It has been a while since a new Bitcoin fork came around. As such, it seems someone decided to create a “fork” which makes very little to no sense whatsoever. Bitcoin Oil is the name, and it appears to be a proof-of-stake currency which will introduce a lot of improvements Bitcoin should have received by now. It seems unlikely that too many people will pay attention to it, but it’s good to be in the know about these things regardless.
Bitcoin Oil has Arrived
It is not the first nor the last time someone will create a new currency which has the Bitcoin tag in it. Playing on the marketing angle of the world’s leading cryptocurrency is one option, albeit one that doesn’t go over too well with the overall community. As such, one can safely say Bitcoin Oil is already contested, simply because of its naming strategy.
It is evident this new fork will face an uphill battle. As such, the developers will do what they can to create the “most technologically advanced version of Bitcoin” the world has seen to date. Actively minimizing the volatility aspect of this currency will be one of the bigger challenges to overcome. The developers think they can do so through an incentive-based economy, and using proof-of-stake for the distribution.
To put this in perspective, the developers will ensure price stability through holders’ loyalty. While that concept sounds great on paper, the real world functions quite differently. Holders of any currency will not hold those balances indefinitely by any means, as they will cash out or diversify at the most opportune time. It seems unlikely any BTCO holder will act differently, albeit one never knows what may come of this particular project moving forward.
Additionally, the use of PoS will ensure Bitcoin Oil is more energy-efficient than the real Bitcoin. Combined with true privacy features, smart sidechains, and a strong focus on scalability, this fork seems to be an interesting contender. The bigger question is whether or not anyone wants to create ICOs or STOs on this chain, even if smart contracts were ever introduced in the future.
What is rather interesting is how Bitcoin Oil will allegedly have a capped supply despite its proof-of-stake ecosystem. That is something to keep an eye on, although it might not be something most people will lose sleep over either. To compete with the original Bitcoin, the network will also maintain low transaction fees. If fees were Bitcoin’s biggest problem, things would look very different by now.
While every new cryptocurrency project deserves to be given a fair chance, it seems rather unlikely Bitcoin Oil will amount to a real contender. So far, only Bitcoin Cash made a meaningful impact, and even that project has received a lot of criticism since its inception. This community is not waiting for more “forks” of Bitcoin by any means, but it seems unlikely this trend will come to an end anytime soon.
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