What is TokenCard?
A Beginner´s Guide to Buying, Selling, Using, and Mining TokenCard:
An In-Depth TokenCard Guide by Black Chip Poker
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According to reports, there are over 1,000 cryptocurrencies available for trade. In comparison, there are just 180 world currencies. The youngest currency is the South Sudanese pound, which was made official in 2011. World currencies correspond to different countries or groups of countries. For example, the U.S. dollar is used in America, the Euro is used in the European Union, and the won is used in South Korea.
Since cryptocurrencies don’t correspond with specific countries–they are decentralized by nature–why are there so many of them? For one, anyone with an understanding of blockchain can theoretically create a crypto coin. But in order for it to have any value, it must first gain acceptance.
Digital coins typically gain acceptance for one of two reasons. The first is its use as an investment vehicle, much like someone would invest in gold or silver. The second use, which isn’t true of all crypto coins, is that some coins have specific uses on a given blockchain platform.
One coin that merits attention is TokenCard (TKN), which made its debut May 7, 2017. TKN coins exhibit the two characteristics described above, which makes them an attractive coin relative to their peers. But first, it will be helpful to discuss what TokenCard actually is.
What is TokenCard?
First and foremost, TokenCard is a blockchain. Blockchains are verifiable ledgers that store a database of all transactions that occur on the platform. Blockchains are by nature decentralized, meaning that they operate independently of a central authority or governing structure that dictates its operations. Decentralization lends itself to greater accountability and transparency, as all participants can audit the blockchain.
TokenCard can also refer to the blockchain banking platform that allows participants to utilize their blockchain wallet and TokenCard debit card in everyday situations. The platform runs primarily through TokenCard’s app, where users register their account and link it with their bank or traditional debit card. Users will be issued a TokenCard debit card which is accepted worldwide by millions of merchants. The transactions are Ethereum based so they typically settle in less than 15 seconds.
Because TKN is an unregulated cryptocurrency, most, if not all information on it must be found online. Expanded definitions and in-depth discussions about TokenCard can be accessed through its Reddit page.
How Do I Buy TKN?
TKN cannot be purchased with fiat currencies like USD, GBP, or Euros. Rather, users must create a blockchain wallet–a digital bank account used to store cryptocurrencies–and link the wallet to an exchange. Users can use cash or a credit card to fund the account. Then they can purchase Bitcoin or Ethereum with a fiat currency of their choosing. After buying Bitcoin or Ethereum, users can exchange their BTC or ETH for TKN coins.
Another way (though currently unavailable) users can purchase TKN is through TokenCard’s app. In some scenarios, TokenCard believes they can provide simple fiat to crypto exchange functions. This is a straightforward financial service to offer; however, it will likely require regulatory approval. Given the nature of this request, this feature will be released at a later time.
How Do I Turn TKN into Cash?
To turn TKN into cash, users must follow the reverse of the process described above. First, TKN must be converted back to BTC or ETH. Next, these coins must be exchanged for a fiat currency like USD or GBP.
Finally, the funds must be transferred to a traditional bank account. Then the money can be withdrawn from an ATM, completing the cashout. Overall, the process is easy, though it requires a few extra steps.
How to Use TKN?
One of TKN’s main uses is as an investment. By linking their wallet with an exchange and purchasing TKN, users can use a passive buy and hold strategy or active trading strategies in an attempt to realize capital appreciation. TKN, though younger than some of its cryptocurrency peers, has shown flashes of promise since its inception in May 2017. Though currently down from earlier highs, the coin has the potential to break out like it’s done before.
One benefit of investing in decentralized cryptocurrencies like TKN is that they are free from central bank monetary policy. As such, they are also less affected by the exchange rate risk that central bank policy can cause. Price fluctuations are caused by other investment factors.
Additionally, TKN coins can be used to fill up users’ cryptocurrency wallets that are linked to TokenCard debit cards. Thus, TKN can be used in a large variety of normal life circumstances–buying gas, purchasing groceries, even online shopping. Their use as an everyday currency only adds to their value.
What is TKN Mining?
Blockchain mining is the process where groups of transactions, called blocks, are verified and then added to the blockchain ledger. Miners are tasked with solving complex problems that result in a block being approved or verified. Mining adds transparency and protection to the blockchain. Because all blockchains are decentralized and all interactions are visible to all parties, the transactions are typically very secure.
Miners are rewarded with crypto coins once they solve a block. They also have access to mining calculators, which help them determine the profitability of a given mining job. Calculators can estimate a miner’s ability to solve a block and gauge whether a specific job is worth the effort.
Miners have the option of mining solo or in groups called mining pools. Solo mining results in a higher profitability percentage, but more arduous blocks can take longer and may even be impossible to complete. Mining in pools comes with increased bandwidth and mining power, but often at the cost of a lower profit percentage. Currently, TKN coins are not minable.
How to Mine TKN?
TokenCard coins cannot be mined. Therefore, TKN owners need to pursue other ventures to grow their positions. As with other cryptocurrencies, TKN’s market cap rises and falls based upon price movements. As the coin is met with increased buying pressure (demand), the market cap will increase; the inverse is also true. TKN investors could also mine other coins like Bitcoin or Ethereum and then convert them into TKN via an exchange.
How will TokenCard Scale?
One of the biggest problems with blockchains is their general inability to scale. When compared with potential competitors like VISA, blockchains have a tiny fraction of the transacting speed and power. The TokenCard platform, though slower than traditional card providers, will be able to “launch 1,000 transactions per minute with maximum lag of 1 second at load,” per the whitepaper. Again, this isn’t anything astronomical compared to traditional measures, but it does show the progress that blockchain technology has been making.
TokenCard coins are both a viable investment alternative and a way to implement blockchain technology in everyday living situations. The coins have the potential to increase in value while they can also be used as the main currency behind TokenCard’s blockchain based debit card.