What is Potcoin?
A Beginner´s Guide to Buying, Selling, Using, and Mining Potcoin:
An In-Depth Potcoin Guide by Black Chip Poker
Cryptocurrency Home | Potcoin
The growth of cryptocurrencies has put some famous eyes on the up and coming digital assets. There is a long list of financiers who have plenty of things to say about cryptocurrencies, some good, some bad. As the number of coins increases, there is an increasing pressure for coin creators to add novelty and uniqueness to their coins.
Some have this already by virtue of their status–Bitcoin, Ethereum, and Litecoin, for example. Others double as tokens on a blockchain based platform of some sort. In these cases, the coins function as ‘keys’ that can be used to unlock a platform’s features.
Still others focus in on target markets–these coins are used for specific products, services, or outlets. In this case, the coin’s value is derived partly from its role in a niche market. One coin that embodies this is Potcoin (POT), which launched in February 2014. But what exactly is it, and how does it differentiate itself from the myriads of other coins?
What is Potcoin?
Potcoin is defined as a blockchain, or a decentralized ledger that keeps a record of all transactions that occur on its platform. Because the database is decentralized, it operates independently of central governing authority. Its decentralized nature also means that all users have the ability to audit and verify its transactions.
As an unregulated cryptocurrency, Potcoin doesn’t appear in academic or print media. This means that for further definitions and inquiries, users must go online and conduct their own research. One great source of information is Potcoin’s Reddit page, where a host of questions, answers, and tips can be found. It is not uncommon for developers to make appearances either.
How Do I Buy Potcoin?
There are two primary ways users can buy Potcoins for crypto poker or other uses. The first is through Potcoin’s website. Here, potential buyers can download the PotWallet, Potcoin’s cryptocurrency wallet. From there, Potcoins can be purchased directly with cash, credit card, PayPal, bank transfers or other cryptocurrencies.
The second way is to purchase Potcoins through a cryptocurrency exchange like Poloniex or Bittrex. In this case, users must first create an account with an exchange and fund said account with cash or a credit card. Then, they must purchase another cryptocurrency like Bitcoin. Next, Bitcoins can be sold for Potcoins, establishing a Potcoin position.
How Do I Turn Potcoin into Cash?
In order to cash out of a Potcoin position, users must follow the reverse steps of the processes described above. Potcoins in a PotWallet can be converted to a fiat currency (USD or CAD) and transferred directly to a bank account where the money can be withdrawn from an ATM.
Another way to convert Potcoin to cash is through an exchange. The process takes a few extra steps, but the end result is exactly the same. In this scenario, a user would sell his or her Potcoins for Bitcoins. Next, they would turn their Bitcoins into cash, and from there transfer the funds to a bank where it can be withdrawn.
How to Use Potcoin
Potcoin serves two major purposes. The first is as an investment vehicle. In this case, users can buy Potcoins with the hope that their value will increase by trading activity in the open market. Aside from trading activities, users can simply let Potcoins sit in the wallets and earn them more coins. This will be described in more detail below. Potcoin poker is also a viable use for gamers.
As a decentralized cryptocurrency, Potcoin investors don’t have to fear that central bank monetary policy will dramatically affect their positions. Because they are free from a central governing authority, the same exchange rate risk that impacts fiat currencies doesn’t apply to Potcoins.
The second use of Potcoin is as a medium of exchange. In this instance, Potcoins can be used to purchase marijuana for medical, recreational, or rehabilitation purposes. PotCoin is integrated with legal marijuana dispensaries, and can even be used to give back to marijuana-related organizations and charities. Instead of buying cannabis with fiat currencies or other cryptocurrencies like Bitcoin, users can use a coin specifically tailored to the industry. Its widespread acceptance within the cannabis community as well as its integrated features make it an ideal choice.
What is Potcoin Mining?
Cryptocurrency mining is the process where groups of transactions, called blocks, are verified and added to a blockchain. Miners, those who verify a block, are tasked with solving a set of problems related to the transactions. Once the tasks are completed, the block in question is added to other blocks, forming the blockchain. This is one of blockchain technology’s most incredible feats–by the mining process, any user is able to independently audit and validate the transactions on a blockchain.
For their computing power, miners are rewarded with crypto coins–usually the coin of the blockchain they mine. Miners also have mining calculators at their disposal. These calculators let miners scope out the processing power needed to mine a certain block, as well as calculate the payment they will receive if a set of tasks is completed.
Miners have the option of mining solo or in a group called a mining pool. When miners mine solo, they typically have lower computing power, but are able to take home all of the profits. When they mine in a pool, computing power is generally higher, but overall profitability is lower because the reward is split with multiple miners.
In the past, Potcoin was mineable; however, the coin switched to Proof of Stake Velocity, so no further mining is needed.
How to Mine Potcoin
Though Potcoins are no longer mineable, the blockchain follows the Proof of Stake Velocity protocol (POSV). This protocol is analogous to compounding–the coins in one’s wallet automatically check transactions to make sure the transactions are legitimate and as this happens, blocks are added to the blockchain. Out of the coins that are ‘staking’ or being held in a wallet, one is chosen every minute or so, and the owner of said coin receives newly created coins. Thus, users can ‘mine’ by simply holding Potcoins in their wallet. The return is about 5% a year, all for simply holding coins–similar to how compound interest works. The more coins one has, the more likely he or she is to receive new coins.
How will Potcoin Scale?
Like all blockchains, Potcoin faces a scaling problem. The Potcoin team is carefully monitoring developments in scalability, but to date a longterm viable solution has yet to surface. Nevertheless, the team is hopeful, and as demand for their coin increases (indicated by their price chart), scaling the blockchain to process more transactions per second will be a major goal.
Potcoins are a novel coin that have a history of success as both an investment option and a medium of exchange, particularly for marijuana. In addition to price gains, Potcoins have demonstrated their viability as a transaction vehicle. What’s more, Potcoin can be used for crypto poker.