Burstcoin (BURST) Review (UPDATED 2018): A Beginner’s Guide | VKOOL

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Most cryptocurrencies must be “mined” in some way, to increase supply and provide incentive for miners to get involved. Generally this mining is in the form of “proof of work,” something which takes up lots of energy and electricity (leading to headlines about how Bitcoin mining takes up more electricity than some nations).

Burstcoin is different. Its a cryptocurrency that uses a new process called proof of capacity, a process that's so efficient and energy-conservative that you could even do it from your phone.

Interested in knowing more? Check out the following guide to find out more about Burstcoin, its features, how it works, and how it might change the way we approach crypto mining.

Oh, and if you haven't checked out our new list of the best altcoins of 2018, click here and see which ones made the cut.

The Burstcoin Method: How It Works

As we said earlier, most cryptocurrencies use proof of work to “mine” coins. In this system, miners are rewarded for successfully discovering a specific combination of letters and numbers, which takes up computer processing power. What this means is that to mine more coins, you need more processing power, and more energy, leading to large-scale operations where massive resources are spent so that miners can mine more and more coins. The more energy you dedicate, the bigger the reward.

Burstcoin doesn't require this. With their proof of space method, it's the more hard drive space you dedicate that earns the bigger reward.

It's automated, so you just plug in a hard drive and start the process. It doesn't take more energy, it doesn't change your electric bill much, and it can be stopped at any time.

The way it's set up, anyone can get involved cheaply. This is different from Bitcoin mining, which requires spending lots of money on equipment to get involved.

Other than that, it's your standard cryptocurrency: it's build on a blockchain for recording transactions and keeping things secure, you'll be able to trade assets and sell or auction digital items.

History of Burstcoin

The project was first introduced in 2014. It was created using the Nxt platform as a starting point, so it contains some similar features. While the initial developer was anonymous, the project has since been stewarded and developed by the Proof of Capacity Consortium, a group of volunteers from the crypto community. The democratic, volunteer-led team makes this currency seem less corporate than some other crypto platforms. It looks better when you don't have a bunch of financiers and corporations behind your currency.

Burstcoin's Progress

One of the main things on the PCC's agenda is creating a network that can support larger transactions without sacrificing resources or speed. They hope to set things up so that the more people use the Burst network, the more transactions it's capable of.

They're also planning to change up the fee system, replacing the current 1 Burst minimum fee with a dynamic one that can change depending on the transaction and traffic levels.

Burstcoin and Mining

Right now, according to the way the team sees it, if you dedicate a terabyte of hard drive space to the Burst network for mining purposes, you'll average 21 Burstcoins every week. At the end of 2017 there was already 150,000 terabytes dedicated by users to the service.

To make things more user-friendly, Burst has a wallet that offers a tutorial that helps you to set up your hard drive to start mining immediately. Since people can do things on their own without need of a central team handling things, Burstcoin is an example of a decentralized system.

Lots of coins are decentralized, and Burstcoin isn't the only one. Our new list of 2018's best altcoins has other decentralized that are looking like they could change the landscape.

Burstcoin and Sustainability

Unlike other cryptocurrencies, Burstcoin had no ICO (initial coin offering) and no pre-minted supply of Burstcoins for backers or team members. That means the supply has had to be mined from scratch. As the number of Burstcoins increases, the amount mined in the creation of each block goes down, until all of the roughly 2.1 billion Burstcoins are mined.

The Trading History of Burstcoin

As you'll see from the below graphic, the price of Burstcoin has been pretty even overall, but it had a jump in value after John McAfee (programmer, founder of McAfee antivirus software) tweeted his support of it. Further increases in value came after announcements of the platform's white paper and the intention to develop scalability.

Buying Burstcoin

You can just mine Burstcoin yourself, obviously. However, you can also buy it outright from exchanges like Bittrex, Coinroom, and Poloniex. This option may appeal more to people who want to own and use Burstcoin. Others may be more interested in mining it for profit. Considering the low value at the moment, it should not be the sole reason for you to mine, however.

Storing Burstcoin

Right now it looks like you can only store Burstcoin in the official wallet, which you can download from the main site. They have a mobile wallet, but right now it's only available for Android. This might change in the future, and it would benefit Burstcoin to add more wallet functionality. It would support the user-driven, decentralized philosophy of the service. It would also make it more popular. The addition of more mobile apps will also add to its success.

