General information about Peercoin
Peercoin is an electronic payment system that appeared in August 2012. The system is based on the Bitcoin code.
Its founders are Scott Nadal and Sunny King. The latter is the developer of Primecoin. According to some reports, Sunny King is a pseudonym for one or more programmers.
In 2013, Scott Nadal partially withdrew from further participation in the development of EPL Pircoin, therefore, to a greater extent, it is under the leadership of his partner.
Main similarities with Bitcoin
SHA-256 mining algorithm – Despite the fact that Peercoin was created on the basis of Bitcoin, this system has not much in common with the ancestor of the cryptocurrency. Among the similarities are:
If the user wants to switch to another cryptocurrency, then he will not have to change the software. Any equipment that works on the BTC site is also suitable for PPC.
At the heart of Pircoin is a peer-to-peer network that has been slightly modified. Users have equal rights, but the issue of new coins must be verified through a kind of checkpoint. Therefore, the similarities are highly controversial.
The main differences and advantages of Peercoin over competitors
The developers tried to carry out a kind of “upgrade” of Bitcoin, so they worked to improve the operation of the electronic payment system. The result is a platform with its own advantages and differences.
- Principle of operation.
Many cryptographic electronic systems, including Bitcoin, operate on the principle of proof-of-work (PoW). At the heart of Pircoin there is an additional mechanism called PoS – proof-of-stake. It ensures long-term safety.
It is important to note! Peercoin is the first system to adopt PoS.
- Energy saving.
Thanks to the above mechanism of work, the generation of new coins over time requires lower energy costs from users. PPC mining can be more profitable.
- Protection against attacks like “51%”.
In theory, Bitcoin users could join a criminal cartel and break the system. To do this, you need to take possession of half the capacity, after which you can allow double spending of coins. According to the statements of the creators of Peercoin, their system is protected from such attacks.
Disadvantages of PPC
Despite a fairly large number of significant advantages, Pircoin has a number of disadvantages, which is why it is not in high demand. Among the disadvantages are:
- Low turnover of funds.
The popularity of the system is lower than that of competitors. In this regard, the turnover of the cryptocurrency is at a low level. This, in turn, can further lead to a high rise in PPC coins, or to their disappearance from the market.
- Volatile price.
The fluctuation in the rate is partially related to the popularity of the system. If the turnover of funds decreases, then the cost of coins will drop to a critical minimum, and their issue will be meaningless. So the price of Pircoin as of 08/07/2016 is a modest $0.37. Below we take a closer look at price fluctuations.
- Lack of anonymity.
Cryptocurrencies are often preferred due to the promise of anonymity to users. No one can find out where and to whom the funds were transferred and for what purpose. However, Pircoin cannot guarantee this to users, since it has a control center to verify the authenticity of the coins.
Peercoin price analysis
The first appearance of Pircoin dates back to early April 2013. At that time, the starting price averaged $0.40. In the summer period, there was a serious decline in value to 12 cents, so many, fearing the disappearance of this EPL, tried to quickly sell it.
The popularity of the system was restored by its hybrid algorithm for issuing funds using PoS. Thanks to this approach, participants in the system could earn money by keeping it in their wallet. Accordingly, in 2014 the price reached its record high of $7.3. Thanks to this jump, Peercoin’s capitalization was $153 million.
In 2014, there were two similar jumps in the summer, after which the course began to peak. A year later, the value of the coin dropped to $0.76. As of 08/07/2016 the price is $0.37.
PPC system development forecast
The revival of Pircoin is expected only by those who did not manage to sell the currency in time and switch to another system. The main problem with Peercoin was that PoS was the only major competitive advantage. In 2014 and 2015, many new products appeared on the cryptocurrency market, which included not only the advantages of PPC, but also removed the disadvantages. So DASH provides anonymity for financial transactions within the system, and Dogecoin is cheaper and faster.
The growth of interest in Peercoin is unlikely to revive, however, Sunny King has no plans to abandon his brainchild and publishes weekly news on the further development of the system.
User feedback on the PPC system
The programmers managed to create a real giant in the cryptographic currency market. However, cheap emissions have become detrimental to the system. There is a huge number of coins on the market now that are not in demand. According to reviews, the main participants in Peercoin are only miners, but it is difficult to assess the profitability of a system with such a low turnover.
For Peercoin to revive again, as in 2014, it is necessary to actively promote the currency in exchange offices to increase the number of transactions with third-party electronic payment systems. As long as there is no interest in buying currency, its cost will remain at a low level, therefore, it is still hopeless to invest in PPC. More than half of the users believe that the system will not be revived and will disappear from the market in the near future.