/biz/ - Business & Finance

It's fairly straight forward: once Ethereum goes proof of stake (expected to happen within the next year), 0xBTC will become the only proof of work currency with a decentralized distribution that can be used in trading pairs with other tokens on the Ethereum network.

Obviously, tokens issued in ICOs lack the fair distribution that would allow them to be effective for trading into other tokens (look up any token on etherscan and view its token holders page -- you will never find a token other than 0xBTC where the top 100 owns less than 60% of all tokens). Additionally, 0xBTC has advantages over "stablecoins" or stable tokens in that there is no third party to worry about. See Tether for example: it's unclear if the founders of Tether actually have enough USD to back each Tether. 0xBTC avoids that human point of failure by being autonomously distributed through a PoW-mining system. The 0xBitcoin name isn't just for kicks -- just as Bitcoin functions as a PoW entry into purchasing other coins, so will 0xBitcoin function as a PoW entry into purchasing other tokens.

One last point: proof of work mining is not meant to secure the network, it's meant to distribute the coin fairly. Often times I see people critique 0xBTC by saying that PoW mining is a waste as it's not securing a network. Again, the PoW mining is meant to ensure fair distribution (just as it does for BTC), which thus makes 0xBTC an attractive option to pair with other tokens. As of today, 0xBTC's most obvious use case is as a trading pair for other tokens once Ethereum goes proof of stake. However, there are other developments going on with this project that you should investigate here or on the discord.