Peercoin is a decentralized cryptocurrency that is based on Bitcoin. The main difference between Bitcoin and Peercoin is that Bitcoin uses Proof of Work whereas Peercoin hosts a Proof of Stake system (more details on this later). Peercoin is an innovative altcoin with a bright future.
Difference between proof of work and proof of stake
Proof of work and proof of stake are both systems that cryptocurrencies use to prevent double dipping (spending coins more than once), and to confirm transactions. In proof of work, miners have to try different hashes till they hit the correct one. Once a correct hash is hit, a new block is generated, confirming and locking in all recent transactions. In this system, the people who have the most expensive equipment end up mining the most blocks. In proof of stake, the more Peercoin you own, the more Peercoin you can mine! This system saves resources like electricity and encourages miners to own the coin.
Can I grow Peercoins?
Yes! 30 days after a Peercoin is made, it is available for a process called mining. Unlike Bitcoin, where mining can be done by anyone, but requires huge computing power, Peercoin mining can only be done by Peercoin holders and on a regular computer at that! Peercoin mining, or minting as their website calls it, yields a one percent annual reward for setting up an auto script on your computer. This is a safe and secure way to grow your Peercoins.
What is Peercoin’s price outlook? Is it going to go up or down?
Unfortunately, it looks as if Peercoin’s best days are behind it. Since its start in 2012, Peercoin reached a high of about 2 dollars in 2014. Since then, it has dropped significantly, trading for around $0.42 today. Still, Peercoin definitely has potential to come back and become successful. My guess is that Peercoin will remain stable at the $0.30-0.70 range, not dropping or gaining too much. It’s a relatively safe investment, but as are all investments, there is still a risk to lose it all.
How can I get my hands on some Peercoin?
Well, since Peercoin uses a proof of stake system, you will have to buy some with fiat money. There are many exchanges to buy some, which you can find at Peercoin’s website.
Once you have found an exchange, you will have to download a Peercoin wallet. Make sure the wallet is in a safe private computer because if someone hacks your computer or if you lose your computer, you lose all your Peercoins. Once you have the wallet downloaded, send fiat money to the Peercoin exchange of your choice, purchase your Peercoins, and have the exchange send the coins to your wallet!
Why is Peercoin better than other altcoins?
Peercoin was the first coin to use the proof of stake system. Peercoin has been around for 4 years now, so it’s price is a lot more stable than newer altcoins. In the end though, it’s your job to decide if Peercoin is a good investment or not. While it’s not the alt coin of the future, it is definitely an important alt coin. I hope this article helped you, and see you next time!