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Why BitShares Needs a Place in Your Portfolio

12 February 2018 1:54 pm

In the ever-increasing world of cryptocurrencies, there are just so many choices for what you can, and should, invest in. But with so many options out there, it can be difficult to keep your head straight and really see through all the fuss to determine solid choices for long term investments. You might be aware by now that there are more than 1,400 different cryptocurrencies being bought, sold, and traded everyday on the major exchanges. Just take a look at the list on CoinMarketCap and scroll through the countless coins and tokens offered to see just how many there are (there are a lot not yet listed on CMC too, by the way).


But what about a strong project with a solid team and product that delivers actual value to the industry? How do you go about finding and investing such a project? Well, today we’re going to breakdown the reasons why BitShares is exactly one of those projects.


Platform, Platform, Platform


Take a look at any of the most successful long term investments so far and you should quickly notice a common theme: platform plays. Perhaps the most obvious example of a successful platform development is the current state of Ethereum. Starting off as a small “altcoin” in its beginning stages, Ethereum has seen awfully impressive growth since its inception to skyrocket to the number two spot in the cryptocurrency world by market capitalization.


Why did Ethereum (ETH) do so well? The biggest factor to consider is that not only did Ethereum provide a new blockchain based cryptocurrency and offer a coin, Ether (ETH), but Vitalik Buterin and the team designed a platform that allowed for others to capitalize on the technology being introduced. Currently, if you go back to the aforementioned CoinMarketCap, you’ll notice a lot of ERC20 tokens (like coins, but they’re actually all running on the Ethereum platform).


Likewise, NEO (NEO) has had an incredibly successful year in 2017 too. Platforms have historically been excellent choices for the long term. As new projects are build on the platform and utilize the underlying technology, the parent benefits greatly (again, think of all those ERC20 tokens out there and, while some have done very well, ETH has seen exponential growth because of it). But why does any of this matter? What if I were to say that BitShares is also a platform play, but an improvement from the current Ethereum network? Would you even believe that it’s better than the behemoth that is Ethereum?


Simply put: it is. BitShares is not only a decentralized financial platform, but it’s been built specifically to outperform the likes of Ethereum and NEO. Now let’s a look at how.




There’s no doubt that Ethereum has been an impressive improvement from the classic Bitcoin protocol for transaction times and fees associated with it, but let’s take a look at Ethereum vs BitShares. Borrowing charts from @YoBanjo, who was kind enough to do a fact check on Dan Larimer’s claims and who also completed a side-by-side comparison of the two platforms on Medium, we can see the daily transactions for the Ethereum topped out at a little over 400,000 transactions in a day (a pretty impressive amount).


Ethereum Transactions


Not too bad, is it? Now let’s take a look at the BitShares platform in the same time frame. Unlike Ethereum, BitShares actually successfully completed over 800,000 transactions, wow. 


bitshares transactions


That’s nearly double the amount at both of their highest peaks. Bitshares is showing incredible potential for growth seeing as it can clearly handle the increased traffic!


Custom Asset Issuing


Another aspect to consider with the platform is what the BitShares team offers in terms of expanding the use of the platform. This part of the platform is similar to Ethereum’s ERC20 tokens but again, engineered and built with scalability in mind.


Users on the BitShares platform can develop their own assets, issue out tokens on the network, and decide on their own distribution of the tokens, fees associated with it, and the nature of its use. The crypto markets have already seen tremendous success with these types of systems, and BitShares is determined, proven, to be an improvement from the status quo.


Smartcoins and Other New Technology


The most unimpressive thing a new cryptocurrency can do is offer absolutely nothing new to the markets, and there have been plenty of those. BitShares breaks the mold and is constantly developing strong improvements and innovations in the space for the future.


One of the more recent developments is the creation of what the team calls a “smartcoin.” A smartcoin is a crypto asset that is directly backed by another asset and tied directly to it mathematically. Unlike other assets that hope to maintain a similar value to other assets, the smartcoins are pegged to common assets like the US dollar, gold, or other cryptos!


The most recent addition to the team is the HERO coin which is considered to be a “formula pegged asset” (FPA), meaning that no matter what the markets do, the coin will always be worth the price of the US dollar +5% each year. Pretty cool, right? The idea is to help new investors navigate the intimidating world of cryptocurrencies with some peace of mind, and to bring widespread adoption for crypto assets more broadly.


Put it all Together


After taking a look at the various reasons for certain projects outperforming others in the long term, we can get an idea for just how undervalued the current BitShares network is. So many people are already considering 2018 to be the unofficial “Year of the Altcoins” Bitcoin had its parabolic growth over 2017, but now it’s time to focus on other technology. Bitcoin will almost certainly steadily rise over the coming year with more publicity, but a proper portfolio needs to account for a certain amount of diversification as well.


Why not focus on the best possible tech coming out this year? BitShares not only accomplishes some of the more exciting aspects of the growing cryptocurrency world, but even makes substantial improvements on the already existing technology. It’s time to start letting some of the newer, better technology and platforms come forward, and BitShares is one of the most likely to see significant growth in the long term.