although the usefulness of such tokens remains to be determined, countless competitors have emerged in this space. Bitcoinereum, for example, is another creation which few people will legitimately care about.

Bitcoinereum is Another Waste of Time

Although we are no big fans of Bitcoinereum for obvious reasons, there are some aspects to this new token which deserve some attention. For one thing, it is a minable ERC20 token, which is unlike anything we have seen in this industry so far. In most cases, ERC20 tokens are generated from day one since there is no mining involved whatsoever. Then again, it is rather difficult to mine such tokens to begin with.

According to the Bitcoinereum website, the Bitcoin “supply mechanism” has been turned into a smart contract. Anyone in the world is able to mine this new ERC20 token, as the reward per block is the same as that on the actual Bitcoin blockchain. Fifty coins are generated every 10 minutes at the start, with rewards going down over time. The mining itself occurs through the “mine” function of the smart contract in question.

This confirms there is no actual mining taking place on the network, even though this new function isn’t something we have seen similar ERC20 tokens embrace for some reason. Users can call the smart contract function and get 1 BTCM in return. A total of fifty calls is allowed per 10 minutes, although it is unclear if there is a limit on the number of coins to be earned per user as well. Users will need to pay the Ethereum network fees themselves for every call, though, which may be a downside for a lot of users right now.

Related Post

With a maximum supply of 21 million tokens and rewards halving, an interesting situation is created. So far, there is a total supply of nearly 100,000 generated BTCM, distributed among 500 token holders. There have been over 97,900 transfers already, which is rather impressive. It is unclear what value people hope to see for BTCM, though, as the token literally serves no purpose whatsoever. It isn’t like one can spend this currency like they can Bitcoin – or Ethereum, for that matter – as there is no one who accepts this form of money right now.

While it is commendable that the creator has come up with a smart contract function to “mine” coins, there is no reason for most people to take this concept even remotely seriously right now. There is also no reason to waste Ether or gas on a project like this one, as it doesn’t reward users with a valuable token in the first place. It is certainly possible we will see a higher value assigned to BTCM in the future, as the weirdest tokens and altcoins have successfully gained traction these days.

In the end, we are seeing far too many Bitcoin clones issued as ERC20 tokens. No one has asked for this, and it remains highly doubtful such tokens should even exist in the first place. Then again, it is also doubtful people will stop creating useless tokens anytime soon. They are a booming market, after all. Only time will tell how Bitcoinereum will play out, but we don’t have high hopes for it.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Best Altcoins to Invest in Today: Qubetics Sets the Stage for Blockchain’s Future as Bitcoin Hits $108K and Litecoin Soars

The cryptocurrency world has always been a hotbed of innovation, attracting both seasoned investors and…

5 hours ago

Dogecoin Millionaire Predicts This Undervalued Altcoin Could Match DOGE’s 2021 Gains

Dogecoin's 2021 rally was a historic one, turning ordinary investors into overnight millionaires. This magnificent…

5 hours ago

Qubetics Presale Skyrockets to $7.5M as XRP and Arbitrum Lead Best Altcoins for Exponential Returns

The crypto market is always evolving, with big names like Bitcoin and Ethereum leading the…

6 hours ago

Over 300K Users Actively Mine Crypto On BlockDAG’s X1 Miner App While BNB Bulls Eye $3K; What’s XRP’s Price Target?

The crypto market is ablaze with excitement as altcoins like XRP and BNB make major…

6 hours ago

Best Crypto Presale To Buy Now: Rollblock Delivers For Holders With New License, Record Sign Ups and 7000+ Games

Rollblock is quickly becoming the best crypto presale to buy, delivering unmatched value for its…

10 hours ago

Polkadot And Uniswap Gearing For Post-Christmas Jump As Rollblock Raises $7.4 Million in Presale

While Rollblock's continues its crypto presale, with its value increasing regularly, Polkadot (DOT) and Uniswap…

11 hours ago