Is bitcoin the only trustworthy cryptocurrency?
Won Jae-yeon’s One Pick ④ BHP The only cryptocurrency left that’s trustworthy is bitcoin (BTC). Expectations that after the BTC bullish rally, an altcoin rally would soon follow have been crushed. Even Max Keiser, a famous bitcoin bull, has said that the era of altcoin has come to an end. It seems that with bitcoin now accounting for more than 65 percent of the market, in order to survive, it would be best to own the little bitcoin there is. Changpeng Zhao, Binance CEO, said he expects some of the altcoin to rally soon. But what’s the chance that the coins that you’ve picked will be the one that rally? One small hope for those that can’t give up on altcoins is BHPCoin (BHP). When staking its coin, BHP will be distributing bitcoins that it has mined. Distributing BHP mined bitcoins? BHP is a coin that is tied to BTC, issued by Wei Kuang Technology, which holds roughly 3 percent of the BTC that is mined around the world. BHP’s affiliate Hash2One, which created the decentralized finance platform DeBay, is a start-up that is based in the Bahrain fintech hub. The investors that purchased BHP coin, whether through the cryptocurrency exchange or other means, will be receiving a certain amount of bitcoin that Wei Kuang Technology has mined when placing the BHP coin on DeBay. Cloud mining? Simply put, it is a type of cloud mining. Cloud mining is where bitcoin or other types of cryptocurrency are placed in a mining pool. The participants then receive a certain amount of coins that are mined from the mining pool according to the ratio of the amount that they have deposited. BHP as a utility token acts as hash power and a credit guarantee on mining rights. Hash2One’s capital management is under the oversight of the Bahrain central bank. The goal is to become the JP Morgan and Visa of the cryptocurrency market BHP ultimately wants to become a bank of hash power cash. While running a bank isn’t going to be easy, BHP, through its token, hopes to establish a decentralized bank by launching various financial products in the long run. It is currently developing BHPay, where payments can be made through BHP coins and bitcoins. Is the principle investment guaranteed? While getting a regular distribution of bitcoin seems promising, the principle investment can shrink if the value of BHP falls. But to ease such concerns, DeBay is offering cloud mining products that are staked against USDT, the U.S. dollar and BTC. The investors receive the USDT, USD and BTC equivalent to the principle investment when the product matures. For example, if you stake 1 BTC when a single bitcoin is valued at $10,000, if the same 1 BTC is valued at $5,000 when recovering the investment, you get 2 BTC to equal the value of the original investment. No guarantee on principle The purpose of the DeBay platform is to increase BHP staking. Because BHP itself acts as a credit guarantee, if it fails as a utility coin its value will be worthless. It is best to be cautious in investing in the platform as it is not yet in service.