Bitcoin has long maintained its status as the world’s largest cryptocurrency. As of now, the crypto captain boasts a massive market cap of $584B. Despite the project’s ‘blue-chip’ status and strong credibility, BTC is not an attractive investment today.
Let’s face it. The coin has saturated and there is no point in holding it in the hope of making multifold returns in 2023. If we could turn back time to 2011, nobody would be able to stop us from investing in BTC for around $1/piece.
But it’s too late now. Or, is it?
🔹Welcome to the world of $BTC20 – The Revolutionary Staking Token 🚀💫— BTC20 (@BTC20Token) July 18, 2023
🌐A groundbreaking PoS #Crypto token built on #Ethereum!
🔥 We pay homage to the original #Bitcoin while introducing a passive income-staking mechanism that empowers our community of #Cryptoenthusiasts.💰 pic.twitter.com/gB18L4awfR
What you'll learn 👉
BTC20 is turning the clock back to 2011
The latest crypto to send the market into a frenzy is BTC20. The Proof-of-Stake (PoS) ERC-20 crypto token is built on Ethereum and opens a unique investment and passive income opportunity this year.
Drawing inspiration from the early days of Bitcoin, BTC20 is sold in the presale stage for just $1 per piece. The initial circulating supply of the token is 6.05 million tokens, similar to Bitcoin in April 2011.
But that can’t be the only thing that has urged crypto investors to flock to the BTC20 presale. The project allows early investors to earn compelling passive income through a substantial share of the rewards released through an Ethereum-based staking contract.
In essence, you can buy the asset for $1 and capitalize on the power of staking.
If the steep bull run of Bitcoin Cash last month is any sign, BTC20 is brewing an explosive action. It could break out any day now, as soon as the presale sells out. Although it has only been a few hours since the project launched, the fast progress of the presale suggests that it is garnering wide social media attention.
How does it work?
BTC20 has a total supply of 21 million. In the presale stage, 3 million BTC20 tokens will be sold at the price of $1. But once the soft cap of 3M tokens is reached, an additional 3.05 million tokens will be made available for purchase before the initial exchange listing. (If there are any unsold tokens at this stage, they will be added to the BTC20 Staking Contract, ensuring a maximum total supply of 21 million BTC20 tokens.)
The remaining 14.95M tokens will go to a staking contract. They are locked in the contract, allowing users to actively stake their BTC20 tokens and earn staking rewards.
While BTC validates a new transaction and mines a new block using proof-of-work in about 10 minutes, BTC20 uses proof-of-stake for better efficiency. But it releases the staked tokens at the same rate as the original Bitcoin blocks are validated.
Efficient and environment-friendly
When it comes to the reward distribution, a predetermined number of BTC20 tokens are released to stakers after every block confirmation. It precisely follows the Bitcoin token release schedule. Interestingly, the project is designed such that BTC20 is minted over a span of approximately 120 years.
It is important to note that Bitcoin rewards miners for every new block mined, whereas BTC20 rewards users for staking their tokens – but at the same rate. In other words, BTC20 gives you the benefits of Bitcoin mining for less effort and environmental impact.
As the staking mechanism unfolds, the circulating supply of BTC20 will expand, nurturing a more decentralized and engaged community alongside.
The Road Ahead
It is indispensable to understand BTC20’s long term vision to analyze its potential as a long-term crypto investment. Here is what the roadmap looks like:
Q3 – Q4 2023: Presale and token distribution
As discussed above, between 3 million and 6.05 million BTC20 tokens will be sold at a symbolic price of $1 each during the presale phase, similar to the early days of Bitcoin. The funds will be pumped to fuel further development, marketing, and strategic partnerships.
Q4 – Q1 2024: Launch and staking activation
In the second phase, the BTC20 team will deploy a secure and immutable staking contract. The remaining 14.95 million tokens will be locked, along with any unsold tokens from the presale round. It will provide users with the opportunity to stake their BTC20 tokens and participate in the distribution of staking rewards.
The more a user stakes, the higher the percentage of rewards they earn. It is designed to encourage active participation and nurture a community-driven ecosystem, aligning with the spirit of Bitcoin.
Q1 – Q2 2024: Development and expansion
In the third phase, the primary goals are to enhance the staking contract’s security and efficiency, explore potential partnerships with strategic players, and expand the utility of BTC20 within decentralized applications. Community engagement and feedback will also be encouraged to foster harmony within the ecosystem.
From 2025: Long-term sustainability and governance
The long-term vision of the project is to reward BTC20 tokens to stakers in alignment with the Bitcoin release schedule. It stretches out over a span of approximately 120 years in a gradual token release mechanism.
The next Bitcoin Cash?
Bitcoin Cash is one of the few cryptocurrencies to grab the spotlight this year. It went on a 300%+ bull run in June 2023 to the pleasant shock of the market. While the bull cycle benefitted most of the market, BCH rewarded investors who bought the dip with generous returns. Bitcoin’s surge above $30K translated to massive gains for BCH holders.
By the looks of it, BTC20 is next in line to capitalize on Bitcoin’s uncontested dominance. But early BTC20 investors are looking at more returns than BCH investors. Being still in the presale stage, BTC20 has a larger room for growth than BCH. If BCH bull run generated 300% returns, BTC20 exchange listing can trigger a 5000%-10,000% breakout even amid a volatile broader market.
The funds raised during the presale will be used for further development of the project, marketing, and the establishment of key partnerships that will drive the growth of the BTC20 ecosystem.
While staking is one of the key attractive features of BTC20, the scope of the token economy extends beyond the staking rewards program. In the coming stages, the token will underpin strategic partnerships, utility within decentralized applications, and governance rights within the BTC20 ecosystem.
As the ecosystem expands, so will the value of the token, further strengthening its fundamentals. Urged by FOMO, investors are hoarding the token before it’s too late. It won’t be long before the presale sells out and the token lists on prominent crypto exchanges, including Binance and Coinbase judging by the social media invasion of the project.
But it’s best not to wait until then. Early investment doesn’t just come with attractive discounts, but also the scope for higher returns.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com