By
Bena Ilyas
April 18th, 2024
BitGesell coin (BGL), the crypto project that has dedicated itself to overcoming the shortcomings of existing cryptocurrency through a decentralized architecture and improved scarcity models, has now gained listing on Hotbit Exchange, further cementing its claim as the successor to Bitcoin as true digital gold.
With this latest listing, it has become clearer that stakeholders throughout the digital asset ecosystem are slowly beginning to accept the idea of improved hard-coded features on BGL that are designed to better achieve Bitcoin’s vision of scarcity and a store of value. With transactional burns, smaller block sizes, and higher fees for smaller transactions, BitGesell is proving itself to be a truly viable model with incentives for every participant of the network, from miners to users, as well as for investors and enthusiasts.
Now, anyone can own and hold BGL by accessing offers on the open market, allowing public and wide access to the opportunity of true digital gold.
Why Bitcoin’s Role as Digital Gold Should Be Questioned
Bitcoin’s place in the industry is undisputed. It is the most liquid crypto and the most widely available, yet does it really hold the values needed to be digital gold?
Bitcoin used to be sent as money from person to person, hence the term P2P digital money, but as fees to send BTC and the delays pile up as the blockchain struggles to keep up with demand, more crypto users are using faster and cheaper alternatives.
Just three years ago, it was possible to send Bitcoin transactions and get confirmed with just fractions of cents, but today, you have to pay dollars to get confirmed in the next block – making Bitcoin fees rise this year alone more than 2,200% on average.
While others are now proposing new micropayment solutions like Lightning Network, this solves scalability but at the cost of miner incentives – as none of these transactions will send any fees to miners, giving them less incentive to keep securing the network. Compound this with halved rewards every four years, bigger block sizes with SegWit, and higher TPS as Segwit adoption grows, how will miners ever rely on block subsidies or fees in the long run?
When miner capitulation happens, difficulty will continually go down, taking security lower and lower. Can Bitcoin really store value long term in this way?
Why BGL Scarcity Is the Real Deal in Deflationary Digital Gold
BitGesell Head Developer Emma Wu acknowledges that Bitcoin’s economic model was perfect: a fixed monetary supply, with new supply being introduced at a gradually reducing rate, means a deflationary model that has never been tried before in modern money.
But the problem with Bitcoin is that it is slow in achieving this. It will be decades before Bitcoin reaches its maximum supply, and halving only happens every four years, while it is deemed that block efficiency will continue to grow.
BitGesell takes scarcity even further. It copies Bitcoin’s 21 million maximum coins, but it also actively reduces this maximum possible supply even before every BGL is mined!
This happens mainly with what is called a transactional burn, in which 90% of every BGL sent as fees to miners will be automatically destroyed.
Token burning, or removing tokens permanently and preventing them from ever being spent, is a basic demonstration of supply and demand. Burn tokens and you reduce the supply permanently, increasing the price pressure at equal or increased demand.
In other words, the more scarce the commodity, the more expensive it is. Just like gold.
Unlike gold, however, which only has a 1.8% annual extraction rate but a far away finite date of extraction, or unlike Bitcoin’s decades-away date, BGL’s 21 million cap will be hit in a mere few years.
This, combined with token burn, shorter halving times and smaller blocks, will create an intense deflationary pressure that will see BGL achieve Bitcoin’s vision quicker and more efficiently.
In summary:
- Reducing block sizes to 10% of Bitcoin blocks, combined with much higher fees, ensure people only use BGL for large transactions. This keeps miners incentivized, and rewards holders.
- Increased supply deflation with transactional burning, by removing 90% of all fees out of the system.
- Annual halving to reach zero emissions in just a few years.
Moreover, a community wallet that is specified in the BGL genesis block itself will receive funds for future growth, to develop and ensure the ecosystem thrives. All funds to and from here is publicly searchable on the blockchain and will be reported to the community as part of BGL’s commitment to build and expand the blockchain’s infrastructure.
To learn more about true digital gold, visit the official BitGesell website. Get your hands on BGL now via Hotbit Exchange.