One of the older cryptocurrencies in the market is bitCNY. Its ticker symbol is BITCNY. It was launched in September 2014. In its consensus, it utilizes Bitshares method and is based on N/A algorithm. As a decentralized alternative currency, bitCNY is pegged to the Chinese Yuan whereby each bitCNY is equal to 1 Yuan. Bitshares was launched as a user-friendly decentralized exchange trading through the use of smart coils. Among the Smart coils in the market today include BitUSD, BitCNY, BitGOLD, and BitEUR. They stand out because they share the price stability and volatility of their associated Fiat currencies.
How does bitCNY work?
The demand for the bitCNY digital currency comes from users wanting similar purchasing power as that of the Chinese currency. This altcoin enables the users to transact just as they would while using the Yuan. Upon getting bitCNY, a yield comes from a typical interest pool for each bitCNY holder which is then diluted among these holders. It uses blockchain technology to make sure that it becomes a relevant currency just like the Fiat currency.
The bitCNY is backed by a development team. However, sales or marketing personnel are absent. The growth of the coin is further impeded by the fact that the developers haven’t published their bio or social profiles. Unlike many of the newer cryptos of 2017, the team of this crypto is not active on social media channels.
The performance of bitCNY cryptocurrency
BitCNY being a market-pegged digital currency is unique in that it follows the actual price of the real currency very closely. To make sure that it behaves in the desired manner, it was established using Bitshares using the leveraging prediction markets software currency value. The Bitshares exchanges use typical price feeds which are published by delegates. This helps in getting the actual price of gold, silver, Yuan, USD and other currencies and assets from around the world.
Like Ripple and Bitcoin, the price of bitCNY surged at the beginning of November 2017. The price went to as high as $0.17 and the market cap at the time was $80 million. The price of the altcoin has remained more or less the same and the fluctuations haven’t been significant. On January 17th the price of the coin soared to touch $0.193 and then dropping in the following days. The coin reached an all-time high of $0.1938 on February 6th and market cap was $39 million while volumes traded were $102 million. The price has since dropped to $0.169 as at 0900 CET on 8th February.
How does the future of this currency look like?
The bitCNY cryptocurrency is one of the stable cryptos today. It has retained an average price. The crypto doesn’t seem to sway according to the movements of Bitcoin or any other major crypto. Because it is pegged to a controlled currency, it, therefore, becomes important that a trader holding it should observe how the Chinese Yuan is behaving in the world of Forex. This might be tricky because the Yuan is tightly controlled by the government and nothing much of speculation is possible unless you can get access to government information. Still, it is a good currency to speculate with.