Burstcoin vs Storj

These are two very different services. Burstcoin is a cryptocurrency that is mined by dedicating hard drive space to mining, from which you can earn Burstcoins. Storj, on the other hand, is a decentralized cloud storage service where people can sign up to have their hard drive space “rented” by other users for a fee. Both feature earning money with hard drive space, but they go about them in different ways. Both are based on the idea of decentralization, a more democratic way to go about cryptocurrency mining and cloud storage, respectively. Burstcoin is relatively newer, while Storj is a more complete product.

Burstcoin vs Siacoin

These aren't quite the same platforms, so it's hard to compare the two. Siacoin is another cloud storage service where people can rent out their hard drive space. Burstcoin, on the other hand, is just a cryptocurrency that is mined by dedicating hard drive space to the mining operation. Again, both feature ways to “earn” using hard drive space, but that's about all there is to compare between them. As of this article, both coins were trading around the $0.02 to $0.04 area. Burstcoin is a currency that can be mined and used to pay for goods and services, while Siacoin is an in-house token distributed and earned during transactions, but it cannot be mined. Both can be purchased from Bittrex and Poloniex.

Burstcoin vs Bitcoin

These cryptocurrencies are fairly similar, but they differ in some pretty significant ways. Burstcoin is a cryptocurrency that uses proof of space as a way to mine, using less resources, and allowing people to get involved with less money up front. Bitcoin uses proof of work to mine its coins, which requires computers and processors that take up an enormous amount of energy to solve the arbitrary calculations that earn miners their Bitcoins. Burstcoin was created with low costs and user-friendliness in mind, while Bitcoin has a steeper learning curve. Burstcoin is brand new and still in its infancy, while Bitcoin has been around for years.

Frequently Asked Questions

  1. Where can I buy Burstcoin?
    You can buy Burstcoin on major exchanges like Poloniex and Bittrex, among others.
  2. What is the Burstcoin calculator?
    It's a third-party program that takes you current hard drive space and uses it to calculate how much you would earn by dedicating it to Burstcoin mining.
  3. What's the price of Burstcoin?
    Right now it's hovering between $0.02 and $0.04, but the price fluctuates.
  4. Does Burstcoin have a wallet?
    Yes, it has its own official wallet made by its developers, and it can be stored on the Android Burstcoin wallet app, but that's it for now.
  5. Can I convert Burstcoin to USD?
    It depends on the exchange you're using and whether it supports that trading pair.
  6. Where can I read about Burstcoin news?
    You can check out their Twitter, or keep tabs on crypto blogs.
  7. Is there a Burstcoin Reddit?
    Yes, you can read about it out on Reddit, where there's a small community dedicated to it.
  8. Does the Burstcoin Profitability Calculator work?
    Probably.
  9. Can I buy Burstcoin on Coinbase?
    Not at the moment, no.
  10. Can I buy Burstcoin on Poloniex?
    Yes, you can.
  11. How does Burstcoin mining work?
    You dedicate a certain amount of hard drive space to calculate the hashes that produce new blocks in the blockchain, after which you are rewarded with Burstcoins.
  12. Is there a Burstcoin mining rig?
    A rig for mining Burstcoin would basically just be a computer with several large hard drives connected to it.
  13. How many Burstcoins will I earn per block?
    Initially the reward will be 10,000 Burstcoins per block, but the rewards will go down with time.
  14. What's the best Burstcoin wallet?
    It's definitely the official one – because it's really the only one.
  15. Does the Burstcoin wallet work for Mac?
    Yes.

Conclusion

Bitcoin has gotten some flack recently for the huge amount of energy wasted in mining it – one person famously got brain damage from heat stroke caused by the machines in his room – and as people start to take cryptocurrency more seriously, people are considering how to make it more sustainable on larger scales. Burstcoin was developed for just that reason, coming up with a  way to maintain a coin's value, keep the platform decentralized, and keep things efficient, all while conserving energy and eliminating high start-up costs for miners.

As Burstcoin enters the new year and introduces new features, the value might go up, making it something you'll want to keep your eye on. And if Burstcoin's got your attention, you owe it to yourself to check out the other altcoins that you should be keeping your eyes on in 2018.

Peter Lehmann

Peter is a blockchain investor and cryptocurrency writer at Vkool.com. Since 2014 Peter has advised blockchain startups and ICOs on content marketing, strategy and business development.

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